CBD oil made from hemp, that is THC-free, is legal to sell in the UK, but many merchant processors shy away from accepting vendors that sell it because they consider that particular industry to be high-risk. It can be hard to find merchant processors that offer good rates and that want to work with companies that sell CBD oil – however, there are some companies that do allow CBD sellers, and that will do their best to accommodate sellers large or small. Read How Much Does It Cost To Set Up a Merchant Account Info .
If you are a start-up business with a low volume of sales
Then you might find that you have to accept long holds on your transactions, or to have a rolling balance. You may be charged higher rates than average, but that is something that you might need to accept until your business gets established. Once you have a monthly processing volume of £30,000 or more, you can expect better tratment from merchant processing companies.
For smaller companies, eCheck solutions are a good option. This is particularly true if you are selling products online and dealing internationally. There is minimal risk for you as a seller, and it is comparatively friction-free for the buyer too.
If you are a more experienced brand and you can beet the volume requirements that some of the high-risk payment processors use, then you can get some quite beneficial rates compared to the lower-volume accounts. A transaction rate of up to around 8% is not unusual, and that is still higher than what you might see with some of the low-risk accounts for more mainstream businesses – but if you are selling internationally and not just in the UK then you may have to accept that, and accept rolling reserves and slow settlements too.
For your fee, plus an annual account maintenance fee, you can get access to payment processing accounts that will allow you to trade in 100 currencies. Web-merchant.co.uk for example allows 100 currencies, and settlements in GBP, EUR, Bitcoin and RMB – that’s a lot of flexibility.
The identity checks required are extensive
Because of the comparative high risk of the industry that you are getting into, and you will need a trading website that is already established, and you will need some decent trading history. Expect to be asked about chargebacks and refunds, and to need to show proof of your past history.
The CBD industry is growing rapidly, and CBD is becoming legal in more and more states in the USA. The UK’s own attitude towards cannabis in general is starting to soften, although it will take some time before there are any changes to the law – if that ever happens. CBD may eventually occupy a category outside of that of cannabis in the minds of more officials, and that will make it easier for merchants to sell it online without fear of repurcussions. For now, however, the best you can hope for is a high-risk specialist offering an account. For futher details click at www.thesoutherninstitute.com/cbd-merchant-account/ .