How to Restore Payment Suspension in CBD Business
Those CBD products that are processed from industrial hemp are legally allowed to be sold and used in most US states, unlike the ones that come from marijuana. US legislation also draws a clear line between marijuana and hemp but still, it doesn't make the lives of CBD sellers easier. To sell their CBD solutions and accept payments from the customers, CBD brands have to partner with CBD payment processing vendors but even in this case, there is no guarantee that a CBD merchant account will not be suspended.
In this article, we are going to tell how to deal with CBD payment processor restoration, and most importantly, how to prevent such situations in your business practice.
CBD Payment Suspension - Who and How Can Block Your Payments
CBD payment suspension means canceling the opportunity to receive and process payments the users make on your website. From the business perspective, it means a 100% downtime and loss of customers' trust who expect their CBD orders to be quickly processed and delivered. Who is empowered with such competencies to make your CBD hemp store payment gateway canceled? There are two authorities your business can depend on.
FDA (Food and Drug Administration)
As you know, the FDA has little loyalty when it comes to the products infused with CBD. Despite the fact it has already approved some CBD solutions for medical practice, it still remains skeptical when it comes to the majority of CBD brands and prohibits them from selling their products as edibles, dietary supplements, and vitamins. FDA has also strict guidelines for CBD products marketing and prohibits making bold medical claims, even in the case they are backed up with scientific research.
Otherwise, FDA may send a warning letter and initiate a payment suspension until you revise and clean your marketing content from medical claims, overpromises, and other tricks that may potentially stimulate the customers to buy CBD.
CBD Payment Processor
What payment gateways allow CBD sales? Actually, there are a lot of reliable CBD payment vendors you may choose from but each of them also has a set of requirements you should follow. While CBD payment processors are well aware that they are dealing with high-risk businesses and compensate for it with higher fees, they still want to protect themselves from chargebacks which are very common for CBD products.
That's why they oblige CBD companies they work with to stay transparent and FDA-compliant. Otherwise, there is a risk of chargebacks surge because of the expectations vs reality mismatch on the side of CBD buyers. In most cases, the requirements CBD payment processors have, coincide with the one FDA has developed for CBD businesses but you are still better to check them one more time before making the final choice on the payment gateways that allow CBD oil.
The Main Reason for CBD Payment Suspension
The cases when a CBD oil payment is canceled are quite common for this business. However, the process of CBD merchant restoration is more difficult than preventing payment suspension. Making too straightforward medical claims is the top reason why your merchant account can be suspended. So, make sure to revise your marketing content one more time and teach your content writers and marketers to be firstly, honest, and secondly - a little vague.
Potentially fraudulent activity that comes from your website can be one more reason for CBD payment suspension. For example, fraudsters can use stolen credit cards to pay for CBD products. Since most of the payment systems, and the ones the high-risk businesses use, are equipped with machine learning anti-fraud solutions, such cases are very easy to track and block your account for fraudulent activity.
How to Restore Payment Suspension Back
CBD payment processor restoration process is most likely to take some time and effort. Here is what you can do to restore your CBD merchant account back.
- Get in touch with your payment processor. Most of them have round-the-clock customer support and are available via different communication channels.
- Find out the reason for the account suspension. Most likely, it will be the presence of the medical claims in your content. Additionally, kindly ask the merchant to provide you with their specific requirements towards CBD partners they collaborate with.
- Proceeding from the reason for your account suspension and being guided by their requirements, take measures to fix the issues as soon as possible. As a rule, you will have 30 days to deal with them but you are better to get started with solving the problems instantly since your having your merchant account blocked means inability to receive payments from the users and losing their loyalty.
- After you are done, get in touch with your payment vendor one more time and kindly ask them to check the improvements. As a rule, these actions should be enough to restore your merchant account.
- If the process of restoring your payment account is delayed by the processor, consider switching to another vendor. There are several tried and tested CBD merchants the collaboration with which is very likely to be effective and trouble-free. P.S. Before signing a contract with a new processor, make sure to carefully read the one you have signed with the previous one. Sometimes it may contain clauses obliging you to pay a fine if you initiate the contract termination before the specified date.
CBD Website Compliance Checklist
Preventing your CBD payment account suspension is easier than restoring it back. Feel free to use our checklist to make sure you are unlikely to face account blocking.
- No medical claims, overpromises, and too bold marketing statements in your content. You have already got it - referring to CBD as a miracle cure is a direct way to get your merchant account blocked.
- Age confirmation popup. While it is impossible to check the actual user's age until he/she enters the bank card credentials, you still should have an age confirmation popup on your website. Most states allow 18-21+ users to shop CBD.
- FDA disclaimer in the footer. You also have to inform your users that CBD products aren't approved by the FDA and using them is their sole responsibility. Some CBD brands also point out the possible side effects and contraindications (the main ones are pregnancy, nursing, and severe mental health disturbances).
- Contact information for getting in touch instantly. This is another confirmation of your com[any's real existence and legal operation on the CBD market.
- Lab test results instantly available on the product pages. Federal law obliges CBD manufacturers to carefully test each bunch of their products and share the lab test results publicly. The document itself should clearly specify the amounts of CBD and THC in each of the solutions you offer.
- Law-compliant product packaging. The packaging of your product should also indicate the list of the ingredients, the user instructions, precautions, and safety measures.
Running a business in the CBD industry can be as profitable as challenging. Despite the legal status of CBD products in the US, you still have to be smart with your financial transactions and protect them from payment suspension. In this article, we have shared the best practices for payment suspension prevention and restoration.
You are welcome to use it and contact us for additional support if your CBD business has faced a stumbling block with restoring your CBD merchant account! We have a lot of practical tips and insights so let us instantly help you!
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