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7 Best CBD Merchant Accounts In 2024

CBD merchant accounts have higher prices and more restrictive policies than low-risk accounts. Good options include PaymentCloud and PayKings.

    Frank Kehl
  • Last updated onUpdated

  • Chris Motola
  • REVIEWED BY

    Chris Motola

    Senior Staff Writer

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

The CBD industry has grown tremendously since the 2018 Farm Bill legalized hemp-derived products. However, CBD merchants continue to face significant challenges in finding a credit card processor that will accept their business. As a whole, the payment processing industry has been unwelcoming to this new class of products, primarily due to the complexity of local and state laws regulating the sale and distribution of CBD products.

Almost all states now allow you to purchase or distribute hemp-derived CBD products that contain less than 0.3% THC, but each state imposes specific legal requirements.

Despite the legalization of medical marijuana and CBD products in most US states, many traditional banks and credit card processors continue to disallow CBD businesses for merchant accounts. However, providers that accept high-risk merchants are now far more willing to approve CBD businesses than they were just a few years ago.

Let’s review the best merchant account providers that accept CBD businesses and discuss the legal and financial challenges that make it difficult for CBD businesses to obtain a merchant account.

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  • Best for dedicated account manager for customer support
  • Variable monthly fees
  • Variable processing rates (typically 2.95%-5.0%)
  • Best for dedicated account manager for customer support
  • Variable monthly fees
  • Variable processing rates (typically 2.95%-5.0%)

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  • Best choice for merchants who want to use Clover terminals
  • Variable monthly fee
  • Variable processing rates
  • Best choice for merchants who want to use Clover terminals
  • Variable monthly fee
  • Variable processing rates

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  • Most affordable choice for low-volume CBD merchants and startups
  • No monthly fee
  • 3.5% + $0.10 to 4.4% + $0.15/transaction
  • Most affordable choice for low-volume CBD merchants and startups
  • No monthly fee
  • 3.5% + $0.10 to 4.4% + $0.15/transaction

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  • Best for mail-order/telephone order businesses
  • Variable monthly account fees
  • Variable processing rates starting at 2.95%
  • Best for mail-order/telephone order businesses
  • Variable monthly account fees
  • Variable processing rates starting at 2.95%

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  • Best for merchants looking for transparent pricing and a domestic merchant account
  • $29.99 monthly fee
  • 2.50% + $0.25/transaction (low-volume businesses will pay more)
  • Best for merchants looking for transparent pricing and a domestic merchant account
  • $29.99 monthly fee
  • 2.50% + $0.25/transaction (low-volume businesses will pay more)

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  • Best for merchants looking for interchange-plus pricing
  • Variable monthly fee
  • Rates as low as 2.49% (tiered pricing) or interchange + 1.0% (interchange-plus pricing)
  • Best for merchants looking for interchange-plus pricing
  • Variable monthly fee
  • Rates as low as 2.49% (tiered pricing) or interchange + 1.0% (interchange-plus pricing)

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  • Best choice for high-volume CBD merchants
  • Variable monthly fee
  • Variable processing rates & rate plans
  • Best choice for high-volume CBD merchants
  • Variable monthly fee
  • Variable processing rates & rate plans

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Table of Contents

The 7 Best CBD Merchant Services Providers

Due to the inherently higher risk associated with CBD products, CBD merchant accounts inevitably come with higher prices and more restrictive policies than low-risk accounts. Here are brief overviews of the seven best merchant account providers in the industry that accept CBD merchants:

  • PaymentCloud: Best For Dedicated Account Manager For Customer Support
  • National Processing: Best For Clover Hardware
  • Square: Best For Low-Volume CBD Merchants & Startups
  • Corepay: Best For Mail-Order/Telephone Order-Only Accounts
  • Easy Pay Direct: Best For Transparent Pricing & A Domestic Merchant Account
  • PayKings: Best For Interchange-Plus Pricing
  • SMB Global: Best For High-Volume CBD Merchants

