SEATTLE, WA / ACCESSWIRE / February 14, 2020 / PayDiverse, a high-risk payment processor provider, has just announced it is approving payment processing accounts for CBD merchants. This news is a huge relief for CBD retailers - both online and those with brick and mortar storefronts - who've previously had their processing accounts closed or declined by banks and payment processors across the country.
Due to the controversy surrounding the sale of CBD products, merchants have long been struggling to find reliable customer payment solutions. In November 2018 a US-based bank, Elevon, began offering payment solutions for CBD merchants; however, the bank withdrew this offering rather suddenly, leaving most retailers without payment processing capabilities.
Most recently, several bank solutions have been resurfacing. PayDiverse has thoroughly investigated and tested these banks and they've each proven to be a sustainable solution for CBD merchants. PayDiverse's current roster of processing solutions includes four banks that are currently processing credit card and debit payments for established merchants selling CBD oils and other CBD products. Each of these banks understand the risks associated with the industry and know the state legalities as well.
CBD merchants have always been deemed high risk by the payment processing and banking industries. While the risk of processing payments on behalf of these merchants may seem obvious, it's not entirely related to the sale of a potentially illegal product. CBD merchants, along with merchants that sell health products, supplements, and nutraceuticals are typically considered to be high-risk merchants due to an increased risk of chargebacks related to the efficacy of their products.
CBD products have been gaining momentum in the health industry for several years. This product is derived from cannabis plants - the same type of plant that THC products come from. While THC, the mind-altering ingredient in marijuana, remains illegal according to federal law while CBD, which doesn't alter the mind, is legal for sale across the U.S. Regardless of the laws surrounding these products, confusion about cannabis products remains widespread and as a result, banks and processing companies are wary of providing processing accounts to CBD merchants.
The apprehension to provide processing accounts to CBD merchants remains, even in spite of the Farm Bill, which was signed by President Donald Trump in December 2018. This bill declared the growth and sale of hemp and CBD products legal in every state. This bill includes CBD oils and CBD infused products, with the exception of food - including animal feed.
Additionally, a bill was passed by the House of Representatives in September of 2019 that allowed banks to work with state-legal marijuana businesses without the risk of federal punishment. While this bill still needs to pass the senate, it provides a great deal of hope for banks and the CBD industry, alike.
Interested merchants can apply directly to PayDiverse for a processing account, which includes secure payment processing solutions along with a variety of features such as pinless debit, fraud protection software, and real-time chargeback notifications. The company also offers 24-hour support, quick payouts and high approval rates.
CBD merchants applying to PayDiverse for a credit card processing account can expect to obtain approval within 10 business days of submitting their application. Upon approval, the company generally works with merchants to set up their processing tools within just a couple of business days.
SOURCE: PayDiverse