The Landscape of Credit Card Processing is Always Changing in the Hemp Industry
Hemp Credit Card Processing Is Available
Hemp and other non-psychoactive cannabis products have been unfairly demonized for decades. Hemp fiber, hempseed oil, hemp protein, hemp milk, and other hemp goods are highly popular products that pose zero risk to consumers. However, the classification of cannabis as a Schedule I drug in the United States has limited the hemp merchant account options that are available to legal hemp producers and hemp processors. Hemp businesses hoping to accept credit cards are often required to partner with specialists in high-risk industries just to take any electronic payments at all.
Hemp Payment Processing Is an Evolving Field
The regulations governing hemp sales change frequently, and payment processors are forced to reevaluate their policies about processing credit cards for hemp sellers on a regular basis. Most sellers of hemp products should be prepared for higher-than-average transaction rates due to the elevated risk associated with their industry, and they may also encounter rolling reserves or occasional fund-holds. However, the security and convenience that comes with accepting credit cards may make it worthwhile for most sellers. If you are a hemp vendor who is hoping to open a hemp merchant account, be aware that we will continually update the list below with providers that have signaled that they may be able to serve hemp businesses.
Please keep in mind that hemp processing is an ever-changing landscape at this time, and that major banks have been known to purge hemp merchants from their portfolios en masse and unexpectedly.
Looking for CBD oil payment processing? See our list of the top merchant accounts for CBD.
How to Select the Best Hemp Products Credit Card Processor
If you're running a hemp products business in the USA, selecting the right credit card processor is crucial for the success of your business. We have identified some specific factors to consider when choosing a credit card processor for your hemp products business.
Acceptance of Hemp-Related Businesses
Not all credit card processors are willing to work with hemp-related businesses due to the legal status of hemp at the federal level. Make sure the credit card processor you choose is willing to work with your type of business and has experience working with other hemp businesses.
Compliance with Federal and State Regulations
As a hemp business, you must comply with federal and state regulations. Ensure that the credit card processor you choose is knowledgeable about the regulations and is willing to comply with them.
Credit Card Payment Processing Fees
Credit card processing fees can add up quickly and cut into your profit margins. Compare the fees charged by different credit card processors and choose one that offers reasonable rates.
Ensure that the credit card processor you choose uses the latest security features to protect your customers' sensitive data. Look for processors that are PCI compliant, use encryption, and offer fraud protection.
Top-Class Customer Support
In case you encounter any issues with your credit card processing, having reliable customer support is essential. Choose a credit card processor that offers excellent customer support and is available 24/7.
Integration with Your E-commerce Platform
If you sell hemp products online, ensure that the credit card processor you choose can integrate with your e-commerce platform. This will make it easier to process payments and manage your sales.
Reputation and Reviews
Research the credit card processors you are considering and read reviews from other hemp businesses that have used their services. Choose a processor with a good reputation and positive reviews. You can consider our review on this website, by simply searching for the processor in the search bar at the top of this page.
In summary, when selecting a credit card processor for your hemp products business in the USA, consider the acceptance of hemp-related businesses, compliance with regulations, payment processing fees, security features, customer support, integration with your e-commerce platform, and reputation and reviews.
Top Picks for Merchant Services for Hemp Products
Top Pick for Hemp Merchant Accounts
Currently, PaymentCloud is our top recommendation for talking card payments as a hemp business. As of the writing of this post, PaymentCloud is currently approving hemp merchant accounts, kratom merchant accounts, and CBD merchant accounts for credit card processing. Besides the ability to approve these businesses, PaymentCloud is one of the best-rated processors in the merchant services industry.
Based in Woodland Hills, California, PaymentCloud is a merchant account provider that specializes in serving high-risk business types, including hemp sellers. The company’s products and services include point-of-sale solutions, mobile phone swipers, an online payment gateway and virtual terminal, EMV-compatible terminals, and merchant cash advances.
PaymentCloud provides a dedicated account rep to all new merchants for the life of the account. The company has not received any negative complaints on consumer forums, and it customizes its pricing according to each merchant’s business type and processing history. The BBB does not maintain a profile for PaymentCloud at this time, but CPO gives the company an “A.”
