CBD Merchant Account

Highlighted
Excursionist
12 0 4

@JAH5 I just wanted to check in since it's been almost a month since our last chat convo - have you had any further luck when it comes to merchants?

0 Likes
Highlighted
Shopify Partner
52 5 11

Hi,

 

Since mid-December we've been getting merchants approved AND activated within 3 to 7 business days. Never longer.

 

Acceptable products include; legal CBD oils/tinctures, CBD isolate powders, gummies & sport drinks, and CBD-infused topical rubs.

 

RATES & FEES

  • No application fee. No set-up fee. Zero risk.
  • Website/E-commerce & MOTO = 4.95% + $0.25 cents per transaction
  • $45.00 Monthly Fee (includes; payment gateway, AVS verification & customer support)
  • Monthly Minimum Sales Volume Requirement - $100.00 (Not a monthly recurring fee. It is a monthly sales volume requirement).
  • $99.00 - Annual Contract Renewal Fee

All of the information required to sign up is posted on our corporate website.

 

Happy Selling,

Kevin James

Shopify Approved Partner & Expert Developer/Coder

(303) 257-4484

 

Kevin James
Expert Web Developer & Shopify Partner
0 Likes
Highlighted
New Member
2 0 0

The ongoing challenge i'm having with merchant providers is there and tuck and run approach with friendly fraud charge backs.  We determine friendly fraud as customer accepts goods and immediately contacts their credit card company and dispute charges. Their credit card company hears the word cannabis and never evaluates the case further.  In 8 years of selling online i've never actually won a charge back. In each case I've always (as a last ditch effort) offered to pay return shipping on clean used items and refund 100% of the customer's money instead of being out money and products. I'm looking for the eCommerce payment method that doesn't offer charge backs? I'm under the impression that international debit cards, echeck, and money order services like western union may be a temporary safe solution until the cannabis banking sector gets their shit together. my current magneto 2 (money pit) store is newvape.com . Anyone reading this willing to offer advice I'd love to hear it. Is there a western union gateway?  If you analyze  Alibaba payment methods you will notice echeck and WU as options. My problem is that shopify still charges a transaction fees for manual transactions. It appears that ecwid and WU may be my only solution. Here are some of the services we have been tried in the past. square, paypay, ebay, pintrest, quickbooks, chase, bank of america, google shopping, amazon.  We recently implemented a card not present paper sales agreement which the customer must sign and include a copy of his photo ID and credit card and signature. I just received a 3k charge back for a rosin press shipped over Christmas 2019 to Canada.  The signed form has been submitted to our cc company and my fingers are crossed that we might provide them with the ammunition to help us. I can be reached at ed@newvape.com My company makes metal parts only no ejuce no cbd. I'm looking to build a new store and brand www.cannabishardware.com 

0 Likes
Highlighted
Excursionist
25 0 4
@BKay7. Depends what you mean on "luck"... Truthfully I just put this whole thing in the back burner to focus on other matters.. I got to the end of signing my documents just to see there gonna be so many fees. $500 visa and $500 for Master card monthly Gateway fees , transaction fees, Shopify fees , merchant fees , Gateway protal fees, equipment fees , account management fees. Not to mention the inconsistent requirements for app
0 Likes
Highlighted
Excursionist
25 0 4
Also I'm not doing cbd online haven't did anything with cbd since November. It's money pit in my opinion really not Worth the hassle or $1500 plus dollars in case at least
0 Likes
Highlighted
Excursionist
25 0 4
Hey @edwyn

you can try a merchant services the offers charge back protections and e-check services your gonna have to pay them for these additional services. They usually have higher rates and such as well

Also You can try removing key word related to cannabis. So anything like rosin , resin , cannabinoids , canna , cbd , shatter , isolate , would help if removed.

For me i have been using "herbal" to avoid getting "red flagged". I don't know how well this could help you consider what your sites all about..

Another thing you can try is to add disclaimers to your site. I see Alot of smaller store usually have some kind of "sale is final" or something Along those lines..