How The Best CBD Payment Processors Compare

Processor Application/Setup Fees Monthly Account Fee Credit Card Processing Rate Plan(s) Offers ACH Processing?
PaymentCloud None Variable Not Disclosed
National Processing Not Disclosed $9.95-$19.00+ Flat-Rate
Square None None Flat-Rate
Corepay None Variable Not Disclosed
Easy Pay Direct $99 $29.99 Interchange-plus or tiered
PayKings None Variable Interchange-plus or tiered
SMB Global Not disclosed Variable Not Disclosed

PaymentCloud: Best For Dedicated Account Manager For Customer Support

Total Rating 4.1
Fees & Rates4.3

Products & Services5.0

Contract2.8

Sales & Advertising Transparency3.9

Customer Service4.2

User Reviews4.0



Exclusive Promo: PaymentCloud will give you $200 if they can't beat your current rate. Get Your Quote

Pros

  • No application or account setup fees
  • “Free” credit card terminal with each retail account
  • Dedicated account manager for customer support

Cons

  • No pricing disclosures on website

Why PaymentCloud Is The Best Choice For Personalized Customer Service

PaymentCloud has been providing high-risk merchant accounts since 2010 and accepts CBD businesses as well. The company supports sales of a variety of CBD product categories, including topical and ingestible products, CBD-infused drinks, and pet products.

As with most high-risk specialists, PaymentCloud utilizes a quote-based pricing system and doesn’t disclose any standardized processing rates or account fees. Retail merchants may be eligible for a “free” EMV-compliant terminal with each account. In this case, “free” means you can use it for as long as you maintain your account, not that you can keep it even if you later close your account or switch providers.

PaymentCloud offers online merchants a choice of several popular payment gateways, although its system can also be integrated with other third-party gateways. Additionally, it provides a free virtual terminal with each account.

Customer service is a particularly strong point of PaymentCloud. Not only is this handled in-house, but the company assigns a dedicated account representative to each new merchant, giving you a single point of contact when you need help or encounter a problem.

PaymentCloud Features

PaymentCloud offers a full range of products and services, including the following:

  • High-risk merchant accounts for CBD businesses
  • Full support for retail and online sales
  • A wide range of mobile card readers, terminals, and POS systems are available
  • Choice of Authorize.Net, NMI, and USAePay payment gateways
  • Virtual terminal included with every account
  • eCheck and ACH processing are available
  • Paysley QR code payment service available

PaymentCloud Pricing

  • No application or account setup fees
  • “Free” terminal available with each account
  • Variable monthly fees
  • Variable processing rates (typically 2.95%-5.0%)
  • Variable recurring and incidental fees

What To Watch Out For

While you’ll often have to accept a long-term contract as a CBD merchant, accepting a “free” terminal makes this requirement much more likely. Alternatively, you might have to pay higher processing rates to compensate for the “free” equipment. Read your contract carefully before signing up and purchase your terminal outright, if possible.

Choose PaymentCloud If...

  • You want fair pricing and a dedicated account representative for more personal and reliable customer support.

Get Started With PaymentCloud

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National Processing: Best For Clover Hardware

National Processing

Total Rating 4.6
Fees & Rates4.8

Products & Services5.0

Contract4.6

Sales & Advertising Transparency4.4

Customer Service4.1

User Reviews4.4



Get a free Clover Go card reader from National Processing when you sign up. Claim your card reader.

Pros

  • Full line of Clover terminals and POS systems
  • Excellent online reputation
  • Low-cost echeck/ACH payment processing

Cons

  • “Free” equipment may require a long-term contract
  • Early termination fee charged for “free” equipment

Why National Processing Is The Best Choice For Clover Hardware

National Processing is mainly known for its excellent low-risk payment processing services, which feature competitive rates and transparent terms. However, it also works with a variety of high-risk industries, including CBD products. CBD merchants will have access to most of the same features National Processing offers to lower-risk merchants, including terminals, mobile payment processing, eCommerce support, and chargeback prevention tools. However, be prepared to pay higher transaction fees than those listed on the company's website.

As a Fiserv reseller, National Processing offers the full line of Clover terminals, card readers, and POS systems. Note that most Clover products require a monthly software subscription fee in addition to the cost of the equipment.

