How to Minimize the Challenges of Being a High-Risk Merchant

Ever wondered if your CBD business is really making the most of its revenue potential? In this newsletter, we dive into essential info about payment processing and related challenges for CBD merchants like you.

And who are we? We’re Vendo Services. We make payment processing simple, and we've been working with CBD merchants right from the start. We’ve seen their challenges first-hand and provided successful solutions to help increase their revenue.

From higher processing fees and lower transaction acceptance rates (typically 20-25% lower), to reluctance from banks and payment processors, like Stripe and PayPal, to partner with them, high-risk merchants face a number of obstacles to their success. Fortunately, there are a few strategies that are available to help mitigate these challenges.

The term "high-risk" as applied to online merchants refers to a category that includes a broad range of businesses. Any merchant may be considered high-risk for a variety of reasons, including if they:

• are a new merchant
• have a high transaction volume and/or chargeback rates
• fall into an industry that is typically considered as “high-risk” by financial institutions. These industries include subscription-based businesses, online dating sites, adult entertainment, and e-cigarettes, vape, and CBD sellers.

The constantly evolving regulations from credit card companies require high-risk merchants to be vigilant and adaptive , which can mean frequent changes in business operations to maintain compliance. In order to maximize their profits , CBD merchants can use the below strategies.?

• Adhere to credit card company regulations
• Collaborate with a knowledgeable payment processor
• Use alternative payment methods
• Cultivate strong banking relationships

These strategies can help CBD merchants to effectively alleviate the drawbacks of the high-risk designation and foster a more favorable business environment.

Read more about what these strategies entail and how to implement them effectively in this blog .

Ready for Mary Jane - Berlin?

If you're headed to the Mary Jane - Berlin conference this weekend, schedule a meeting with us to learn how Vendo's CBD payment processing services for online sales can help your business. See you in Berlin !

Are you keeping track of these KPIs?

Every online merchant needs to have a handle on certain key performance indicators (KPIs). The following are particularly important for CBD merchants operating in the high-risk space.?

• Revenue: Includes the sum of all transaction types, excluding chargebacks, refunds, and partial refunds.
• Sales: Comprises all new sales in a given period, not considering rebills, cross-sales, upgrades, chargebacks, refunds, and other transaction types.
• Rebills: Represents the total number of recurring charges during a particular day, including upgrades and instant upgrades.
• Chargeback Rate: Reflects the ratio of chargebacks to total transactions. It's important to keep this rate low as a high chargeback rate, often called "friendly fraud," can impact business operations.

Get more information on additional KPIs CBD merchants regularly need to keep tabs on in this blog .

Don’t miss out on our previous newsletter posts , which cover a range of topics surrounding CBD merchant challenges and success stories.

#cbd #paymentprocessing #cannabisindustry #cannabis #germanybusiness Thierry Arrondo Vendo Services