Are you selling cannabidiol (CBD) products and looking to get a better understanding of how to grow in a safe, stable way? Or are you planning to start a CBD e-commerce business and want the scoop on what it is and how to sell? If you’re in the first group, this page may not be a huge reveal for you. However, you will still find that we have some solid insights you can benefit from. If you’re in the second group and are new to online CBD, this page should be very useful to you.
Regardless of your experience, please seek appropriate legal advice, from a qualified attorney, before engaging in any regulated activity. This page is for informative purposes only; we are not lawyers. This is not just a disclaimer; it is imperative.
Below, we’ll talk about what cannabidiol is, what product types you can get from it, and why selling any CBD product is considered high-risk. We’ll also touch on our core services, and how we can help you accept payments for cannabidiol products.
Can you sell cannabidiol-based products
The first question we should answer is whether you can sell cannabidiol-based products at all.
The good news is that this question has become a lot clearer and more straightforward to answer than it was before. The Farm Bill was passed and signed at the tail end of 2018. While it’s a rather straightforward bill in many ways, there is one element of it that’s rather groundbreaking – it made a distinction between hemp and marijuana. Just for the sake of clarity, the bill did in no way legalize marijuana. That’s a whole other conversation. However, hemp is defined in the bill as the cannabis plant, with a distinct qualifier: hemp can’t have a THC level above 0.3. This means that with the new legislation, depending on some variables, hemp is basically legal in the United States.
This legalization makes it a lot easier to do research on the medical properties of hemp and the cannabis plant, among other things. Many expect those with blood pressure and chronic pain to benefit from CBD and hemp. The long-term goal will, of course, be to look at clinical trials and how it might improve people’s quality of life down the line.
This is great news for those wanting to sell cannabidiol products for obvious reasons. However, we’d like to add a word of caution here.
Make the necessary precautions
Even though it’s legal to sell certain cannabis products, that doesn’t make it a walk in the park. There are plenty of other CBD products that are still not legal for retail sales. For example, cannabidiol supplements are a no-go, same goes for edibles, and you can’t sell CBD products with a TCH level higher than 0.3. There’s a significant amount of legislation and regulations in place with strict supervision.
Again, before you launch your CBD e-commerce site, you must consult an attorney that specializes in the industry. First, you need a proper set-up to run your CBD business within the applicable legal framework. Then you can feel comfortable going forward to the next step. At that point, what you’ll need to do is make sure your payment processing is properly set up to handle high-risk payments. This is where we come in. We can provide you with a high-risk friendly payment gateway that will work for your product and business type.
The products you can and cannot sell
Since selling CBD products is relatively new, we thought you might benefit from a short overview of various products you can sell vs. what you can’t. Although, you should keep in mind that your payment processor and payment service provider will have terms and conditions on their own. More likely than not, the sale of CBD products is under their prohibited business list. However, we can help you with your credit card processing! We can set you up with a high-risk friendly payment gateway that works for cannabidiol product sales. A short list of products you can sell include:
There are more CBD products you can sell, but we recommend getting in touch with us to be on the safe side. There are fluctuations within this industry. In other words, it’s better to contact us, and we’ll be able to give you a live update. However, we can still give you a quick overview of what you can’t sell:
- CBD edibles
- CBD supplements
Edibles and supplements are under the FDA’s jurisdiction. The FDA has recently approved a cannabinol based pharmaceutical. Therefore, adding the active ingredient in a pharmaceutical to either the food supply or to a non-FDA approved supplement or pseudo-medication is prohibited under current law. This complexity is one of the many reasons we strongly advise contacting an attorney to make sure everything is above board.
What to do and how to sell high-risk CBD products
If you ’re a CBD e-commerce site owner, you’re running a high-risk business. Don’t worry – it’s simply a term credit card networks, and banks use to classify different businesses by looking at various risk elements.
For CBD merchants, the risk element involved is, predominantly, that CBD and hemp products are highly regulated, with many legal restrictions. You’re also likely to experience a relatively high chargeback ratio. These things are quite common for high-risk businesses and are simply part of the terrain. The right merchant service provider can handle the complexities.
However, what this all means is that you, as a high-risk site owner, will need a high-risk merchant account as well as a high-risk friendly payment gateway. Payment gateways and merchant accounts can be a bit of a pain. Even experienced site owners find it difficult to find a high-risk cannabidiol friendly payment gateway that works. Making matters worse, you’ll also want to have a payment gateway that smoothly integrates with your shopping cart and site builder. This is where we come in.
With a payment gateway from us, you’ll be able to accept payments for your legal cannabidiol-based products – no matter what software you use. Simply get in touch with us today, and we’ll start helping you accept credit card payments online. We’re always more than happy to help.
Organic Payment Gateways is here for you
As you can see, there’s plenty that goes into accepting payments for cannabidiol-based products. However, with the right precautions and with a CBD friendly payment gateway, you’ll be able to sell your products successfully online. At Organic Payment Gateways, we love helping site owners who sell CBD products and non-CBD nutritional supplements online. We can set you up with a payment gateway that works both for your CBD products and your e-commerce software. Please don’t hesitate to get in touch with us today.