Hope something here helps
2 Likes
Highlighted
New Member
2 0 0

Thank you @JAH5  charge back protection is a new concept. With respect to e-check processing how vulnerable to charge backs do you think they are? Have you seem them used in shopify stores?

0 Likes
Highlighted

@edwyn I'm going to answer your questions and concerns as best as I can from a processor & acquiring bank perspective, given I personally underwrite CBD and Cannabis accounts. It is important to note though, that what we are comfortable doing is different than other processors and acquiring banks.

 

1. In the US, you should 100% avoid having cannabis or CBD in your domain and preferably in your company name. The industry is unregulated and it causes concern instantly because businesses that have CBD or Cannabis in their name are statistically non-compliant. 

2. Magento is a great platform. Shopify is great too. And has limitations for cannabis. Personally, given the climate today - Jan 2020, if you are doing flower or cannabis you should be cautious about using Shopify. Magento is ok with gateway integrations, WooCommerce will always be the better solution because you own the system and are not renting your website or bound to other T&C, and it works with many gateways.

3. The overall cost of friendly fraud is projected to the top $25 billion in 2020. The total cost of all chargebacks in 2017 was $31 Billion. In 2016, 53% of chargeback cases reported, merchants won the chargeback 41% of the time. So as you can see this problem is too far-reaching and honestly CBD and Cannabis have little to do with the issue. The system is totally broken and it will require massive changes to the Fair Credit Billing Act of 1974 and other chargeback laws to help decrease chargeback fraud. 

 

Chargeback management is difficult and often frustrating. All chargebacks can be traced to one of three sources: criminal fraud, friendly fraud, or merchant error. Bank descriptions can be too generic and reason codes are often misleading. Our team has a solution that has been developed using intelligent source detection -  a blend of patent-pending technologies and expert human forensics that identifies the true source of chargebacks. Telling us which chargebacks we should fight and which ones could have been prevented. This exclusive approach increases win rates, decreases chargebacks and helps

improve your reputation with banks and your customers.  

 

In the meantime, I would be happy to provide you a free analysis of how our services could help you mitigate your loss.

 

4. For higher volume transactions (ie. 3K purchase), ACH or direct deposit will be your best option. Lower fees etc. MU has crazy fees - at least $1000 a month in fees.

 

5.  Statistically speaking, DIY chargeback management like implementing what you have, without professional oversight is not very effective in most cases. While writing having a pre-signed letter is certainly an improvement in Card Not Present, it really comes down to your letter. It's the most important part of the process, the overall system for disputing chargebacks is complicated, hard to understand, and subject to being revised frequently and without notice. Plus, individual parties--banks, card networks, processors--all have different guidelines, which makes successfully disputing a chargeback incredibly complex. As if that's not bad enough, merchants sending wrong, incomplete, or misleading information with the rebuttal letter can actually do more harm than good. 

 

If you want professional help. let me know.

IntegrityPay, Expert Web Developer, High-Risk Processor, CBD Consultant, Merchant Processor, & Shopify Partner
1 Like
Highlighted

Be aware.

 

American Express has added CBD (Hemp and Marijuana Derived) to its prohibited list.

Their documentation online has not yet been updated to display this, however, a representative at the card brand just informed us.

 

So if you have AE option for processing today through Square or alternative programs, hope that you don't experience a chargeback, because the moment you do with AE, you will lose your ability to process with them. Just happened.

 

I would imagine solutions in the United States to start removing AE for CBD processing solutions because they could lose their license by trying to work around with their blue program. If they don't, again, pray for no chargebacks.

IntegrityPay, Expert Web Developer, High-Risk Processor, CBD Consultant, Merchant Processor, & Shopify Partner
1 Like
Highlighted
New Member
3 0 0

I was in the same boat.  I just got approved quickly like in 5 business days after I gave them all they wanted. THe company name and details are below. Their customer service responses are very quick. Please tell them Uday gave you reference. They have  not promised me anything but I just liked how easy and upfront they were to deal with. Go check them out. I am only selling thru my website, ohmlife.guru 

 

AllayPay
274 S University Dr.
Suite B
Plantation, FL 33324
+1 (888) ALLAY-01

0 Likes