Certain industries are considered high risk merchants. Businesses that fall within this class typically have very significant discount rates and big security reserves. A company is usually classified as a high risk merchant if the business they are in has a greater risk of fraud and chargebacks. In the event of being a CBD oil retailer, the high risk label is generally due to the company being a reputational risk for lenders and banks.
As CBD offers online, it is important to understand what one credit card processing provider believes high risk, another may view as acceptable. This is based on each provider’s underwriting guidelines. Merchants who offer high risk services or products should look at a supplier that specializes in high risk merchant accounts.
Businesses that are deemed high risk need to know who the perfect CBD merchant chips are. Those high risk merchant account providers, such as PayKings, that are prepared to process transactions for your high risk business are providing solutions to those retailers like yours at the CBD oil sector — retailers who demand payment processing most. These CBD merchant processors have the ability to get you set up with credit and debit card processing since they’re ready to take the liability for the greater risk associated with your high risk business.
Since the FDA doesn’t recognize CBD Oil as medicine, but instead a dietary supplement, your CBD Oil merchant account is regarded as high risk, despite the fact that you don’t technically require a prescription to legally purchase or consume CBD Oil in america.
And since your CBD Oil merchant accounts was categorized as higher risk, you’ll have to research high risk CBD merchant chips, like us here in PayKings, because the larger, well-known banks won’t take on your CBD oil merchant account to process transactions themselves. The way it works is to get a separate legal entity to take part in the payment processing while they, the banks, sign on as rigorously the depositor.