Are you thinking about starting an online CBD business? The first thing to do after getting your business idea together and deciding which product to sell would be to set up your payment processor, but with so many options out there, where do you even begin?
This list of the top 10 payment processors for CBD businesses will give you a great place to start researching so that you can get your business off the ground as quickly as possible.
What is an online payment processor?
If you’re looking to accept payments online, you’ll need a payment processor. A payment processor is a third-party service that will process credit card transactions or Bitcoin or PayPal, etc. on your behalf and forward you a certain percentage of each transaction.
It costs money to get started with a payment processor and if you want more features but many people find it worth it, your business will likely see an increase in sales.
If a customer finds shopping with your site easy, they’re much more likely to come back. There are dozens of payment processors out there; we looked at eight of them in our roundup and ranked them based on several factors including pricing, ease of use, and available features.
Why do you need an online payment processor?
If you’re selling CBD products, chances are your potential customers aren’t paying with cash. A quick search of Google will show that there are dozens of online payment processors. But while they all may seem similar at first glance, it’s important to know what makes each one unique and which one is right for your business.
In order to make a wise decision, ask yourself these questions: Do I want a card processor or an e-wallet processor? Will any payments be domestic or international?
What types of online payment systems exist.
There are two types of payment processors. The first is merchant account systems, which process credit and debit card transactions. This is a great solution if you’re looking to sell your products online through your own website or marketplace such as Amazon or eBay.
The second type is an e-commerce platform such as Shopify, which specializes in integrating and managing sales through third-party marketplaces like Etsy and eBay.
How to choose the right e-payment system.
First, you must decide what payments are most important to your business. Do you want to accept all forms of payment? Or do you want to choose a select few and make sure that those payment methods work well with your needs? It’s also wise to think about how customers pay you this will likely be similar to how they would prefer to pay using e-payment systems.
Popular picks and reviews.
Go Payment, Intuit Quick Books Payments, and Square. These are all popular payment processors for CBD businesses. While each company has its own unique features and benefits, we chose to review GoPayment, Intuit QuickBooks Payments, and Square as they were found to be some of the most popular options available to CBD businesses in 2018.
Stripe Best processor if your company is in the United States.
Stripe offers businesses an easy and cost-effective way to take payments online. To create a merchant account, you’ll need to sign up on their website and provide basic information such as your business name, address, and Social Security number.
After that, Stripe will set up a bank account so you can accept credit card payments via your website or mobile app. Note: It may take several days for your account to be approved.
PayPal Pay on time with PayPal.
You can offer PayPal as a payment option to your customers with no monthly fees or setup charges. However, PayPal will charge a fee based on your sales volume and type of product. Since it’s so easy to set up, many people automatically assume that PayPal is free. But it is not even close.
It’s just more hidden than other payment processing options because, unlike many other processors, PayPal requires you to opt-in when setting up an account and often gets buried in fine print at checkout.
While there are no-cost alternatives if you process less than $3 million per year through Paypal, they don’t include any type of fraud protection so you may end up spending money anyway.
WorldPay Best if you need faster processing times
WorldPay is a credit card processor that specializes in high-risk industries, including CBD. WorldPay offers competitive rates and rewards new customers with a $500 start-up bonus. Its processing time is typically less than 24 hours, making it one of the fastest payment processors on our list.