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Running an online CBD business faces challenges like navigating regulations and securing reliable payment processing. By choosing specialized providers and diversifying payment options, businesses can protect profits and avoid disruptions in this high-risk industry.
Running an online CBD business comes with its unique set of challenges, including navigating stringent regulations, processing payments, and managing compliance issues. Yet, the key to boosting your profits lies in overcoming one of the biggest hurdles in the industry: reliable payment processing.
Recent shutdowns of payment processors for CBD and cannabis products have made this obstacle even more pressing. For instance, in late 2022 and early 2023, major providers halted cashless ATM transactions, which cannabis companies relied on for their debit transactions. This followed Visa’s announcement discouraging the use of such services, causing widespread disruption for CBD and cannabis businesses. Many were forced to revert to cash-only transactions, which not only hurt customer convenience but also limited profit potential (Cannabis Industry Journal, Greenway Magazine).
Similarly, popular platforms like Square, Shopify and Elavon have ceased processing payments for CBD merchants due to the legal complexities surrounding cannabis, leaving many businesses scrambling for alternatives. These shutdowns have highlighted the importance of choosing payment processors with deep expertise in high-risk industries like CBD.
To protect and grow your business despite these obstacles, adopting a more robust and diversified payment system is key. Here’s how you can capitalize on new opportunities:
1. Choose a Reliable Specialized Payment Processor: Opt for providers that specialize in CBD and cannabis products, such as Integrity Payments Group (IPG), which offer solutions built specifically for your industry. IPG provides seamless integration with major credit card networks and ACH payments, helping you avoid disruptions from mainstream processors.
2. Diversify Payment Options: Experts advise offering a mix of payment methods, including credit/debit cards, ACH payments, and even cryptocurrency. Having multiple processing options ensures that your business can quickly pivot should one method become unavailable (Greenway Magazine).
3. Compliance and Fraud Prevention: Use a processor like IPG that emphasizes compliance with both federal and state regulations. Ensure your products have valid certificates of analysis (COAs) to avoid unnecessary shutdowns or rejections by processors (Cannabis Industry Journal).
With frequent payment processor shutdowns becoming a reality, your business cannot afford to rely on unstable systems. Learn more and secure a reliable, compliant payment solution through IPG and prevent disruptions in your sales.