CBD (short for Cannabidiol) oil or hemp oil is derived from a naturally occurring chemical constituent found in Marijuana plant. For some time now, extensive studies have been done on effects of CBD on human body. It has been used to treat various human conditions including pain relieving, anti-addiction, and treating inflammations.
It has also proven to be effective with minimal to no adverse effects on either humansor animals. This has led to it being labelled “The Wonder Weed”.
Is CBD Even Legal?
As of the time of writing, majority of US states have developed policies regulating its use and its industrial production. Among the 33 states include; Florida, New York, Washington, and Alabama.
Others like California recognize its industrial production and have removed barriers to its production.
In 2014, President Obama’s signature recognizing the use of industrial hemp allowed institutional research and ultimately the legitimacy of its constituent components.
A CBD payment gateway basically works in such a way that funds are withdrawn from customers account and are deposited into the seller account for the transaction to be successful. A great example would be https://thesoutherninstitute.com/cbd-payment-gateway/.
CBD is manufactured form industrial hemp. This by default makes its sale a high-risk business due to chargebacks caused by fraudulent sales. The fact that not many banks are willing to venture into or support the industry makes it a challenge to business. Setting out from the crowd to prove the ability to handle CBD merchant accounts without challenges can prove to be a daunting task. Many popular payment gateways such as Skrill and PayPal do not accept transaction from such industries.
CDB payment gateway providers have to approve merchants rigorously to ensure customer confidence.
Choosing the Right CBD Payment Gateway Provider
A number of things need to be considered before landing on particular payment gateway provider;
1. Does the company understand the complicated business of marijuana? – Companies offering payment gateway solutions tend to be lucrative targetby criminals. Lack of support from bank institutions means they end up having a lot of money in their cash registers. In fact, a number of banks, of note: JP Morgan, have clearly stated their desire to stay away from the industry however profitable.
2. Is there flexibility in terms of payment process? -Look for ones that offer a wide variety of additional layer protection to ensure safety on your end and to protect you from charge-backs (loss incurred from fraudulent transactions.)
3. Does the institutional have a high and stable payment processing volume? – This very important since it determines how much investment it has undertaken to ensure everything go as smoothly. Low volume translates to lack of investment in the infrastructure since no one invests in a business that is not making profit.
4. Fees. -In order to build a successful business, you’ll have to consider among other things, cost. This should ensure you don’t get driven out of business due to the high cost of doing it. Fees exceeding 6% are considered unscrupulous and therefore should not be accepted however much they try to convince you.
5. Transparency – This assures you that they are well regulated and that they have a history of great customer experience. It also ensures that there are no hidden fees and logistics you will have to deal with.