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Best CBD Payment Gateway Canada

Best CBD Payment Gateway Canada

Products derived from CBD oils have been available for several years, but the 2018 Farm Bill’s legalization has overridden the market for CBD products.

Unfortunately, this new kind of product was not welcomed by the payment processing industry. CBD merchants had considerable problems searching for a merchant account to process credit and debit card sales.

Although, in most of Canada, medical marijuana and CBD products are now legal. Most banks and credit card managers are very reluctant to approve commercial accounts for CBD companies, and many of them have suddenly closed their accounts without notice.

This article will update you on the current legal status of CBD products and recommend the best CBD payment gateway in Canada for selling CBD products.

Also, I’ll give you some suggestions on how to pick the best one for your website.

Best CBD Payment Gateway in Canada 2021 — Deciding on a Payment Gateway

You need to know specific vital aspects of deciding on a payment gateway before going into this article in detail.

First of all, you should know that there are two types of gateways: 

  • Redirect
  • Direct

Let’s learn how they process the payment on your E-commerce site.

Redirect: A redirection gateway requires a customer to leave your site to complete the transaction. To process a payment, they are directed to an external page. A customer is usually referred to the company’s gateway management site.

Direct: A direct gateway, on the other hand, handles payments only on your site, and a customer does not need to leave your site to complete a transaction.

Redirection is the most acceptable payment gateway alternative if you don’t want to improve your site’s security. Getting hacked could result in all of your customers’ credit card and personal information being taken.

Customers must leave your site to make a payment. Thus it’s not as professional as direct gateways. 

Customers may be concerned if they are unfamiliar with the type of payment gateway you are employing. For most businesses, direct payment channels are the best option.

What is a Payment Gateway?

A payment gateway is a web-based program that accepts and processes credit and debit card payments. If you want to sell products or services on your website, you’ll almost certainly require a payment gateway.

Top CBD Payment Gateway in Canada

A CBD payment gateway is simply a merchant account that enables you to accept credit card payments and has been approved to sell CBD products by your provider.

Because of the substantially higher risk of CBD products, CBD merchant accounts are almost always more pricey and restrictive than low-risk accounts.

Here is a short overview of four of the industry’s best CBD payment gateway in Canada providers accepting CBD retailers:

1. PaymentCloud

PaymentCloud, a company from California, has supplied high-risk merchant accounts since 2010. 

PaymentCloud

The company has an extremely high success rate when it receives approval from traders for an account and does not charge an entry or setup fee – contrary to most risky providers.

Like most high-risk specialists, the company uses a quote-based pricing system and does not reveal standardized processing rates or account charges. Retail merchants are eligible for each account for the “free” EMV-compliant terminal. 

It means that you are free to use it while maintaining your account, not to keep it if you close your account later or switch to your service provider. In this case, it means free.

PaymentCloud also offers its payment gateway Autorize.Net, although its system is also compatible with other gateways of third parties. It also provides each account with a free virtual terminal.

Note: CBD merchants who market externally applied products, such as oils and lotion, are approved by PaymentCloud. Currently, it is prohibited to ingestible CBD products, like gummies, dog treats, etc.

Pros

  • No fees for application or account setup.
  • Each retail account has a “free” credit card terminal.
  • Customer support for a dedicated account manager.

Cons

  • You may need a CBD merchant offshore account.
  • No online documentation is available.

Link: PaymentCloud

2. Square

One of the best CBD payment gateways in Canada is Square. Square has offered CBD processing services since 2019. 

Square

The processing rates of transactions are significantly higher than the low risk of the company.

Lack of bills is a great option to obtain a traditional high-risk trader account. While it’s still listed on the Square website as “Early Access,” you do not need to register anymore.

Square’s top-rated low-risk services reveal all prices to the company’s website. This openness gives you a reasonably accurate evaluation of the cost of using its services monthly. 

