merchant account uk | IBS Payment Solutions

Products containing CBD used for medicinal propose were officially recognized as a ‘medicine’ by the Medicines and Healthcare products Regulatory Agency (MHRA) in 2016.

And as of last year the use of CBD oil has been made 100% legal in the UK for medicinal purpose only.

CBD stands for cannabidiol, one of many cannabinoids found in the cannabis plant. CBD tests have shown medicinal properties and health benefits like helping reduce seizures in cases of epilepsy, help with anxiety, treat chronic pain and act as an anti-inflammatory.

While some are still apprehensive about using it, CBD oil usage has seen an impressive increase since being legalized with more and more people being aware of the medicinal advantages it offers.

The effects of its slow yet steadily increasing popularity can be seen online with a large number of businesses selling CBD oil and related products. There are also a few key food health stores selling CBD oil products to customers.

Why the CBD Oil Industry is considered High-Risk?

The expression, Cash is king, rings the most true with Cannabis industry.

Despite the selling of CBD oil being made a completely legal business, the merchants are still forced to deal in cash due to the constant security threat and industry stigma. Banks and payment processors are highly wary of undertaking such businesses on board, understandably due to the huge risks involved.

CBD oil is extracted from cannabis and tied to marijuana which makes it a high risk industry. And similar to other high risk businesses, processors rarely accept applications of CBD merchants.
Many of these financial institutions have little idea how the industry functions because it’s relatively new.
In spite of the various proven health benefits broadcasted by CBD oil consumption, there are also side-effects to it. The controversial nature of selling CBD oil has led banks and processors to shy away from the industry.
Banks are afraid of reputation damage caused by taking on such businesses.
There are huge risks and too many legal hurdles to cross in terms of CBD businesses.

CBD oil Merchant Account Processing

With the many uncertainties and reservations surrounding the industry, CBD merchants can still find willing merchant account providers offering CBD industry-specific merchant account solutions.

Basic essentials required to open a CBD Merchant Account:

A legally compliant business
Positive & Long credit processing history
Healthy rolling reserves
High monthly volume
Low chargeback ratio

The key to finding the right merchant account provider is to find one who provides industry-specific merchant solutions. In the case of CBD merchants, a High Risk merchant account provider specializing in CBD merchant accounts would prove to be an apt fit.

A merchant account provider having significant experience in this industry will be aware of the workings and risks involved with the business offering services deemed fit for your business. Such processors will also help a merchant mitigate and lower risks by offering tools for the same.

A secure payment gateway is imperative with majority of CBD products sold online. Look for processors that integrate payment gateways with merchant accounts. There are plenty of reputable merchant account providers offering both, IBS being among one of the top-rated processors. Since CBD merchants deal with high risk products, a payment gateway that is PCI compliant is of paramount importance.

Securing a High Risk Merchant Account for CBD oil and related products is made easier with the right processors!

Merchant accounts are essential regardless of the type of business you operate.

Merchant account is a kind of bank account for business owners. It specifically allows credit & debit card processing and various other electronic card payment transactions like gift cards. It acts as a middleman between the business and its customers while transferring funds.

Merchant account providers offer a number of tools and services that enable you to run the financial aspect of your business with ease while also further enhancing it. All of the benefits together give a significant boost to your business and assist in steady growth.

Some important features:

Today, businesses are spoil for choice while looking for a merchant account provider. When choosing a right merchant account provider for your business, you should make sure that they offer these integral features –

Ability to accept payments via mobile

Quick and simple payment process

Data security and safe payment transactions

Customizable and flexible features

Continuous and quick customer service support

Merchant Account advantages that help business significantly:

-The popularity of credit and debit cards has risen dramatically over the years. Almost every other person uses some form of credit or debit card instead of cash. The ability to accept different credit and debit cards is the most important benefit that a business can achieve.

-It is a proven fact that people tend to be impulsive and spend more than average when they pay via credit cards than when using cash because they cannot see the money leaving their pockets. Business owners that start accepting credit cards often observe a significant increase in sales gradually.

-The additional benefit of accepting payments online helps to streamline your payments and improve cash flows. It simplifies the payment process and enables you to handle transactions with ease. You are spared of the long process of counting cash manually at the end of each day.

-Better cash flow management and forecasting are the main benefits obtained from employing electronic payment methods.

-Until merchant accounts there was no alternative to escape bounced checks. But now, open a merchant account and start accepting payments electronically. It is no longer necessary for your business to accept checks for payment.

– Now, if you are a merchant with an online business, you cannot afford to not accept plastic money. Majority of the customers always prefer to pay via credit cards when shopping online.

-With a merchant account you give customers the flexibility to make payments in numerous ways. Whether making credit or debit card transactions, online payments, mobile payments, etc. customers will be content and satisfied with the options available and the ease in making purchases.

After all, Merchant Account enables you to streamline your finances thereby improving overall business efficiency.

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