Common Payment Processor vs. CBD Payment Processor
Most companies operating online and offline use common payment processors to accept payments from their users. Common payment processors are the systems that allow companies from the low-risk category to accept payments from the customers without complicating the process.
But when it comes to accepting payments from CBD users, things become a little complicated. The matter is in the fact that CBD businesses can't use a common payment system, like PayPal, for example, to accept and process payments from their users since the payment system considers such transactions to belong to the high-risk category.
What Are High-Risk Payments?
High-risk payments are financial transactions that come with a high chargeback potential, and the reason for requesting a chargeback can be quite different. Logically, most of the payment processors aren't eager to lose profits because of the chargebacks, and that's why they partner with low-risk businesses only.
CBD products, as well as health, wellness, and nutraceutical solutions belong to the products that are more likely to be charged back by the customers. One of the reasons for the high level of chargebacks in the CBD niche is the expectation-reality mismatch, which is sometimes the result of overpromises from a brand.
Still, you have no reason to despair. The list of high-risk businesses is longer than you might think. In addition to such intuitive suggestions as gambling websites or companies offering weapons, such as completely clean and legal businesses from the real estate and travel industries, also belong to the high-risk category.
So, you are definitely not alone with the payment processing issue, and to make it work, you have two options to choose from.
CBD Payment Processor - 2 Solutions You Can Go With
To get started with accepting payments from your customers, you have to make a choice between a dedicated payment processor for CBD and an integrated payment system that sometimes comes as a part of the platform you run your online store on.
Let's briefly review both options!
1. High-Risk Merchant Account CBD Payment Gateway
As the first option, you can use the services of a payment processor CBD. This is an intermediate company that will process the payments and withdraw them from the CBD niche. To put it simply, a CBD industry payment processor takes the responsibility for processing the payments but obliges you to pay more for their services in order to cover the likelihood of chargebacks.
A lot of CBD companies use the services of a CBD online payment processor since this is almost the only option available. Still, you have chosen an intermediary very carefully to feel calm about the safety of your payments and avoid too high fees (which often aren't publicly disclosed or are even calculated on personalized terms, depending on your CBD business specifics).
2. Integrated Payment Processors
In the meanwhile and in response to the rise of CBD popularity, some of the most popular platforms that power online stores have created their dedicated systems to accept and process payments from the CBD niche. Shopify and WooCommerce are some of them so if you haven't yet developed your online store and have no desire to partner with the third-party CBD high-risk payment processor, this is an option that may suit you.
- Shopify Payment Processor for CBD products. Shopify CBD payment processor isn't the only opportunity the platform offers. Using it as a foundation, you can develop your online store, customize it in the way your users find it intuitive, and market your business with the help of a pre-developed set of marketing tools. The pricing offerings are quite reasonable as well.
- Woocommerce CBD payment processor. You can sell your CBD products with WooCommerce as well. Most of the features coincide with the one offered by Shopify. Payment processing is now available for the US only but there is a great likelihood that WooCommerce will expand it for the European market very soon.
Summing up, an integrated CBD payment processor is an option for getting-started businesses. The main benefit is the opportunity to develop an online store and set up all the necessary additions for securing transactions and launching marketing campaigns from a single platform.
As for dedicated CBD payment processors, this is a solution for a CBD company with a WordPress website, for example. Also, you have a lot of systems to choose from. The great choice of tools is also a benefit when you are forced to change a CBD payment processor because of the payment suspension. Surely, it is better to avoid such situations, so let's find out how to secure your business from being suspended.
The Main Reason for CBD Payment Suspension
The main reason for CBD payment suspension is the medical claims in your marketing content. FDA strictly prohibits making any kind of overpromises, referring to CBD as a working wonder cure, as well as making too bold medical statements. It also pays attention to branding and market positioning. Our practical experience with CBD payment restoration shows that the payments can be suspended because the CBD brand promoted itself as an online pharmacy offering medical cannabis. That's why you have to be very careful with every word you communicate to your users.
The latter is also important for organically reducing the probability of chargebacks since prospective leads are more likely to set the right expectations from the very beginning.
How to Secure Your Payment From Being Suspended
There are three simple practices that allow you to be much calmer about the probability of payment suspension.
1. Partner with a Trusted CBD Payment Processor Only
Despite the relatively large choice of CBD payment processors, not all of them are equally reliable, trusted, and transparent. To protect your business from payment suspension, make sure to partner with honest CBD payment vendors only. To find the company that suits you best, get in touch with several ones, compare their fees, and pay attention to the turnover limitation. You may also research the users' reviews and proceed with the company with the most reasonable terms and conditions.
2. Avoid Medical Claims in Your Marketing Content
Get back to your content one more time and make sure you have neither medical claims, no bold statements, and overpromises. Develop a strong habit of referencing the medical research results when communicating the potential benefits CBD may provide to your users. What's more, even in this case, make sure not to make too bold statements since the unambiguous opinion of the FDA is that CBD still lacks scientific background. For example, instead of saying something like "CBD can help with chronic pain", you are better to say that "CBD is believed to be effective for chronic pain, according to the research".
P.S. While there are clear rules you should follow when creating content for your website and SEO, there are no strict rules for email marketing and social media promotion. Don't hesitate to try other marketing channels that allow for communicating with the users in a more open and confident manner.
3. Get Support From a Specialized Agency
As one more option, consider partnering with a specialized CBD agency that is well-versed in the best practices for boosting CBD sales, creating CBD marketing content, and setting up the payment processing system. CBD local SEO can help you with all of these tasks so feel free to reach out to us if you feel the need for competent support and assistance!
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