T1 Payments sees massive growth in CBD processing in Canada, United Kingdom (UK), New Zealand, and Australia
T1 Payments, a leader in high-risk merchant processing, today announced longstanding customer relationships with leading cannabidiol (CBD) merchants Herbstrong, Sabaidee and ThoughtCloud. As global consumer demand for CBD grows exponentially, T1 Payments cautions merchants on the significant lack of providers who have the expertise to handle e-commerce processing abroad due to the stringent regulations.
According to a recent report, U.S. consumer sales of CBD will reach around 1.8 billion U.S. dollars by 2022, a significant increase from around half a billion U.S. dollars in 2018. Demand is growing exponentially abroad as well. According to T1 Payments customer portfolio, CBD sales have increased 33.2% year-over-year in the following regions:
- Canada: 12%
- UK: 11.4%
- New Zealand: 6.2%
- Australia: 3.6%
"As global demand for CBD continues to grow, selling it can be a profitable business venture, and we are seeing a rapid influx of new and existing CBD merchants looking to grow their e-commerce capabilities," said Donald Kasdon, founder of T1 Payments. "However, selling CBD products online can be a massive financial disaster for businesses not working with a merchant services provider who understands all the regulatory issues facing the industry and how these issues differ from region to region."
CBD e-commerce is considered a high-risk business, which complicates the process of getting paid for online sales. Because of this, CBD merchants that do business online may find it difficult to find a payment processor who will work with them. It is also not uncommon for processors to suddenly close high-risk accounts without any notice, leaving these merchants unable to process credit cards. Additionally, CBD and hemp products come with several compliance issues, which are only compounded when trying to sell globally.
T1 Payments was the first provider of e-commerce processing in the CBD space and has been successfully processing payments for CBD products for more than five years. Not only does the company have an entire department dedicated to compliance, but it also has proprietary tools to ensure merchants selling CBD online stay within the guidelines set forth by U.S. and worldwide regulators. Merchants that work with T1 Payments experience the following benefits:
- Hassle-free integration with more than 175 e-commerce shopping carts
- Ability to collect payments in over 169 currencies
- Uniform compliance to prevent fines and violations globally
- Protection from chargebacks to maintain good standing with card networks and ensure merchant account longevity
- Ability to sell vape and CBD hemp products on the same website with no need for separate merchant accounts
"As we look to sell our products globally, seizures from customs agencies outside the U.S. are a big challenge, because many require a special partnership within their country," said Cathy Sweetman, chief operating officer, Herbstrong. "As regulations around the world change, T1 Payments is at the forefront to help guide us. Not only do they help us process our payments legally and stress free, but their customer service team also goes above and beyond to make sure we feel informed and protected."
"Keeping up with the laws and regulations for shipping to various locales and dealing with customs agencies is extremely challenging in the CBD industry," said Alon Shabo, founder, SabaiDee. "We chose to work with T1 Payments because we wanted an international partner with a strong history and reputation in our industry to make us feel secure while operating globally."
"T1 Payments support has been paramount to our company's global growth," said Leo Pena, president, ThoughtCloud. "The platform makes it easy for us to process transactions with localized currencies, which dramatically lower shopping cart abandonment, reduce refunds and chargebacks and lower card decline rates."
Get in touch with T1 Payments today to start growing online sales for your CBD business.
More about T1 Payments:
T1 Payments is a high-risk merchant processing company that is flexible, transparent, and scalable. T1 Payments' secure gateway and integrated shopping cart solutions are compliant with all Payment Card Industry Data Security Standards (PCI DSS).
In addition to high-risk merchant processing services, T1 Payments stays involved in the community through its ongoing donations and sponsorships. To learn more about the nonprofits T1 Payments supports, visit T1 Payments Community Involvement page on their website.
For more information, please visit the T1 Payments website or call 1-866-518-2216.
View source version on businesswire.com: https://www.businesswire.com/news/home/20201021005194/en/
Contacts:
Andrew Petro
Matter on behalf of T1 Payments
(518) 569-2011
apetro@matternow.com
