How Multi-Bank Processing Protects CBD Merchant Accounts

1. Limited Exposure – by disbursing payments across multiple accounts, CBD merchants or hemp merchants will have a lower risk of overexposure with their banks.
2. Reduced Chargeback Ratio – banks typically only allow for a certain percentage of transactions to be charged back to the consumer. By using multiple banking solutions, chargeback ratios will naturally remain low.
3. Avoid Losing Processing Capabilities – having multiple banking solutions means never going without processing capabilities. In the event of account closure by one bank, our CBD merchants will have at least three backup banks to rely on.

Award-Winning Fraud Prevention

Our secure payment gateway is designed to analyze hundreds of data points including behavioral analytics, machine learning models, elastic order linking and advanced proxy detection methods. This allows merchants to detect fraud in real time and stop it in its tracks. Merchants can customize filters and rules in their payment gateway to automatically decline or suspend suspicious transactions pending further investigation.

Chargeback Protection

When chargebacks appear fraudulent or unwarranted, merchants can instantly file a dispute. We provide support during the dispute process and provide all the necessary tool for our merchants to reclaim the money that is rightfully theirs.

Some ways CBD merchants can prevent fraudulent chargebacks on their own include:

• Train employees to ask for photo identification with all credit card transactions and have them double check that the name is the same on both cards. Remember, a merchant is within their rights to refuse any transaction that they deem suspicious.
• Retain all credit and debit card receipts. File them with care and keep them easily accessible in case a chargeback is initiated and proof of the transaction is required.
• Utilize time-stamped video surveillance for the cash register area. Be sure that the video captures the customers’ faces. This can be used to cross-reference with the time stamp on the credit card transaction and provided as additional evidence in disputing chargebacks.
• Never process any transaction that is suspected of being fraudulent without confirming the information with both the customer and card-issuer.

The Future of CBD Merchants

As CBD and other hemp and cannabis products move toward the mainstream and become legal to use both medically and recreationally in more places, it is likely that banks will be more accepting of CBD merchants. CBD is making its way into additional industries like nutraceuticals and telemedicine. That being said, it is likely that credit card processors will always consider CBD merchants to be high risk alongside pharmaceutical companies and liquor stores. 

Keeping CBD Merchant Accounts in Good Standing

• Maintain a good history with credit card processors
• Consistently perform a high sales volume
• Keep a high balance in business accounts
• Dispute chargebacks whenever possible and back up disputes with strong evidence
• Remain transparent in all communications with your banks and payment processor

Adhering to these standards is something any business should strive for, however, in a new, high-risk industry, it is more important than ever. Today’s CBD merchants are pioneers in their industry, meaning the way they handle their financial accounts will set the standard for how banks choose to work with merchants in this industry for years to come.

In addition to creating a better name for the industry, merchants who keep their accounts in good standing increases the chances of raising their sales potential and processing limits.

How to Apply for a High-Risk CBD Merchant Account

1. Apply online using our secure form
2. Digitally sign your application
3. Submit your supporting documents

That’s it! Once we’ve received your application and all supporting documents, we will review your information and provide you with an answer within 24 hours.

After you’ve received your approval, we will provide you with everything you need to begin processing credit card and debit card payments within 48 hours. You will be set up with fraud prevention that is fully integrated into your payment gateway, as well as access to our online portal where you will be able to fully manage your account and monitor fraud and chargebacks.

To increase the likelihood of approval, be sure to complete all questions on your application form. All answers provided must be truthful to the best of your knowledge. Our underwriters will verify the accuracy of all information provided. Keeping your account balances high will verify your abilities to keep accounts in good standing. Additionally, a well-constructed business plan, competent ownership, and an excellent processing history will increase your chances of opening a CBD merchant account with PayDiverse.