One of the fastest growing businesses in the United States right now is the sale of marijuana related products. In particular, people are selling what is called CBD oil, a product derived from hemp that does not have any psychoactive properties. It is a cannabinoid, one of the hundred or more that are in the cannabis plant, all of which have beneficial properties. In particular, CBD oil is very popular because of all that it does for the human body and your state of mind. Despite these benefits, and the legality of marijuana products in certain states, many merchant service providers are not willing to jump on board. This is also true with banks that will not allow transactions that go through merchant services to use their bank so that people can get their money. If you are just starting up your very first CBD oil business, and you need to find a high risk merchant account provider, these tips will lead you to one that will help your business start to grow.
Why Do You Need A Merchant Account To Operate A CBD Oil Business?
Most people that have used marijuana related products for years will instantly understand why this is so beneficial. For so many years, people had to purchase their marijuana products on a cash only basis. That is because it is a Schedule I substance, at least according to the federal government. Despite its many benefits, it is still regarded federally as an illegal substance, and that’s why it’s hard to find merchant account service providers that are willing to work with upstart, or even existing, businesses that sell CBD oil. Once you have one of these in place, people that have credit cards and debit cards can make purchases. This is going to help your business grow so much more quickly. Finding one of these merchant account providers is the key to taking your fledgling business and making it into a very successful endeavor.
How To Find These Flexible Merchant Account Providers
Merchant account providers that will allow you to work with them are regarded as high risk merchant account businesses. The term high risk does not refer to how risky the product is to use. It pertains to a list of specific industries that are considered to be high risk from the perspective of banks and merchant account companies. If you are selling timeshares, cigars, or adult related materials, you would be in this category. CBD oil is also going to be on this list, and you need to locate a business that is flexible enough to give you a merchant account to do transactions. Most people are able to find these businesses by searching for high risk merchant accounts. They will see many different listings on the web. This will enable you to get estimates from all of them, compare the prices they are charging for their equipment, and make a decision on which one you would prefer using. Also consider the amount they are charging per transaction. This can be quite high. You may want to take a few days to get every single merchant account estimate back before making your final decision.
Are These Merchant Accounts Harder To Set Up?
These merchant accounts are really no different than regular ones. The only difference is that the business that provide you with the equipment, and the ability to do these transactions, is allowing you to sell CBD oil. You do have to find a bank that is willing to work with these merchant account companies. If you are not able to find a bank that will work with you, having a merchant account will be pointless. Therefore, you need to find a bank and merchant account at the same time that will help you as you setup your business. If you can start taking payments right away, that money will be deposited into your account from all of the customers that will purchase using their credit and debit cards daily. Set up time is usually no more than a single day. In regard to receiving the equipment, it might come in two or three days by mail. Learning how to use the equipment will take a couple of hours unless you have use this equipment before. Total time for setting up everything will be about a week, including the time it will take to research and find the right merchant account for your business.
Are All Of These Merchant Services More Expensive For New Businesses?
One final thing to consider is how these companies will regard you if you have never had a business before. For example, when you have good credit, and you have an established business, these companies will not have any worries working with you. However, if you are just starting out, they will not see you in the same way. They may actually have packages that are designed for only startups and they may cost more per transaction. They may also charge additional money for renting the equipment that you will use at your physical place of business. Not all of them will do this, but is just another reason that you should compare as many of these businesses as you can. You will eventually be approved, preferably with one of the businesses that offers a reasonable cost for their services.
Setting up a new merchant account for your startup CBD oil business should take no more than a single week. It will take a few days to go through the different estimates you receive and finally choose one of these companies. Always look at the amounts that they will charge for transactions and equipment rentals. After you have evaluated this information, you will make the best choice, selecting a business that will not only approve you but will give you reasonable rates for their merchant account services for your startup company. This will be so much better than only doing transactions by cash. You will literally have a full-featured business, one that can take orders at your place of business and on the web.