Consider your CBD shop’s most discerning customers.
Whether stopping by to restock their stash or try out a new product, they always take their time to browse your selection, ask questions, and read each item’s label before making a purchasing decision.
This thorough process is exactly how you should shop for a payment processing solution for your CBD store.
In this blog, we’ll explore why you need to be picky about payment processing and how to select an affordable, trustworthy CBD payment processor that goes above and beyond to keep your shop running smoothly and profitably.
Why You Need Specialized Payment Processing for Your CBD Store
Opening a CBD store or adding CBD to your smoke shop’s inventory can help you attract new customers and boost your sales, but there’s a catch: Payment processing providers might label your business as high-risk.
Even though CBD is fully or conditionally legal in all states, it’s still being researched and regulated — which can make some payment processors hesitant to work with businesses that sell it.
That’s where high-risk payment processing comes in. This specialty service allows you to sell products like CBD, delta-8, and kratom hassle-free, giving you the freedom to expand your product offerings and be the first in the neighborhood to carry new, exciting products.
How To Find Payment Processing for Your CBD Store
Your payment processor will handle every sales transaction in your store, which means your choice of provider has a major impact on your operations and customers’ experience.
To help you choose wisely, we’ve outlined five key criteria to consider when evaluating providers. Let’s dive in.
[H3] 1. Cost
While your budget is a key factor in any decision you make for your small business, it’s particularly important when choosing a payment processor for your CBD store.
High-risk processing often comes with higher transaction fees and more robust contract terms, so it’s critical to ask for detailed quotes from each provider you’re evaluating.
Along with comparing transaction fees, here are a few other costs to check on before committing to a provider:
- Cash reserve requirements: Since high-risk payment processing providers often work with business owners who have poor credit or operate in risky industries, many of them require you to keep a cash reserve.
- Volume caps: Some providers may have a limit on the number or value of transactions you can process through their system. These caps might be reset daily, weekly, or monthly depending on your provider.
- Chargeback fees: While payment processors in nearly all industries apply a chargeback fee, high-risk providers might charge a heftier fee in the event of chargebacks.
While the higher costs associated with high-risk CBD payment processing might sound like a downside, keep in mind that your bottom line will still benefit from the addition of new products to your selection.
2. Point of Sale System Integration
Another essential aspect to consider when searching for a CBD payment processing provider is integration with your shop’s point of sale (POS) system.
Your POS and payment processing systems should work hand in hand — and choosing two, separate solutions will lead to clunky checkouts, inaccurate reports, and higher fees.
Relying on a single provider for your POS and payment processing needs ensures you get the best rates on your transactions, streamlines the onboarding process, and allows you to work with one support team who knows and understands your business needs.
Here’s a checklist of must-have features to guide you as you search for a POS and payment processing provider:
- Age verification: Your POS system should prompt cashiers to verify customers’ ages at checkout.
- Inventory management: Your POS system should track your stock levels, notify you when you’re running low on a certain item, and streamline the reordering process.
- Customer loyalty: Your POS system should help you retain customers and offer them special incentives for choosing to shop with you.
- Reporting and analytics: Your POS system should give you insights into your shoppers’ preferences and help you identify areas for growth.
3. Industry Experience
When looking for a POS and payment processor for your CBD store, your best bet is to look for a provider with experience in the smoke shop industry.
An industry-specific payment processor will know the ins and outs of selling everything from CBD to cigarettes, providing expert guidance as you navigate regulations and stay compliant with all tobacco sales laws.
4. Support
Picture your shop’s peak sales hour. Customers are flowing through your door, flagging you down to ask for product recommendations, and tapping their feet as they wait to check out.
If your payment processing system goes offline, it could be a disaster.
In this scenario, your payment processor’s support team makes a huge difference. You should be able to contact a support technician, get your system back up and running, and keep your customers happy.
When evaluating payment processing providers for your CBD store, make sure to ask whether support is included in your contract, whether technicians are available 24/7, and how long it takes to resolve common technical issues.
5. Security
The last consideration on our list is security.
Fraud and data breaches threaten your bottom line, your business’ reputation, and your customers’ sensitive financial information — which is why it’s crucial to choose a security-focused payment processor for your CBD store.
When vetting providers, ask how they plan to protect your store and your customers. Check that they follow best practices, are PCI compliant, and offer automatic updates to ensure that your shop always has the latest security features.
Securing Payment Processing for CBD Through Cigars POS
Ready to take your first steps into the world of high-risk CBD payment processing?
If researching and vetting a long list of providers sounds intimidating, we have good news: Cigars POS checks all the right boxes.
As a fully integrated POS and payment processing solution, Cigars POS has everything you need to expand your shop’s selection, boost your sales and customer satisfaction, and streamline your operations.
Learn more about Cigars POS by scheduling a live demo with one of our CBD experts today.