Why PaymentCloud is the Best Choice for Hemp Payment Processing
As the hemp industry continues to grow, more small businesses are beginning to sell hemp products. However, one of the biggest challenges these businesses face is accepting credit card payments for hemp-related transactions. Many payment processors are hesitant to work with hemp-related businesses due to the legal complexities surrounding hemp. Fortunately, PaymentCloud is a payment processing solution that specializes in high-risk businesses, including those in the hemp industry.
Offer Custom Solutions to the Evolving Hemp Industry
PaymentCloud has developed a unique understanding of the hemp industry and the challenges that come with accepting credit card payments for hemp-related transactions. They offer custom solutions that cater specifically to hemp-related businesses, which include fraud and chargeback protection, fast approvals, and competitive rates. PaymentCloud also works with a variety of processing partners, which allows them to offer multiple payment gateways to their customers, ensuring that transactions are processed quickly and efficiently.
Commitment to Customer Service
Another advantage of PaymentCloud is their commitment to customer service. They have a team of dedicated account representatives who are available to assist with any questions or concerns that customers may have. PaymentCloud also offers a user-friendly dashboard that provides businesses with real-time data and analytics, allowing them to make informed decisions about their payment processing.
PaymentCloud is the best choice for small businesses that sell hemp products and need to accept credit card payments. With their industry-specific solutions, competitive rates, and exceptional customer service, PaymentCloud has proven to be a reliable and trustworthy partner for businesses in the hemp industry.
Top Choice for Hemp Credit Card Processing
eMerchantBroker is a Los Angeles, California-based company that offers high-risk e-commerce processing solutions including hemp merchant accounts. The company's products include credit card processing, ACH processing, an online payment gateway, merchant cash advance, and a chargeback management system to help merchants dispute and resolve chargeback claims. eMerchantBroker can only place hemp sellers with a merchant account through an offshore bank.
eMerchantBroker offers custom pricing for each merchant and maintains a low complaint rate relative to its size and merchant portfolio. Our review of eMerchantBroker gives the company an “A” rating overall and the BBB assigns the company a rating of “A+.”
eMerchantBroker: The Ideal Payment Processor for Hemp Products
If you're a business owner in the hemp industry, accepting credit card payments from customers can be a daunting task. This is because banks and payment processors are hesitant to work with businesses in this industry due to legal uncertainties. Fortunately, eMerchantBroker is a credit card processing service that specializes in working with hemp-based businesses. Here are some reasons why eMerchantBroker is a great option for businesses that sell hemp products:
eMerchantBroker has extensive experience in the hemp industry, and they understand the unique challenges that businesses in this industry face. They have worked with numerous hemp-based businesses, and they have developed specialized payment processing solutions to meet the needs of these businesses.
Flexible Payment Processing
eMerchantBroker offers a range of payment processing solutions, including ACH payments, eChecks, and credit card processing. This means that businesses can choose the payment method that works best for them and their customers.
eMerchantBroker offers competitive rates for their payment processing services. They understand that hemp-based businesses often operate on tight margins, and they strive to provide affordable payment processing solutions.
eMerchantBroker has a streamlined approval process, which means that businesses can start accepting credit card payments from customers quickly. This is especially important for businesses in the hemp industry, as they need to be able to process payments efficiently to stay competitive.
In conclusion, make them an ideal partner for businesses that need to accept credit card payments from customers who are buying hemp products.
Host Merchant Services
Host Merchant Services is a Newark, Delaware-based merchant account provider that may be a great fit for a hemp business. The company's products and services include point-of-sale solutions, online marketing tools, an online payment gateway and virtual terminal, mobile credit card processing, and merchant cash advance. Host Merchant Services specializes in e-commerce businesses and provides a free website and email address to interested new merchants. Host dedicates a portion of their website to advertising high-risk payment services to many businesses that fit that category, meaning they could be a great option for many hemp companies.
Host Merchant Services has received only positive feedback on public forums, with most reviewers singling out the company's customer service for praise. Host offers interchange-plus pricing with no early termination fees to all of its merchants, meaning that users will enjoy the most transparent pricing model and can cancel service without penalty. The BBB gives Host an “A+” rating, and CPO also gives the company an “A+.”
Hemp Payment Processing Made Easy with Host Merchant Services
If you're a small business owner who sells hemp products, you're likely aware of the challenges associated with accepting credit card payments. Many payment processors shy away from hemp businesses due to the complex regulatory environment surrounding the industry. However, Host Merchant Services (HMS) is a credit card processing service that caters specifically to businesses like yours.