National Processing enjoys a great reputation among users and can be a good choice for your CBD business. As with many of our top choices, the company provides excellent customer service that's well ahead of the industry average.

Note: National Processing has recently changed to a flat-rate pricing system that features three options: Basic In-Person, Basic eCommerce, and Advanced. A customized pricing option is also available to merchants processing over $30,000/month. These plans appear to only apply to low-risk businesses, however. CBD merchants will most likely receive a customized pricing quote with higher rates.

National Processing Features

Key features available to CBD merchants include the following:

  • “Free” credit card terminal available
  • Offers ACH and echeck processing as an add-on
  • Offers a choice of three flat-rate pricing plans (low-risk businesses) or customized pricing
  • No long-term contract if processing hardware is purchased outright

National Processing Pricing

  • $9.95-$19+ monthly account fee (Basic & Advanced plans)
  • 2.50% + $0.10/in-person transaction (2.41% + $0.10 for Advanced Plan users)
  • 2.90% + $0.30/online transaction (Basic & Advanced plans)
  • 3.50% + $0.15/keyed-in transaction (basic & Advanced plans)
  • Customized pricing plans for businesses processing over $30,000/month
  • Variable processing rates for CBD businesses
  • $39.95/month for cash discounting program (optional)
  • $15.00/month + $0.48/transaction for ACH and echeck processing (optional)

What To Watch Out For

National Processing offers extensive pricing disclosures on its website, but they won’t apply to you as a high-risk CBD merchant. Be prepared to negotiate a customized pricing quote that’s tailored to your specific business.

Choose National Processing If...

  • You're looking for an affordable way to obtain a full-service merchant account.
  • You want to use Clover hardware products for accepting in-person payments.

Get Started With National Processing

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Square: Best For Low-Volume CBD Merchants & Startups

Total Rating 4.8
Fees & Rates5.0

Products & Services4.7

Contract4.3

Sales & Advertising Transparency5.0

Customer Service4.9

User Reviews4.9



Get a free card swiper from Square at no cost when you create a free account. Claim your card reader.

Pros

  • Predictable flat-rate pricing
  • No monthly fees
  • Very affordable processing hardware
  • Suitable for low-volume CBD businesses

Cons

  • Account stability issues
  • Below-average customer support

Why Square Is The Best Choice For Low-Volume CBD Merchants & Startups

Square has been offering CBD processing services since 2019. Transaction processing rates are notably higher than the company’s low-risk rates, but the lack of account fees makes it a great alternative to getting a traditional high-risk merchant account.

Square fully discloses all prices for its CBD program on its website. Processing rates are quite reasonable, although they’re naturally higher than what low-risk merchants are charged.

Square operates on a pay-as-you-go basis, eliminating virtually all of the onerous “hidden” fees that most other providers add to your bill. At the same time, you need to be aware that Square does have its limitations. As a payment service provider (PSP), Square aggregates your payment account with those of other merchants rather than providing you with a true full-service merchant account. Because of this limitation, the risk that your account will suddenly suffer a freeze, hold, or termination is higher than it is with a traditional merchant account. Also, Square’s reputation for customer service and support isn’t that great, although it has improved significantly in this area within the past few years.

Square Features

As a CBD merchant, you’ll also have access to the same Square products and services as other merchants, including the following:

  • Free Square Online eCommerce portal with each account
  • Free magstripe-only card reader
  • Inexpensive ($59) Square EMV & NFC card reader
  • Virtual terminal included with each account
  • QR code payments supported

Square Pricing

  • No monthly fee
  • 3.5% + $0.10 per transaction for in-person (i.e., card-present) CBD transactions
  • 3.8% + $0.30 per transaction for online and in-app CBD transactions
  • 4.4% + $0.15 per transaction for keyed-in and card-on-file CBD transactions
  • No PCI compliance fees, gateway fees, or early termination fees
  • No chargeback fees

What To Watch Out For

Square charges the same rate for credit and debit cards, which means that you’ll be paying a much higher rate for PIN debit transactions than you would under an interchange-plus rate plan. At low volumes, this is a reasonable tradeoff to avoid all of the numerous monthly and annual fees that come with a traditional merchant account. Higher-volume merchants (i.e., those processing more than $250,000/year) should inquire about the company’s customized pricing option.

