When my partner and I started this business a little over a year ago, one thing we didn’t fully understand was how crazy the credit card processing situation was.

We figured since it was CBD and not marijuana, and it’s being sold everywhere, it shouldn’t be a problem.

Boy were we wrong.

We quickly found out that very few banks wanted to work with us, and if they did, the rates were astronomical.

For example, most brand new cc merchant customers get the base rate of 2.95% with a $.15 transaction fee, or something like that.

Well CBD was considered ‘high risk’, and rightfully so since it was classified as a Schedule 1 Drug.

(calling CBD a ‘drug’ is another conversation all on its own)

So for being a ‘high risk’ account, we were being offered a 6.95% rate with a $.50 per transaction rate… PLUS the privilege of the bank keeping 10% of our gross revenue for 6 months, as a security backup.

Let me repeat that.

6.95%, $.50 transaction fee, 10% gross revenue held for 6 months.

Are you kidding me?

Anyone legit would have to raise their prices by a minimum of $10 just to cover these costs.

It gets better…

The 10% reserve is held for 6 months, and then your account will be re-evaluated by the bank.

Then and only then, at their sole discretion, the bank will decide whether to keep your 10% or give it back.

Which way do you think that was going to go?

It’s also important to know most of the banks that offered this were international banks.

So, when looking at all of this, website sales didn’t look very promising.