Why You Need Merchant Account for CBD Business
Recent studies and researches have shown that CBD is now a legal thing to merchandise in parts of US however internationally, it is still confused with marijuana. Marijuana is illegal to grow, supply, sale, or purchase so when it CBD is considered marijuana its growth, supply, sale, and purchase also becomes difficult. Due to these bans and restrictions on those related to CBD business face huge loss when it comes to selling and purchasing CBD openly. Their customers are always dependent on financial institutions or banks to clear their payments while if the payments aren’t cleared, despite demand, the sale remains low.
Therefore, you need to have a solution that helps you in making better transactions such as making payments to purchase material to produce CBD oil and take receive money from clients when you sell CBD oil. There are many complicated and risky ways for CBD business transactions that can help CBD business holders. However, risks attached to such ways always restrict one for using them. The best way for the successful transaction of CBD business is by having a merchant account.
What Is Merchant Account?
Merchant account, as the name denotes, is a special type of account for merchants or business holders that helps them in their business transactions. This merchant account has little bit different rules for the holder than normal accounts. To get a merchant account, business holders, usually make an agreement with a financial institution. The account is opened in a bank however a third party gives guarantee of the things and enable banks to open this account. Moreover, getting a merchant account is also not an easy thing and you need to fulfill a lot of conditions to get this account. Merchants can also make contract with banks directly or by using a third party service and involving other financial institutions. In both ways, the merchant is obliged to fulfill all the conditions that are written in the rules and regulation of merchant account.
How Merchant Account Helps CBD Business?
Well, there are many ways in which a merchant account helps a business holder who sales CBD, some of these ways are discussed below:
1. It Accepts Payments from Multiple Means:
Well, when it comes to using payment methods, due to being banned, payments for CBD are always difficult to make. Moreover, not all countries use same means of payments such as banks operating in one country may or may not be operating in another nation. Moreover, money transfer services like PayPal are available in countries like Pakistan and many others. If your services are limited, you won’t be able to capture the markets globally. Now, when you don’t accept orders from half of the world, what would be your profit? Half of your profit will go in vain because you couldn’t supply CBD even though the supplies were available.
Having a Merchant account can save you from all of the chaos because it allows you to accept payments from multiple means. You can accept payment through national and international banks, different money transfer services, or done by using credit or debit cards. By doing so, you will not lose even a single customer. The amount of profit will increase with each passing day or your business will prosper.
2. It Gives Premium Prevention from Frauds:
When it comes to making payments for buying CBD, consumers are as confused as buyers. This is because CBD is confused with hemp or marijuana and due to being illegal, buyers are worried about their money to get wasted while making illegal transactions. Therefore, instead of using right means, they use fake accounts and stolen chargebacks to make transactions and pay for the price of CBD. In this way, most of the time, payments get bounced and money is wasted before reaching to you. Due to such fraudulent payments, CBD business holders face a huge loss every year.
However, when it comes to using Merchant accounts, the businesspersons are completely saved from such fraudulent payments. Merchant account holder banks are able to detect fake or real payments. They know that when a payment is manipulated or changed during transactions and if the details are right or wrong. Therefore, it saves you from losing your precious supply by sending it to fake consumers.
3. Real Time and Around the Clock Chargeback Alerts:
To make online payments secure for the consumers, many credit and debit card service providers help them to get their money back in case of some inconvenience and problem. Such as, if you have sent CBD to a customer and instead of accepting it, it files for a chargeback, the bank will get obliged to send his money back. The whole process happens very quickly that a merchant doesn’t get time to respond or file a dispute.
However, when you have a Merchant account, you get in-time and correct cashback alerts. It means, whenever a customer files for cashback query, before sending him the cash, the account providers will send you an alert. On the basis of this alert, you can manage the cashback dispute by filing a complaint. Now, till then the complaint is solved, your money is safe in the account and will not be sent to the customer. In case you were right, at the end of the results, the request of customer for cashback will be terminated. In this way, you will be saved from facing any sort of loss.
These are some of the real-time benefits that are attached to the Merchant account. These benefits are completely in favor of the business holder. However, to enjoy these ripe benefits, in the long run, you will have to maintain your merchant account in a good position. For that, you will have to maintain great credit and debit history while keeping with the lower credit limit. Also, you should increase sales by offering high-volume sales. All with this, you need to balance your business and bank account. By doing so, you can enjoy ripe benefits of merchant account for the rest of your life.