Choose Square If...

  • You're a first-time CBD business owner, and you're looking for a low-cost alternative to a traditional, full-service merchant account.

Get Started With Square

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Corepay: Best For Mail-Order/Telephone Order-Only Accounts

Total Rating 4.0
Fees & Rates4.3

Products & Services5.0

Contract2.4

Sales & Advertising Transparency3.9

Customer Service4.3

User Reviews3.0



Pros

  • No application or account setup fees
  • No annual fees
  • Offers specialized Solidgate payment gateway
  • Accounts include extensive antifraud & chargeback protection features

Cons

  • Very few pricing disclosures

Why Corepay Is The Best Choice For Mail-Order/Telephone Order-Only Accounts

We chose Corepay as one of the relatively few high-risk specialists that not only accepts merchants selling most CBD products, but also provides extensive information about the unique factors that go into getting this type of merchant account. Corepay can usually place most CBD merchants, provided they comply with applicable federal, state, and local laws and haven’t had a previous account terminated by another provider.

Corepay offers a full range of products and services, with a particular emphasis on online and mail order/telephone order (MOTO) sales. Credit card and ACH processing are available, with rates for credit card transactions starting at 2.95%. Note that Corepay fully discloses that most high-risk merchants will pay processing rates that are significantly higher than what a comparable low-risk business would pay. The company is also mum about its contracts, so you can expect to have a long-term contract with an early termination fee and a rolling reserve when the account is first established.

Corepay Features

Corepay offers a variety of products and services for retail and online CBD merchants, including the following:

  • High-risk merchant accounts for CBD industries
  • Mail Order/Telephone Order (MOTO)-only accounts available
  • Multiple options for processing hardware
  • Specialized Solidgate  payment gateway for CBD businesses
  • ACH processing
  • Ethoca and Verifi chargeback protection services
  • Visa’s Rapid Dispute Resolution (RDR) service

Corepay Pricing

  • No application or account setup fees
  • No annual fees
  • Variable monthly fees
  • Processing rates start at 2.95%
  • Interchange-plus pricing available to some CBD businesses

What To Watch Out For

Corepay’s lowest disclosed rate (2.95%) is most likely only available to very high-volume businesses, and won’t apply to all transaction types. Most merchants will usually pay higher rates than this.

Choose Corepay If...

  • You primarily accept orders through the mail or via telephone, and you want the best anti-fraud and payment security features available.

Get Started With Corepay

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Easy Pay Direct: Best For Transparent Pricing & A Domestic Merchant Account

Easy Pay Direct

Total Rating 4.1
Fees & Rates4.0

Products & Services4.5

Contract3.7

Sales & Advertising Transparency3.9

Customer Service4.1

User Reviews4.0



Pros

  • Accepts CBD merchants selling ingestible and topical products
  • No monthly minimum
  • No early termination fee

Cons

  • Requires $99 account setup fee

Why Easy Pay Direct Is The Best Choice For Transparent Pricing & A Domestic Merchant Account

Easy Pay Direct, an experienced high-risk merchant account provider, now accepts CBD merchants. However, it doesn’t take startups unless they’re either very well-funded or have previous operating experience.

Easy Pay Direct's flagship product is its proprietary EPD Gateway. While you’ll have to pay a premium in terms of processing rates and account fees, you’ll be set up with a domestic bank or credit card processor. It’s also one of the very few CBD providers to offer some pricing disclosures on its website. US and Canadian merchants who qualify can get approved for an account in about 7-14 days.

The company’s processing rates start at 2.50% + $0.25 per transaction, although these are volume-based rates, meaning that only the largest businesses will qualify. One very positive feature of Easy Pay Direct’s contracts is that they do not have an early termination fee, even for high-risk businesses. While this isn’t quite the same as true month-to-month billing, it makes it much easier to close your account without penalty if you have to. Also, there’s no monthly minimum.

