How Do You Get a CBD or Cannabis Based Merchant Account

Cannabis.net sat down with new payment solutions processor Vector Payments on why it is so difficlut to get a merchant account for CBD products as well as cannabis products right now...and how they solved that problem!

Why is it so hard to get a merchant account if you are dealing in CBD right now?

There are so many concerns with any product related to the Cannabis family. The Federal stance on the plant itself is the main concern for any bank or financial player in the space. Even for legalized medicine such as pharmaceuticals, there can be challenges getting merchant accounts. Existing online pharmacies currently have very few homes to get a merchant account. Age verification and differing state laws are the fundamental issues, but Vector Payments has homes that can help these merchants in need of card or ACH acceptance.

Does CBD fall under the same restrictions of a marijuana merchant account or a dispensary?

Yes. As it is related to the cannabis plant itself, the same difficulties should be expected when finding a merchant account.

What does Vector Payments do that is different from other merchant account services in the cannabis space?

Our goal is to build longstanding business relationships. No matter the size of your organization, we will be there, working with you, every step of the way. We understand that you have enough to deal with as you are building and growing your organization, so leave the payment side of things to us.

Plus, each of our processing banks are fully aware of the products you are selling. There are no hidden descriptors, nothing dishonest on the application to get an approval, and there are no surprises at all. You will know about everything upfront because we expect the same in return.

You are processing for CBD now, any plans to offer merchant services for actual cannabis flower products?

I’m glad you asked!We have partnered with the only US bank that is accurately processing debit cards for dispensaries on a card present (swiped) level.This solution works great for storefronts, delivery drivers that need wireless units, and with wholesale centers where they require larger transaction sizes.

Furthermore, we are partnering with a few more banks that will allow ACH transactions for ancillary companies looking to accept electronic payments for cannabis related products.

How are other banks outside the USA handling this issue? Is it easier or more difficult to get cannabis or hemp-based merchant accounts outside the USA?

Although you may have more international processors that are willing to “play ball” than you have domestically – the process can still be very complicated. Most offshore processors require you to register or incorporate in their country, which can be very costly and time consuming. It is extremely important that the best payment processor is chosen for full transparency.

What is the one change from the Federal government regarding hemp and cannabis that would help your business the most?

Re-classification of Cannabis from a Schedule One drug is what is really needed in this industry. So many more doors will open for us and for all marijuana dispensaries across the US when this happens which we are hopeful will be in the near future.

Do you have plans to get into vertical niches in these industry, so run processing for ancillary products like vapes and bongs?

Absolutely!We offer card acceptance with a few domestic banks and this is for both card present (swiped) and card not present (keyed) transactions.We can assist any type of business in this industry with either credit/debit card or ACH acceptance to assist their customers.

How would people contact Vector Payments about getting an account open with you?

Customers can go to our website and fill out an inquiry: www.vectorpayments.com and be sure to mention Cannabis.net to receive the discounted pricing. Or, you can always contact us directly at 617-681-0210. (Mention Cannabis.net and recieve a big break on set up fees!!)