CBD implies Cannabidiol. It is one of the active cannabinoids that is prevalent in cannabis. It serves to be a major compound offering a wide range of potential health benefits without any major side effects. If you are interested in CBD, have you heard of the CBD oil merchant account? In this post, we will help you understand the process of getting a CBD merchant account for your start-up business.
An Insight into the CBD Merchant Account
You might find it overwhelming to open your CBD oil merchant account. As you wish to open a general merchant account, it will have its own set of terms & conditions. As far as CBD merchant accounts are concerned, the merchants are expected to maintain specific state regulations if you do not wish to end up in trouble. You can come across several specialized firms that allow you to get and open a CBD oil merchant account easily.
Most agencies will come up with advanced processing solutions that will be required by merchants for selling the respective products –including active hemp tea and CBD components.
Steps to Opening and Getting a CBD Oil Merchant Account
If you wish to set up the CBD oil merchant account for your business, you are expected to follow several rules and regulations. Here are some important tips you should know about:
- Maintain a Decent Credit Card History: If you are new to the business of CBD oils, you should know that you should have a decent credit card history. Owners that do not have any overdraft fees or do not feature any history of poor balances will have a better chance of getting the merchant account opened and set up easily.
- Ensure Balanced Processing Volumes: There are some merchant account owners who would not invest until they have ample demand for the CBD-related products. It is required to maintain a balanced processing volume or a higher volume of transactions. This will reveal to the merchant account service providers that you are worthy of the overall investment. It will also allow them to invest more.
- Follow the Rules & Regulations: Before starting the CBD business, you should ensure whether or not the state in which you operate your business will be offering permission for the sale of CBD-related products. If you are quite sure about the given set of rules & regulations, then you should get your business licensed. Most of the merchant account service providers make it mandatory to submit a licensing copy when you wish to apply for the merchant account.
Some of the essential documents that you might be required to present before the merchant account service providers for launching your CBD merchant account include:
- Incorporation certification
- Incumbency certification or some similar document
- Relevant copies of a valid passport with proper bearers signatures for the company owners and offices
- Application for the account opening
When you wish to set up the CBD oil merchant account, you need to ensure that the website has the following elements:
- Terms & conditions page
- Refund and deposit policy page
- Contact us icon with proper phone number and email
- Company’s name in the footer
- MasterCard and Visa logos
Acquiring the CBD Oil Merchant Account
For those who are not sure about the CBD industry, it is important to understand that CBD tends to differ slightly from marijuana. CBD serves to be a cannabinoid that is a component of the natural part of the cannabis plant. It tends to feature neuroprotective, anti-bacterial, and pain-relieving properties. Moreover, CBD has also been proven to help with reducing anxiety, preventing seizures, and even dealing with blood pressure fluctuations.
On its own, CBD is not a psychoactive compound. As such, this implies that it will not lead to intoxicating effects in comparison to consuming pure marijuana. Marijuana is known to contain illegal levels of THC (Tetrahydrocannabinol) in addition to other cannabinoids. In the market, CBD oil can be sold in the form of CBD isolate or only CBD. It can also be sold off as a complete spectrum of CBD –including other cannabinoids featuring minimal levels of THC –less than 0.3 percent of the total weight.
The overall rules & regulations with respect to production, consumption, and sale of CBD across the United States of America tend to differ from one state to another. However, on a federal level, CBD is categorized as the Schedule I drug under the regulations of the Controlled Substances Act.
While CBD turns out to be legal in several states of the nation, the categorization implies that agencies related to federal law enforcement can close the production of CBD manufacturers. They might even go ahead with pressing charges against the end users upon their will. This is the reason why the CBD oil industry is regarded to be under high risk by most of the acquiring banks responsible for supplying businesses with the help of credit and debit card processing solutions.
In the past few years, the consumption of medical marijuana has been legalized in most US states. Therefore, these are also available online. While there are some controversies related to the legalization of CBD and its related products, the overall use of marijuana for medical reasons is renowned because of its host of health benefits.
CBD oil, along with its associated range of products, has a wide range of health benefits. The oil has proven to be helpful in relieving pain & inflammation. Some of the additional benefits of CBD oil are:
- Lowering cholesterol due to the presence of polyunsaturated fatty acids
- Containing a rich source of antioxidants –vitamin E
- Balancing the internal hormones –helpful in boosting your overall mood
- Rich source of essential compounds like zinc, calcium, and magnesium
- Enhancing the overall texture of hair
As a CBD business owner, it is imperative for you to be aware of the rules and regulations of each state in the country. This will allow you to set up the merchant account easily.