One helpful feature Easy Pay Direct offers is load balancing, where a business can divide its incoming funds among multiple merchant accounts. It’s particularly beneficial for high-risk businesses that often exceed the monthly processing volume limits imposed by the processor underwriting their accounts.

Just be aware that you’ll usually have to pay separate monthly fees for each account, so it might not be cost-effective for some merchants. You might not need this feature if you opt for an offshore account. Underwriting guidelines in some (but by no means all) foreign countries are more relaxed than they are in the United States, and you might not have a monthly processing limit imposed on your account at all.

Easy Pay Direct Features

Easy Pay Direct offers the following key features:

  • Offers high-risk merchant accounts to CBD businesses in the US and Canada
  • Load-balancing feature available
  • Proprietary Easy Pay Direct (EPD) Gateway included with each account
  • Virtual terminal available with EPD Gateway
  • Countertop credit card terminals are available
  • Proprietary QuickClick shopping cart (plus support for 250+ third-party carts)
  • APIs and SDKs available for site customization

Easy Pay Direct Pricing

  • $99 account setup fee
  • $29.99 monthly account maintenance fee
  • 2.50% + $0.25/credit or debit card transaction (low-volume businesses will pay more)
  • Variable additional monthly and annual fees
  • A long-term contract may apply
  • No early termination fee (except for offshore accounts)

What To Watch Out For

Easy Pay Direct’s $99 account setup fee isn’t unreasonable in the high-risk sector, but you should still try to negotiate a waiver of this charge when setting up your account.

Choose Easy Pay Direct If...

  • You'd like to avoid having a processor-imposed cap on your monthly credit card processing volume.

Get Started With Easy Pay Direct

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PayKings: Best For Interchange-Plus Pricing

Total Rating 3.8
Fees & Rates4.0

Products & Services5.0

Contract3.4

Sales & Advertising Transparency2.2

Customer Service3.9

User Reviews3.0



Pros

  • No setup or application fees
  • Multicurrency options
  • eCheck processing offered
  • Interchange-plus pricing offered

Cons

  • Early termination fee
  • Usually requires a rolling reserve

Why PayKings Is The Best Choice For Interchange-Plus Pricing

PayKings specifically advertises to CBD merchants, particularly those who’ve had their accounts with more traditional providers shut down. The company works with a network of over two dozen backend processors (including several offshore banks) to get you approved for an account  -- and does it without charging you any application or account setup fees.

While you'll probably have to accept a long-term contract with an early termination fee (ETF), such conditions are all but unavoidable for most high-risk enterprises.

PayKings also offers both tiered and interchange-plus pricing, but neither option is cheap. Luckily, you can offset some (or all) of these costs by implementing PayKings' credit card surcharging or cash discounting programs. PayKings provides a very broad array of products and services, including numerous third-party integrations. The company enjoys a mostly positive reputation among merchants, although complaints about early termination fees and rolling reserves have come up. These two requirements are actually imposed by the backend processor, not PayKings, making it more difficult to negotiate a waiver of either item.

PayKings Features

PayKings offers a complete range of products and services for both retail and online CBD merchants. Highlights include the following:

  • High-risk merchant accounts through 24+ acquiring banks
  • Choice of NMI or Authorize.Net payment gateways
  • Shopify integration available
  • ACH & eCheck processing available
  • Extensive developer support

PayKings Pricing

  • No application or account setup fees
  • Variable monthly fee
  • Rates as low as 2.49% (tiered pricing) or interchange + 1.0% (interchange-plus pricing)
  • Variable recurring and incidental fees
  • Most accounts will require a rolling reserve

What To Watch Out For

Like many other CBD payment processors, PayKings typically uses contracts that come with a long-term commitment, an early termination fee, and a rolling reserve when you open your account.

Choose PayKings If...

  • You're a high-volume CBD merchant, and you want to save money on credit card processing with interchange-plus pricing.