One of the main benefits of using HMS for hemp payment processing is their expertise in navigating the unique challenges of the industry. They understand the regulations and compliance requirements that hemp businesses must adhere to and can help you set up your payment processing system to stay within those guidelines.
Transparent and Fair Pricing
Another advantage of using HMS for hemp payment processing is their commitment to transparency and fair pricing. Unlike many other payment processors that charge hidden fees and high rates, HMS offers straightforward pricing with no surprises. This can save your business money in the long run and help you avoid unexpected expenses.
Excellent Customer Service
HMS offers excellent customer support to help you through any issues that may arise with your payment processing system. Their team is available 24/7 to answer questions and provide assistance, so you can focus on running your business instead of worrying about payment processing.
Small business owners selling hemp products and need to accept credit card payments, Host Merchant Services is an excellent option. Their expertise in hemp payment processing, transparent pricing, and exceptional customer support make them a top choice for businesses in the industry.
Frequently Asked Questions: Hemp Products Credit Card Processing
Merchant accounts for hemp products are financial services that allow businesses to accept credit card and other electronic payments for transactions related to hemp-derived products. Due to the specific regulations and complexities in the hemp industry, these merchant accounts cater to businesses selling CBD products, hemp oils, hemp-infused products, and other hemp-based items.
The hemp industry has unique challenges due to varying legal regulations and the association with cannabis-related products. As a result, many mainstream payment processors and banks are cautious about serving hemp businesses. Specific hemp-friendly merchant accounts are designed to accommodate the particular needs of these businesses while remaining compliant with applicable laws.
To find the best merchant account for your hemp product business, consider the following steps:
a. Research Hemp-Friendly Processors: Look for payment processors that explicitly state their support for hemp-related businesses. Online research and industry forums can be helpful in identifying suitable options.
b. Check Legal Compliance: Ensure that the merchant account provider complies with all relevant state and federal regulations concerning hemp products. It's crucial to work with a processor that understands and adheres to these laws.
c. Compare Fees and Rates: Assess the processing fees, transaction rates, and any other associated costs of each potential merchant account. Choose a provider with competitive rates that suit your business's size and transaction volume.
d. Review Contract Terms: Carefully read the terms and conditions of the merchant account agreement. Look for hidden fees, contract lengths, and any restrictions that might impact your business operations.
e. Customer Support: Consider the level of customer support provided by the merchant account provider. Responsive and knowledgeable support can make a significant difference in case of issues or inquiries.
Using a regular merchant account for hemp products can be challenging due to the nature of the industry. Many traditional payment processors and banks still consider hemp-related businesses high-risk and may decline to provide services. It's best to work with a specialized hemp-friendly merchant account provider to avoid potential disruptions to your payment processing.
Yes, applying for a hemp merchant account typically involves a specific process. You will need to provide detailed information about your business, including its legal structure, product offerings, website, and processing history, if applicable. The provider may also request documentation related to compliance with hemp regulations and licensing.
The types of hemp products that can be processed may vary between different merchant account providers. Some processors may only support CBD products with THC levels below a certain threshold, while others may be more permissive. It's essential to clarify with the provider beforehand if your specific hemp products are eligible for processing.
While some hemp-friendly merchant account providers may allow international transactions, it depends on their specific terms and the countries involved. Be sure to inquire about the provider's international capabilities and any restrictions related to selling hemp products in other countries.
The time it takes to set up a hemp merchant account can vary. In some cases, it may take just a few days, while in others, it might take a couple of weeks. The process may involve application review, underwriting, and verification procedures, so it's advisable to start the application process well in advance to avoid delays.
As of my last update in September 2021, popular payment gateways like PayPal have been known to have restrictions on processing payments for hemp-related products. However, the policies of such companies may change over time, so it's best to check directly with the payment gateway or explore hemp-specific payment solutions.
Maintain transparent and accurate records of your business operations and sales to demonstrate compliance.
Be prepared to provide any necessary legal documents, licenses, and certificates related to hemp product sales.
Choose a merchant account provider with experience in the hemp industry to ensure a better understanding of your business needs.
Stay informed about changing regulations in the hemp industry to avoid potential compliance issues.
Remember that the hemp industry is subject to legal changes and ongoing developments. Always consult legal professionals or financial advisors with expertise in the hemp industry to ensure you're following the latest guidelines and best practices.