Rates of processing are pretty reasonable but are higher than those charged by low-risk traders:

  • 3.9% + $0.10 per transaction for in-person transactions
  • 4.2% + $0.30 per transaction for online and in-app transactions
  • 4.8% + $0.15 per transaction for keyed-in and card-on-file transactions

Whether or not, these are indeed excellent rates for any risky enterprise, but especially for a CBD industry.

One note of caution: The Square charges a loan and debit card rate that means that you are paying a much higher rate than under an interchange-plus rate plan for PIN debit transactions.

Pros

  • Predictable price for flat rates
  • No fees per month
  • Very reasonably priced hardware processing
  • Suitable for CBD companies with low volume

Cons

  • Problems of account stability
  • Below-average customer support

Link: Square 

3. Easy Pay Direct

Easy Pay Direct has been providing high-risk trading accounts for over 20 years. It accepts CBD merchants now, although startups are not required unless they are well funded or have previous operating experience.

Its proprietary EPD Gateway is the main product of the company. While the processing rate and account fees are payable, you’ll have to be established with a local bank or credit card manager.

Easy Pay Direct

It is also one of the very few companies providing CBD information about pricing on its website. U.S. and Canadian qualifying merchants may receive account approval in about 7-14 days.

While these are volume-based rates, the company’s processing rates begin at 2.50 percent+0.25 USD per transaction, and only the biggest enterprises will qualify.

There is also a $29.99 monthly account fee. You can also expect a standard three-year initial contract to be renewed for one year after that.

Easy Pay Direct contracts have a very positive feature: they have no early canceling fee, even for high-risk companies.

While it’s not quite the same as actual monthly billing, closing your account with no penalty will be much easier if you have to. There is also no minimum monthly.

Pros

  • Accepts CBD traders with ingestible and topical products products
  • No minimum monthly
  • There is no early-end charge.

Cons

  • Application fee possible for $250
  • Automatic renewal clause for three years

Link: Easy Pay Direct

4. SMB Global

SMB Global is a high-risk specialist from a favorite Payline Data provider in 2016. SMB Globally. The company offers commercial accounts to high-risk and offshore companies.

It can approve a merchant account with various back-end processors for almost any risky business, including CBD oil sales.

The company serves mainly eCommerce dealers, choosing from the NMI to Authorize.Net payment gates to over 175 popular online carts.

SMB Global

The company does not provide specific pricing information because it works with many banks and processors to get you approved for an account. 

Tariffs, account fees, and contractual terms vary greatly depending on who handles your account. While we recommend you ask for a plan for interchange-plus prices, be prepared to accept a plan on a tiered basis, especially if you’ve not been in business for a very long time.

You may also expect an automated renewal clause and an early end fee to have a standard three-year contract. It would be best to be prepared as a CBD merchant to include a rolling booking in your account agreement.

It is also dynamic and allows your customers to pay in their local currency or the currency they are billed.

At present, SMB Global seems only to accept CBD merchants via offshore accounts.

Pros

  • Accepts CBD companies via offshore trading accounts
  • Reasonable prices and terms and conditions
  • Excellent service to the customer

Cons

  • Requires a minimum volume for offshore accounts of $50,000 per month
  • There is currently no mobile processing system.
  • No credit card terminal or POS system information is available.

Link: SMB Global

Which Payment Gateway is Best?

The best CBD payment gateway is the one for you and your company. 

I’ve discussed the most practical gateways, but it’s up to you to choose the most important one.

The most popular one is PaymentCloud. Most of the e-commerce sites support PaymentCloud, and it’s the one people trust the most. Perfect choice for dealers who sell up-to-date CBD products and seek customer support.

But nowadays, Square is becoming more and more popular in Canada. For low-volume CBD retailers and startups, this is the most cost-effective option. So, it’s worth giving it a try.

Conclusion

Any of the four providers we’ve mentioned above should be able to provide you with high-quality service at a reasonable price.

I hope this article has clarified your thinking and talk of payment gateways to e-commerce stores in Canada.

Spending your time and money on what you can rely on will be reasonable and excellent.

That’s all we’ve got. I hope this article will help you select the best CBD payment gateway in Canada for your business. Please share with your friends and family to spread the word.

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