If you are in business in 2022, it is crucial to set up an eCommerce platform for your website. It is important to make it as simple as possible for customers so they can complete their orders and leave with a pleasant shopping experience.
This is particularly important for ecommerce spaces like those who want to sell CBD items online. It is important that these companies ensure their online payment processing is secure and easy to use.
You will need to set up payment processing in order to sell your CBD products online. This means that you must be familiar with the process of ecommerce. In a payment transaction, there are five key points of contact.
- A merchant is a person or business that provides goods or services.
- The customer is the one who purchases the goods or services.
- The issuing bank holds the customer’s account.
- The merchant’s account is held by the acquiring bank.
- The payment processor (or payment processing company) is responsible for handling transactions.
A payment gateway is used by the payment processing company to process online payments. This can be compared to a cash register in a brick-and mortar store that accepts electronic payments. Sometimes, the processing company may have its own gateway.
Choices, Choices and Choices
You have decided to sell online. Now you need to select a payment processor. When comparing your options, ask yourself questions such as: How will you accept payments? Which payment option do you believe your customers prefer? How do you see your sales volume?
You will have a better understanding of your requirements for a payment processor and it will be easier to select the right one for you. It is best to choose a vendor who can provide a payment gateway, merchant service, and tools for ecommerce.
To accept credit card payments online, you’ll need a website, an ecommerce platform, a secure gateway to pay your customers, and a merchant account that will deposit the funds. In order to improve their marketing efforts, many companies choose to collect customer data during these exchanges. It can be beneficial to find a payment vendor who can help with every step of the process and data reporting.
Your top priorities should be safety and ease-of-use for your customers. Your site should be able to accept credit cards and also allow users to click on payment options such as Apple Pay or Samsung Pay.
Your site must also adhere to the Payment Industry Data Security Standard. It is important that you work with a company who is knowledgeable in PCI compliance. This is not the only skill to be aware of.
While CBD is legal in many parts of the country for most forms, the Food and Drug Administration still has not defined all rules and regulations. This gray area and other factors make the CBD industry “high-risk.” A seller of CBD could face higher transaction rates, rolling reserve, longer holds on funds, and more complex transactions.
Consider solutions that will help you to minimize the above issues and optimize sales when choosing a processor. This can be achieved by optimizing sales and increasing approval rates, while decreasing fraud and chargebacks.
To accommodate your business volume, you may need multiple merchant accounts with different processing providers. To maximize throughput, you will need to choose a provider that can intelligently move transactions to the right merchant account.
To protect your business and products, you might need additional documentation or verification once you have chosen a processor for a high-risk marketplace.
Do not cut corners or work with inexperienced payment processors to launch an ecommerce venture into the CBD market. The recipe for success is a secure connection and seamless integration.
Learn more about how to grow your CBD ecommerce company. Learn how BigCommerce and our technology partners are able to help you succeed in this rapidly changing space .