Get Started With PayKings

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SMB Global: Best For High-Volume CBD Merchants

Total Rating 3.9
Fees & Rates4.3

Products & Services5.0

Contract2.8

Sales & Advertising Transparency3.8

Customer Service3.5

User Reviews3.0



Pros

  • Accepts CBD businesses through offshore merchant accounts
  • Reasonable pricing and contract terms
  • Excellent customer service

Cons

  • Requires a minimum $50,000 monthly processing volume for offshore accounts
  • No mobile processing system at this time
  • No information available about credit card terminals or POS systems

Why SMB Global Is The Best Choice For High-Volume CBD Merchants

SMB Global is a high-risk specialist that spun off from one of our favorite providers, Payline Data, in 2016. The company accepts high-volume CBD merchants, using offshore accounts exclusively for this industry. Using a variety of back-end processors, it can approve a merchant account for almost any high-risk business, including those selling CBD oils.

SMB Global primarily focuses on serving eCommerce merchants but also supports traditional retail businesses, as well.

Because it works with so many banks and processors to get you approved for an account, the company doesn’t offer any specific pricing information. Processing rates, account fees, and contract terms vary widely depending on which back-end processor handles your account. While we highly recommend that you request an interchange-plus pricing plan, be prepared to have to accept a tiered plan instead, particularly if you haven’t been in business for very long. Likewise, you can also expect to have a standard three-year contract with an automatic renewal clause and an early termination fee. As a CBD merchant, you should be prepared to have a rolling reserve included in your account agreement.

SMB Global requires a minimum processing volume of $50,000 per month for an offshore merchant account, which can present a formidable barrier to a newly established CBD business. The company occasionally waives this requirement if your business has a strong financial history. Offshore accounts support multicurrency processing, allowing you to avoid cross-border fees. It also features dynamic currency conversion, letting your customers pay in either their local currency or the currency in which you bill them. SMB Global appears to accept CBD merchants only through offshore accounts at this time.

SMB Global Features

Key highlights of SMB Global’s product lineup include the following:

  • Offers full-service offshore merchant accounts
  • “Free” credit card terminal included with each account
  • Includes dynamic currency conversion feature
  • Authorize.Net or NMI payment gateways available
  • Fraud & chargeback prevention features available

SMB Global Pricing

  • Variable monthly fee
  • Variable processing rates & rate plans
  • Variable recurring & incidental fees
  • Variable processing equipment costs

What To Watch Out For

SMB Global doesn’t disclose very much specific information about its contracts or pricing on its website, so be prepared to negotiate the proposed terms of your contract before agreeing to sign up for an account.

Choose SMB Global If...

  • You process over $50,000/month and are looking for a reputable high-risk provider for your CBD business.

Get Started With SMB Global

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Payment Processing Rating Methodology

Merchant Maverick has been researching the payment processing industry since 2009. Our writers have reviewed hundreds of credit card processors, merchant account services, and mobile payment apps, evaluating each provider carefully on several different metrics.

When comparing different payment processing companies and applications to one another, we consider numerous data points. Our experts start by comparing credit card processing rates, the presence of additional fees, contract length, sales practices, and the presence or absence of additional features and services, like point of sale software. Each provider is judged on its own merits and how well it stacks up to industry standards; then it is weighed against the other providers on the list.

We spend an average of 10-15 hours researching and updating each one of our lists, making sure every company or application included meets our internal standards for quality and reputation. Any list of recommended payment processors on our site might contain a mix of standard merchant accounts, third-party payment processors, mobile payment devices, and high-risk payment processors, depending on what our expert feels is the best fit for certain scenarios or business types.

For additional details about Merchant Maverick’s review and rating processes, please refer to any or all of the following methodology pages:

15

Years reviewing payment processors

100+

Providers evaluated

25

Attributes and features assessed per vendor

40+

Years combined experience


What Is A CBD Merchant Account?

A CBD merchant account is a merchant account that has been specifically approved for use in selling some or all types of CBD products. CBD businesses are considered very high-risk, so most popular merchant account providers (and many high-risk specialists) will not accept merchants selling these products.

Why Do You Need A High-Risk Merchant Account For CBD Sales?

