The CBD business is booming, but there are still some bumps to compete with for CBD owners seeking payment solutions, especially if they want to move beyond Stripe. The following dives into some alternatives to Stripe, focusing on choosing a payment processor that frequently boards CBD merchants and accepts high-risk. After all, while Stripe is a great payment processor, it focuses primarily on low-risk merchants.

Key Takeaways

  • CBD is considered to be high-risk by banks
  • Corepay is currently the leading CBD payment processor
  • CBD merchants will pay slightly more than traditional merchants due to the risk

Why Is CBD High-Risk for Merchants?

The nature of the CBD industry, which is closely tied to the cannabis sector, causes many financial institutions and payment processors to classify businesses selling CBD products as high-risk.

The regulatory landscape surrounding CBD products is complex and varies significantly from state to state, adding another layer of risk for payment processors. Additionally, the legal status of CBD products at the federal level is still evolving, leading to uncertainties that make financial institutions cautious.

These factors combined make it challenging for CBD merchants to find payment processing solutions that are willing to work with them, resulting in a high-risk classification for CBD businesses.

Why Doesn’t Stripe Work with High-Risk Merchants?

Due to Stripe’s risk assessment policies and guidelines, their decision to not work with high-risk merchants is primarily based on the industry’s association with regulatory complexities and legal uncertainties. This cautious approach aims to mitigate potential financial and reputational risks for the company.

  • Trustworthiness: Stripe’s priority is to maintain a secure and compliant payment processing environment.
  • Stability: By avoiding high-risk industries, Stripe can focus on supporting more stable markets.
  • Reputation: Working with high-risk merchants could potentially tarnish Stripe’s reputation in the financial industry.
  • Compliance: Ensuring adherence to legal regulations is easier by limiting exposure to high-risk sectors.
  • Risk Management: Minimizing involvement with high-risk merchants helps Stripe control potential losses and fraud risks.

Due to these factors, Stripe focuses its payment platform on businesses with a lower risk value, making it a poor fit for CBD businesses.

Alternatives to Stripe for CBD Merchants

Here’s a short list of payment processors that focus on CBD:

  • Corepay
  • CCBill
  • Verotel

What to Avoid When Looking for Payment Processing

Avoid unreliable providers that may compromise your financial transactions when seeking payment processing solutions for your CBD business. Here are key points to consider:

  • Hidden Fees: Providers that surprise you with hidden fees can quickly eat into your profits.
  • Poor Customer Support: Inadequate customer service can leave you stranded during critical moments.
  • Limited Payment Options: Lack of flexibility in payment methods could turn away potential customers.
  • Inconsistent Payouts: Unpredictable payout schedules may disrupt your cash flow.
  • Lack of Security Measures: Insufficient security measures can put your business and customers at risk of fraud.

Corepay Specializes In CBD

For your CBD business payment processing needs, consider Corepay, our top choice. Corepay provides reliable payment processing solutions tailored for businesses like yours. With Corepay, you can securely accept online payments for your CBD products, ensuring smooth transactions for you and your customers.

Corepay offers competitive rates and excellent customer service to support your business growth. By choosing Corepay, you can streamline your payment processes and focus on expanding your CBD business. Say goodbye to payment processing worries and hello to a seamless experience with Corepay.