CBD products are everywhere! So much so that they cannot be avoided anymore. From CBD gummy bears and other edibles to CBD infused moisturizers and creams, products made with CBD are making their way into the mainstream market. With numerous companies and brands selling CBD online, it is impossible to downplay the impact that CBD is having on the world. This is in part as a result of the numerous pieces of legislations that have been passed over the years. The most notable among these is the 2018 Farm Bill, which saw the US Government legalize industrial helm plants. This transformed the CBD market from a trickle worth $620 million in 2018 to an estimated $23.7 billion by 2023.
When you combine so much capital inflow in the industry with seemingly still opaque laws surrounding CBD, one does wonder, how exactly can you make use of the financial systems without running afoul of the law?
Deciding on the right payment processor when selling CBD online
Setting up a bank account for your online CBD business is a lot more cumbersome than setting up one for any other online business. However, that does not mean it is not possible. There are a few options that enable you to create a bank account for your CBD brand, but they all depend on you following existing laws and trading legally.
That being said, not every bank will be willing to have a brand selling CBD open a bank account with them. This is simply down to the fact that CBD has extremely close connections to cannabis, and for these banks, the links are just too close for comfort. Most of them believe that CBD is a high-risk ingredient, even though CBD products are being utilized more in the medical and health niche. There are still some banks that are willing to take the chance of providing banking services to CBD brands though.
To create a bank account for your online CBD business, it is important to ensure that whichever bank you open an account with is fully regulated and up to date with banking regulations. The process of opening a bank account for your CBD business is as follows:
Find the Right Bank for You
This doesn’t just mean finding a bank that services online CBD vendors. It also means finding out about the fees involved in having an account with them and making sure that this works with your projected profit margins.
Select the Best Account Type for Your Business
Since you are a business selling CBD online, it would make more sense to get an online checking account. These are offered by numerous banks, but you need to make sure this bank allows business accounts for CBD merchants.
Ensure That You Have the Necessary Documentation
When you apply for your bank account, you have to have documentation showing that you are indeed the type of business you say you are, your tax number, business name certificate, license and any other document that enables you to sell CBD online.
These are just the first steps to help you open a dependable business account for your CBD online business. You’ll also want to make sure you do adequate research on the best bank for you and make sure you get good terms for your CBD business loan, although these are often not offered by many banks. Otherwise, you may want to look elsewhere for your banking needs.