So if you own a CBD & cannabis accessory business and you’re looking to start accepting online payments through your website, you may have come across Shopify. They are one of the larger shopping cart software providers that work with ecommerce companies, but there is loads of issues in using them when it comes to taking payments for CBD products or marijuana accessories. There are a few things they don’t openly share with their potential customers regarding the fee structure and the implementation when it comes to these sort of businesses. Here we’ll break down the issues and how to resolve them.
They Use 3rd Party Provider
Cannabis Accessory Merchant Service Accounts
Shopify lacks in transparency for the way in which they allow CBD and accessory companies to accept payments. Often they will accept a company as a merchant but will not reveal all of the facts to the ways in which they will charge and process payments for that business. Shopify uses Stripe as a third party credit and debit card payment processor. This is where they get you. Shopify charges 3% and Stripe charges an additional 2.5% for each transaction, that means your total fee for a single transaction is 5.5% (or even a little more). That is FAR above the industry standards (no matter the type of business). They are also not clear about this when you sign up and start taking sales. You will see in your statements that you’ve paid Shopify, but then you’ll also see additional payments to Stripe. This means that you’re being charged more to simply take payments than when using any other merchant service provider like right here at Brother Processing where rates are at or below the industry standards.
Stripe Canceling Accounts – Shopify Offers No Sympathy
Because Stripe is not comfortable with many CBD or marijuana accessory companies, they have a cap on how many they will work with. But sometimes they will sign you on and then terminate the account with little to no explanation regarding the reason. Shopify then turns around and tells their client they have 5 days to find a new credit card processor or there account will be closed. This means a huge mess and headache for business themselves. Even the fastest merchant service providers will need a few days to review your application, process it, and get it started. Shopify leaves its own clients to scramble to find a solution under the threat of the account being closed. This is another reason that Shopify is not a good option at all when it comes to CBD or marijuana companies.
What Should You Do?
So if you’re in the process of creating an ecommerce website, or you already have on set up, you’ll want to make sure you’re using an easily integratable shopping cart software. Since most websites are designed using WordPress these days you have a simple option that it incredibly simple to integrate. That is WooCommerce. It’s easy and also the most popular shopping cart software on the market for good reason. It’s easy to use and even those with little to know experience can make it work. WooCommerce will work with nearly every single API and virtual terminal system and that means options. Whereas Shopify allows you to use only Stripe (and get those horrible processing rates), WooCommerce allows you the option to choose your merchant service provider. This is where you have greater control and far better margins per transaction in comparison.
Here at Brother Processing we have been involved in the Cannabis and CBD industries from the beginning. From medical to legalization to the CBD boom we’re seeing now, accept credit and debit cards no matter what area of the industry you are in. For the best in Cannabis Accessory Merchant Service Accounts, look no further than leading Canadian merchant provider right here. We are investors in the industry and work with every client on a personal and professional level. We are not a large agency where no one knows your name. Call Stuart today for a free no obligation consultation as to how we here at BrotherProcessing.com can improve your rates, increase your deposit time frames, and integrate your CBD and marijuana business to the web seamlessly.