There have been some hiccups in the CBD industry over the last few months and one speed bump that is looming before most Cannabidiol merchants is that they're getting dropped by Elavon. They came on the CBD scene in the fall last year and everything was great. Transaction fees were down, costs were down. For some undisclosed reason they dropped all of their CBD accounts effective May 15. This has led many to have to find a new processor, and oftentimes having to set up and offshore corporation and process in the European Union. It sounds complicated, and it's expensive. We're currently affected by this and after Wednesday we may temporarily not have a payment processor
All of these processors fall into the high risk processing category, and because of this, their rates are much higher (5-8%) per transaction. This will cause some CBD stores to close their doors or raise their prices because the cost of doing business is increasing.
What does this mean for Peyt's Promise?
We may be unable to accept credit cards for a very short period of time but we will continue to accept other forms of payment. We currently have Paypal, Venmo, Facebook Pay, Cash App and can accept check, money order, and/or will barter if necessary. We're currently are in talks with two different processors and it's possible that we'll have two different payment processors when it's all said and done.
eCheck is an option but we are not planning on adding this feature as it will incur additional cost that I feel will be underutilized.
What does this mean for our customers?
This hiccup may require you to use a different method of payment in the short term but we hope within the next week or two to be able to accept credit cards once again. We'll still provide exceptional service and beat any authorized dealers prices.
The banking aspect, specifically the payment processing part of running a CBD business is changing. It requires one to persist and adapt in order to survive. Peyt's Promise will weather this storm and at the same time, continue to provide you with amazing service.