Square CBD Processing And Alternatives
Last Updated on July 7, 2023 by Corepay
If you own a CBD store, you have likely searched for Square CBD processing. However, until recently, Square did not accept CBD merchants as these types of merchants are deemed high-risk, and Square solely focuses on low-risk.
Key Takeaway: Square’s CBD program is currently in pilot mode. If you run a CBD store, you should choose a high-risk payment processing partner who understands the industry’s ins and outs and can give you a dedicated CBD merchant account.
At Corepay, we specialize in these merchant accounts and know what it takes to maximize approvals, stamp out fraud, and help our partners grow their businesses.
Is A Square CBD Merchant Account Reliable?
Square’s CBD program is still in beta testing, so it is impossible to predict if it is sustainable.
What we know is that the program could end at any point without any heads-up to merchants. Therefore, we recommend that CBD merchants have a backup plan, or another merchant account lined up, so there is no downtime.
If you begin processing with Square or another high-risk processor, be sure that your COAs show that your products have THC at less than .3%.
Are you shopping for a CBD Merchant Account? Apply with us today to find out how we can lower your fees, reduce your chargebacks, and help you grow your business with proven reliable CBD processing.
Square CBD Merchant Account Pricing
The fees seem competitive on the surface for the Square CBD program. With this being said, rates are subject to change as this program is still in beta testing.
Below are the rates:
- Online Purchase: 4.2% and $.30/transaction
- In-person/Store Purchase: 3.9% and $.10/transaction
- Over The Phone: 4.8% and $.15/transaction
At Corepay, we are confident that we can provide you with highly competitive pricing and reliable processing in which you don’t have to worry about a sudden account closure.
Square CBD Solutions
Square offers online processing as well as payment terminals for brick-and-mortar. However, since Square doesn’t primarily focus on CBD, you should proceed cautiously when operating your business.
Accounts can be terminated or frozen overnight, leaving you stuck with no way to access funds for up to 180 days.
Applying For CBD Merchant Account
The process of applying for a CBD merchant account for Square is straightforward. The difference between applying with Square and applying with a high-risk processor is that high-risk underwriting is more in-depth.
When you apply with Corepay, we pre-underwrite your account to speed up the process and ensure you are running a legitimate business. You will need the following when applying:
- Certificate of incorporation
- Voided check/proof of bank accounts, such as a signed bank letter displaying your account/routing numbers
- Organizational chart (if applicable)
- Personal and business financial history
- Prior processing statements (if relevant)
- Compliant website
- Necessary Permits & Licenses for your Online Pharmacy
- Chargebacks under 2%
- Six months of processing history
Alternatives To Square For CBD
We consider ourselves at Corepay to be a terrific alternative to Square CBD processing. We focus on high-risk and understand precisely what it takes to help you navigate the industry.
Can We Use Paypal For CBD?
Paypal is one of the most popular online payment processing options, but they do not process CBD transactions.
Hundreds of Paypal CBD merchant accounts have been closed quickly over the years, leading to much confusion.
Corepay For Your CBD Payment Processing
We are confident that we can grow your business to the next level. With over two decades of high-risk credit card processing experience and knowledge of the CBD industry, we have what it takes to get you approved and ensure you stay approved.
With Corepay, you can expect the following:
- Fast Approvals Within 24-72 Hours, even for high-risk industries
- Exceptional Customer Service, including direct access to Management Team
- Risk mitigation with Rapid Dispute Resolution (RDR) by Verifi, 3-D Secure 2.1/ our partner product CB-ALERT
- Low-risk rates as low as $99 per month and $0.05 per transaction
- Waived fees (application, set up, annual)
- Maximize approval ratios due to routing technology based on your target customer base within our proprietary payment gateway
- Traditional chargeback alerts by Ethoca and Verifi
- High-risk rates as low as a blended 2.95%
If you choose Square for your CBD processing, it could be a fantastic choice. With the being said, there’s no guaruntee that the pilot program will not end abruptly either. If you’re on the fence, we advise you to fill out an application with us to so what we can do for your business.
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