As a result of new areas of research in the medical field, there has been an increased number of reports claiming some health benefits of using CBD oil. As a result of this, the demand for CBD oil has increased drastically, but the risks and difficulties involved in selling the product online have not become easier. Due to the fact that CBD oil is illegal in many states of the USA and only a number of approved merchants can sell the product, banks and payment gateways in the USA are wary when it comes to providing payment gateways due to the laws surrounding CBD and the risks involved. It is important for a CBD oil trading business to find a payment gateway and merchant account solution for their online shop that approves of the sale of CBD but this is difficult, meaning merchants try to find loopholes instead of going to legitimate merchant account providers like thesoutherninstitute.com/cbd-oil-mexico-merchant-account/.
Many shops have tried to hide the CBD that they are selling online by selling it among other smoking-related produced such as e-cigarettes, pipes and smoking papers. If a CD8 sale is discovered by a bank or the government without state approval then the shop will instantly be closed down, losing money for the seller and making it impossible for them to trade unless they try again through a new shop/online website and trading details. Due to the fact that selling CDB is illegal, banks and mainstream payment gateways will not accept the trade of the product, and therefore will not accept requests from merchants who are selling CBD.
Certain recipes of CBD oil are legal in the USA when sold by approved merchants meaning that it is legal for banks to offer payment gateways to the legally abiding shops. However, due to the effect that supporting cannabis can have upon a banks reputation many of the large names such as JP Morgan have refused to have any association with the sale of CBD oil. This forces merchants to operate using cash only methods, such as unsecured bank transfers and cash only payments in physical stores. The cash only businesses are at high risk of theft due to the fact that cash is stored on the premises and that employees might have negative intentions increasing the risk of robberies and violence. This is not the only issue merchants can face when it comes to the lack of options for payment gateways, but the gap in the market has been exploited by companies who are offering payment gateways for extortionate fee’s and strict terms and conditions, because they know that merchants are becoming desperate to have access to
secure payments for this business. As a customer this means that a payment might not feel as secure as one that is being provided by an internationally renowned bank with extortionate payment security, putting customers at risk of fraud.
Whilst there are around 300 banks in the USA that offer gateway payment services, there are risks attached due to laws and regulations, the dangerous nature of the industry and the associated risks for a customer of paying through a CBD oil payment gateway. Even though there is strong pressure from merchants on the banks to understand why they should support the CBD oil industry, it is a discussion that does not seem to be progressing.