If you need a merchant account for your CBD or hemp business, one thing that you will realize is that most credit card processors and banks will refuse to give you one. We know that it is a hurdle for businesses who sell hemp, CBD edibles, and cannabis oil, and various other items in the legal marijuana industry.
However, don’t worry as we can cover you.
What will bank ask you when applying for a checking account for your CBD business?
If you are opening a business checking account, the business banker is required to ask you at least 22 questions about your business. It starts with your business legal entity, the services or products sold and your target customers. If they feel you are doing CBD related business, they will even ask more questions about how your CBD products are produced and how much THC your CBD products will contain.
With those 22 questions, the bank will be able to determine your business qualification.
Why most banks and credit unions will bot approve a business checking account for merchants that sell CBD or Hemp products?
There are several reasons why credit unions and banks will not approve a business checking account for merchants that sell CBD or Hemp products, such as:
- Banks and credit unions still worry about landing in trouble with the local and federal law for rendering financial services to businesses in the CBD industry
- Banks and credit unions also do not want to put in the extra resources required to make it legal
- The association of CBD with marijuana is enough to scare off most banks
- The business owner or partner has a criminal history or felony background.
What if a merchant when applying for a bank account does not disclose to the bank that they are selling CBD or Hemp products?
If you do not disclose that you are in the business of selling CBD or Hemp products when you open your business checking account with a bank and the bank finds out later, they are likely to close your account. The bank may state they are closing your bank account as it is in the best interest of the bank due to higher risk associated with a “marijuana-related business“.
Even though hemp is not marijuana per se, banks still like to play it safe. Although 100 percent legal, most banks, credit unions, and processors don’t board businesses in this industry because of how CBD is cultivated.
What are the effects to a CBD or Hemp merchant having their bank account shut down in 30 Days or in a few months?
- You will not be able to receive money from your merchant account.
- You will not be able to write a check to your vendor or supplier.
- You will not be able to wire or pay the bill with your closed bank account.
- You will have a history with the bank, which will prevent you from opening with the bank using the same tax ID/EIN, even after you change your business name.
In other words, you will not be able to make money and operate your business for a while.
As you may know, the business banker will get a bonus or credit for opening a new account for a business to meet their monthly quota. So even the bank doesn’t allow CBD business, the business banker may still open an account for you. Well. The bank will then write you a letter telling you that your account will is closed due to undisclosed reasons.
It has happened to many of our CBD merchants. One of the merchants we helped getting their CBD merchant account approved ends up losing revenue because their bank account is closed by Wells Fargo, Chase, and Bank Of American multiple times.
Fortunately, we were able to help them acquire a new FDIC insured bank account and start receiving money from their CBD merchant account in a few days.
We can help you get a USA domestic FDIC insured business bank account!
With many years offering CBD business a solid merchant account, CBD Payment Solutions have built a trusted relationship with a few domestic banks that are willing to help out business opening a checking account and start accepting money from their CBD and Hemp-based trade.
When you apply your CBD merchant account or switch to our CBD credit card processing and payment solutions, we can also help you establish a bank account for your CBD business. We work directly with the top executive of the banks to provide the best possible business checking account that other banks can’t offer.
If you are looking to open a CBD and hemp business checking account, CBD Payment Solutions is your best bet. CBD Payment Solutions is a friendly and efficient payment solution provider and can get your business set up with a CBD/Hemp checking account with an FDIC Member Bank in all 50 states. It is an ideal payment solution for high-risk businesses, like CBD and Hemp.
CBD Payment Solutions is your best option to get a CBD and Hemp business checking account and payment processing for the following reasons:
- Competitive rates
- No application fees
- Secure payment gateway
- Efficient and timely approvals
CBD Payment Solutions can also provide your business with the ability to process credit card payments securely with retail, eComm, or MOTO merchant account.