EU CBD E-commerce Store Actively Looking for Setup

Dear All,

Apologies if this particular subject has been discussed before (but we haven't been able to find any answers by searching the forums).
We're currently looking for a legit/stable/long-term solution to be able to accept credit card payments for our European CBD E-commerce store.

Our current setup is the following:

• UK LLP (comprised of EU nationals but non-UK residents, currently resident in Asia).
• We currently use a Transferwise account (we've been unable to secure a proper bank account due to our non-UK residences).
• We have also been unable to secure a merchant account for credit card processing (due to a combination of factors, including LLP status/non-UK residents/No UK substance/Transferwise/CBD industry/Low-volume).
• Our clients are 100% based in western Europe.
• Chargebacks would likely be minimal thanks to same-day dispatch & refund policy.

We were thinking of solving this by:

• Incorporating in another EU juridiction.
• Providing minimal substance in that country (in order to get utility bills, etc.)
• Get an actual bank account (no EMI) + the ability to process credit cards.
• Run the business from our Asian residences.

Would any of you have a suggestion as to which jurisdictions would be the most appropriate for this setup?

Thanks a lot for your help!
Sakura

Hi Admin,

Thanks for the prompt response.

Admin said:

You may elaborate on what exactly it is you are doing and which payment processors you already have tried!

Our store sells CBD products formulated for cats & dogs (fully compliant in markets we target, THC-free, non-psychoactive products).

So far, we've tried the following payment processing companies :
- Nochex ** DECLINED, NO REASON GIVEN**
- Quaife **DECLINED - NOT ENOUGH VOLUME**
- PayAlly **DECLINED - NO CBD PRODUCTS ACCEPTED**
- DirectPayNet (Broker) **DECLINED - NO NON-UK RESIDENTS ACCEPTED**
- Quickpay.net /Clearhaus.com **DECLINED - NO REASON GIVEN**
- SQUARE **DECLINED - NO NON-UK RESIDENTS ACCEPTED**
- Cardinity ** DECLINED, NO CBD PRODUCTS ACCEPTED **
- Emerchant brokers **DECLINED, NO REASON GIVEN**
- Securetrading **DECLINED - NO NON-EEA RESIDENTS ACCEPTED**

Admin said:

Did you at any point had any payment processing for your business?

No, we've never accepted credit cards, we're just starting out.

Thanks & regards,
Sakura

Admin said:

So far I can only suggest you to check with Instabill and Durango Merchant Service which may have some high risk payment processors to refer you to.

Thanks for the suggestions.. I'll revert back to you with their decision.

Gediminas said:

minimal economic substance

Thanks for your response. Do you know what the "minimal economic substance" would entail under Dutch Law?

Gediminas said:

This would help to open an account in such a bank such as BUNQ

We'd like to stay away from NeoBanks as our primary account.
Would you happen to know what our chances would be to open an account with a traditional dutch bank ? (ING, ABN AMRO, etc.) as non-resident directors of that NewCo ?

Martin Everson said:

Try EFT Global.

eftglobal.com/
P.S I have not used them before.

Thank you for your response, we'll contact them & let you know how it goes.