Overcoming Payment Processing Challenges in the CBD Industry with BigCommerce

The CBD industry is rapidly expanding, yet it faces significant hurdles in payment processing due to regulatory uncertainties and banking restrictions. 

Many traditional payment processors view CBD transactions as high-risk, leading to higher fees and limited business options. 

As a result, CBD merchants must navigate a complex landscape to ensure seamless transactions while complying with evolving legal requirements.

BigCommerce offers tailored solutions that empower CBD businesses to overcome these challenges. 

Partnering with specialized payment processors, enhancing customer experiences, and maintaining compliance can streamline companies’ payment systems. 

Read Also: Unleashing the Power of BigCommerce for Your CBD Business

Payment Processing Challenges in the CBD Industry

The CBD industry is a significant point of contention among those for and against its promotion and legalization. 

Among its many hurdles is finding the payment processors that want to accept and manage payments for CBD e-commerce stores.

The main payment processing challenges in the CBD industry include:

CBD Carrying A High-Risk Classification

CBD is considered high-risk because of its association with cannabis, which is illegal in many US states and countries. 

This ambiguity creates uncertainty and regulatory issues for financial institutions that potentially process their payments. 

The result? CBD businesses struggle to find reliable and powerful payment processors that avoid this industry because of the reputational and legal risks. 

Jumping Through Various Legal and Regulatory Hurdles

CBD regulations vary significantly across different jurisdictions, leading to inconsistencies and business challenges for stores that sell in certain regions. 

E-commerce transactions need seamless payment processing, which becomes problematic with CBD businesses because there is so much to do to process a payment. 

Higher Processing Fees and Restrictions

High-risk industries such as CBD often face higher processing costs due to the higher risks associated with CBD businesses, such as fraud and potential chargebacks. 

CBD businesses may have limited options for payment gateways. Many traditional gateways are not willing to work with high-risk industries, forcing CBD companies to seek specialized solutions.

How BigCommerce Is A Game-Changer For CBD E-commerce

The BigCommerce platform is ideal for CBD businesses, thanks to its various features designed for this challenging industry. 

The main benefits of BigCommerce for CBD e-commerce include:

High-Risk Industry Support:

• BigCommerce partners with many payment gateways, including those specializing in high-risk industries like CBD. This payment gateway flexibility ensures smooth and secure transactions.   
• BigCommerce compliance assistance provides tools and resources to help CBD businesses comply with complex regulations, reducing the risk of legal issues.

Robust E-commerce Features:

• BigCommerce offers an intuitive interface that allows stores to easily create and manage online stores without extensive technical knowledge.   
• Advanced marketing tools help use SEO optimization, email marketing, and social media integration to attract and engage customers.   
• Inventory management tools help track and manage your CBD product inventory efficiently, ensuring accurate stock levels and timely order fulfillment.   

Scalability and Performance:

• BigCommerce’s high-performance hosting and robust infrastructure ensure your store can handle increased traffic and sales as your business grows.   
• Whether you’re a small startup or a large enterprise, BigCommerce offers flexible plans to accommodate your specific needs.   

Security and Trust:

• The BigCommerce infrastructure follows strict PCI DSS standards to protect sensitive customer data.   
• BigCommerce uses a secure checkout experience to build customer trust and encourage repeat purchases.   

Global Reach:

• Multilingual and multi-currency Support helps expand your market reach by selling your CBD products to customers worldwide.
• The store can easily configure shipping rates and options for international orders.

Setting Up Payment Gateways With BigCommerce

As we discussed earlier, picking the right payment gateway is essential for a CBD commerce store looking to capitalize on exponential growth. 

This section explains how CBD e-commerce businesses can use BigCommerce to solve their payment gateway process. 

Picking The Right Payment Processor

When picking your preferred payment processor, use this checklist to vet whether it’s the right one for you:

• It must have high-risk industry support and be comfortable working with the CBD industry.
• The payment processor must adhere to PCI DSS security standards that protect sensitive customer data.
• The processor should support multiple currencies and payment methods if you plan to sell CBD products internationally.
• Consider looking for processors with reasonable transaction fees and minimal setup costs.
• You want a responsive support team that can be invaluable in resolving payment issues.

Integrating Payment Gateways with BigCommerce

BigCommerce is the best e-commerce platform for CBD stores and can integrate the right payment gateway. 

Here’s the step-by-step process to do so:

• Choose a suitable payment gateway from BigCommerce’s supported options.
• Obtain API Credentials (API key, secret key, etc.) from your payment processor.
• In your BigCommerce store’s settings, configure payment settings, navigate to the “Payments” section, and add your chosen payment gateway.
• Enter API Credentials obtained from your payment processor.
• Conduct test transactions to ensure everything is working correctly.
• Go Live once you’re confident in the setup, and switch your store to live mode.

Improving the Customer Checkout Experience

A seamless checkout process is crucial to reducing cart abandonment and increasing conversions. 

Here are some best practices:

• Keep it simple and minimize the number of steps in the checkout process.
• Offer multiple payment options to cater to different customer preferences.
• Clear and concise language to explain fees, taxes, and shipping costs.
• Allow customers to checkout as guests without creating an account.
• Use SSL certificates to encrypt sensitive customer data.
• Ensure your checkout process is optimized for mobile devices.
• Optimize your website’s speed to reduce loading times and improve the overall checkout experience.

Improving Payment Processing Security and Trust

Using BigCommerce Security Features 

Part of BigCommerce’s appeal lies in its security features that help build customer trust, the main including:

• BigCommerce adheres to the Payment Card Industry Data Security Standard (PCI DSS) to ensure the store meets the highest security standards.
• BigCommerce automatically provides SSL certificates to encrypt the data transmitted between the store and customers’ browsers. This helps prevent data breaches and protects sensitive information.
• BigCommerce offers built-in fraud prevention tools, such as address verification and card security code checks, to minimize the risk of fraudulent transactions.

Customer Education 

Building trust with your customers is essential for a successful online business. Here are some tips to educate your customers about payment safety:

• Clearly communicate your security policies on your website, highlighting the measures you take to protect customer data.
• Display trusted payment badges on your website, such as Visa, Mastercard, and PayPal, to reassure customers that their payments are secure.
• Use strong passwords, enable two-factor authentication, and avoid sharing sensitive information over public Wi-Fi.
• Keep your store and payment gateway software up-to-date with the latest security patches.
• rovide tips and advice to your customers on how to protect themselves from online fraud, such as avoiding phishing scams and using strong passwords.

Read Also: BigCommerce CBD Success: Strategies for a Lucrative Online Store

Conclusion

Navigating the payment processing landscape in the CBD industry presents unique challenges due to regulatory complexities and these businesses’ high-risk designation. 

BigCommerce offers tailored solutions that empower CBD merchants to overcome these obstacles, ensuring secure transactions while maintaining compliance with evolving laws. 

By leveraging specialized payment processors, businesses can enhance their operational efficiency and provide customers with a seamless purchasing experience.

Ultimately, success in the CBD market hinges on selecting the right payment processing partner. 

CBD businesses can mitigate risks and thrive in a competitive environment by focusing on security, compliance, and customer satisfaction. 

Embracing innovative payment solutions will position these companies for growth and long-term sustainability in an ever-changing industry landscape.

See Also: Grow Your BigCommerce CBD Store With Folio3