SoarPay Offers eCheck Processing For Hemp & CBD Oil Businesses.
- Instant Online Quote. When you submit your application, you’ll get an instant price quote to DocuSign. No offline paperwork, no faxes, no waiting.
- Industry Minimum Pricing. You will automatically receive Industry Minimum Pricing in your online quote. No more frustrating haggling with sales reps.
- USA-Based Customer Support. When you call or email, you’ll always speak to our friendly support team, based in Houston, TX.
Hemp & CBD Oil Payment Processing
Why CBD Businesses Are Considered “High Risk”
Many credit card processors, and other payments companies, do not accept CBD-related businesses for several reasons…
- CBD oil, because of its association with hemp and THC, has a complicated and fast-shifting legal framework in the United States. As a result, for a sponsor bank to support the industry they must understand and keep a dedicated eye on it. Many banks and processors are unwilling to do so.
- Because CBD Oil is relatively new, there are differing levels of quality in CBD based products, posing additional chargeback risk to the credit card processors, and risks to providers of other payment methods.
- Finally, CBD oils, creams and related products are simply new products. Because of this, many sponsor banks, credit card processors, and payments companies, simply have not changed their underwriting rules to reflect these new products.
Soar Payments, by contrast, is proud to serve the hemp & CBD oil industry with eCheck processing. Our extensive relationships with processors and sponsor banks who specialize in underwriting businesses that may be perceived as “high risk” enables us to confidently support hemp based CBD related businesses. Moreover, we are experienced with the application and underwriting challenges that CBD businesses often face, and can help assist to make the approval and setup process easy.
Questions? Call Our Team: 1 (888) 225-9405
Frequently Asked Questions
Why does SoarPay only offer CBD eCheck processing at this time? Why can’t I get approved for a CBD credit card processing account as well?
Unfortunately, though CBD is legal to sell, there are still regulatory questions around the entire industry given that CBD is often ingested. This regulatory uncertainty has made it so that sponsor banks are unwilling to underwrite CBD businesses for credit card processing.
Furthermore, there have been incidents of businesses selling CBD using merchant accounts to sell products with THC much higher than the 0.3% rate as required by the federal government for sale. These “bad actors” have forced the entire credit card processing industry to pause or severely restrict support at this time.
eCheck remains a viable payment alternative, as underwriting banks are more comfortable with the lower risk elements of eCheck processing. Furthermore, eCheck processing is not affected by the decisions of card issuers (VISA, MasterCard, AmEx, Discover).
If you have any further questions, or need further clarification, please call us for full details.
I see other CBD businesses accepting credit cards, why can’t I get set up?
A small number of CBD businesses have been able to find unique processing options due to pre-existing partnerships, trial partnerships, and their sales volume (usually north of $500,000 per month). Other CBD businesses accepting credit cards may have processors who are uninformed about what is actually being sold, or they are utilizing offshore credit card processing options.
Aside from these rare exceptions, currently there are no widespread credit card processing options available for the CBD industry, especially for newer businesses or those with lower sales volume.
What is eCheck processing, and is it the same thing as ACH processing?
An eCheck (or electronic check) is an electronic version of a paper check used to make payments online. Anyone with a checking account can pay by eCheck.
To make a payment with an eCheck, customers simply provide their bank routing number, account number, and name on their bank account in a secure online portal. From there, a check is generated and sent to the merchant’s bank, where the funds are deposited.
eCheck is slightly different than ACH, as the funds are not directly wired between accounts. Put another way, ACH, or Automated Clearing House, refers to the process used to move money electronically between bank accounts. An eCheck is an abbreviation of the term “electronic check,” and is a payment method.
How Does The Application Process Work?
Step 1. Apply Online
Complete the online application process (it takes 5 minutes). Click here to begin.
Step 2. Get An Instant Quote
You’ll instantly receive a quote with Industry Minimum Pricing to DocuSign.
Step 3. Start Accepting Payments
Our Houston based Customer Support Team will help you get set up, fast and easily.
Our friendly Customer Support Team is standing by to approve your application:
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