The merchant account used in the CBD Oil industry for online payments and transactions is the CBD Merchant Account. The Cannabidiol (CBD) is classified as High Risk Merchant Account. It is very much annoying to accept online payments through debit and credit cards for the CBD business because of its high risk classification.
Now the question arises is that why a business like CBD is considered high risk? There are various reasons that result in the High Risk classification of CBD business.
The most basic reason is that CBD being manufactured from the hemp plant. The scarcity of CBD also accounts for the classification of the CBD business. The CBD merchants are finding it difficult to get approval for the merchant account.
The High Risk classification of the CBD business also depends on the aspects like low discounts, the size of the business, High chargeback ratio, etc. a business also falls into high-risk category depending on the guidelines of the financial institutions and if the business satisfies the requirements of the institutions. The CBD business is more prone to fraud and duplicity which also pushes the CBD business into the high Risk category. The consumption of CBD products in the US is only allowed on legal prescriptions. These are a few reasons for the High Risk classification of CBD business.
It is very necessary to turn towards a reputed Merchant account provider, for the solution of your High Risk CBD business problems so that you are able to perform credit and debit card processing. The CBD merchants have every right to get information about the best High Risk Merchant Account Services provider with a genuine history.