The credit card processing industry has placed CBD products firmly in the high-risk category, making it much more difficult and expensive to get a merchant account. Businesses can find themselves labeled as high-risk for any number of reasons. For CBD products, the main reasons are (1) high chargeback rates, (2) legal issues affecting the distribution of the product, and (3) unsubstantiated claims regarding the efficacy of CBD products.

Chargebacks are a known risk for just about any business, but the chance of experiencing one is much higher with CBD products. Unfortunately, the unproven claims of CBD’s beneficial health effects make it much more likely that consumers will file a chargeback if they feel that the CBD-based product they purchased didn’t help them or make them feel better at all.

The banks that underwrite merchant accounts also don’t like to deal with businesses that sell a product that is on shaky or unclear legal grounds. Currently, CBD laws vary widely from state to state, creating a number of legal conundrums for merchants who sell them.

Finally, like many products in the nutraceutical category, the purported beneficial effects of CBD oils have not been approved or validated by the Food & Drug Administration (FDA). With little or no peer-reviewed research currently available to measure the benefits of CBD use, the floodgates have been opened for businesses to tout CBD as a potential cure for… well, just about anything. Initially offered to help you relax and alleviate stress, CBD is now claimed (by some people, at least) to be helpful in treating depression, anxiety, and even autism.

Prior to 2018, CBD-based products were classified as Schedule I drugs by the FDA, making their sale, transportation, or use illegal under federal law. However, many states (38 as of this writing) have passed medical marijuana laws that legalized cannabis and CBD-based products for medicinal purposes. Some states (currently 24) have gone even further, legalizing marijuana for recreational use and removing most prohibitions against CBD-based products.

2018 Farm Bill And Legalization

The 2018 Farm Bill removed hemp-based products with less than 0.3% THC from the Schedule I list of controlled substances. However, to produce and sell your product legally, you must be a licensed grower and comply with all applicable federal and state laws. Since each state has its own specific requirements, it’s best to research your state’s laws and consult with an attorney or qualified consultant.

CBD Payment Processing Challenges

The passage of the 2018 Farm Bill was expected to make it much easier for CBD merchants to obtain merchant accounts and accept credit cards like any other business. However, Elavon began accepting CBD merchant accounts but shut them down due to quality control issues with the product. This situation highlights the need for merchants to ensure that their products contain less than 0.3% THC to avoid legal jeopardy.

FDA Regulations And High-Risk Merchant Accounts

The FDA still considers ingestible CBD products to be illegal because it has already approved the drug Epidiolex for use in treating certain forms of epilepsy. The FDA has not approved the use of CBD-based products for any other purpose, and research on the health benefits of CBD is still in its infancy. As a result, only a few high-risk specialists accept CBD businesses, and they may require an offshore merchant account. CBD merchants should expect high processing rates and additional restrictions beyond those typically required for a vanilla high-risk account.

Recommendations For CBD Merchant Accounts

If you are a CBD merchant, choosing a reputable and reliable payment processor is essential. We recommend choosing a processor with experience working with CBD merchants and providing fair prices and honest service. However, due to the high-risk nature of the industry, expect to be assigned a high-risk merchant account with additional restrictions and high processing rates. When obtaining a quote from any provider, discuss the restrictions they impose.

How To Choose A Provider For CBD Payment Processing

Finding a good high-risk merchant account provider for your CBD business involves the same criteria as a low-risk provider. It’s just harder to find a provider that offers the right combination of reasonable prices, fair contract terms, and high-quality customer service. Here are the most important considerations:

Account Approval Process

The underwriting process required to get approved for a merchant account can be tedious for any business owner, but it’s particularly difficult if you sell CBD products. Nonetheless, completing this process before you start processing credit card sales can save you from having your account suddenly shut down once you’ve started using it. You should be skeptical of providers offering “instant” approval of your merchant account, as they often defer this critical step until after you’ve already signed a long-term contract.

Processing Rates & Fees

Any high-risk merchant account will cost significantly more than a comparable low-risk one. Be prepared to have to accept a tiered pricing model (although some established businesses might be able to negotiate a more affordable interchange-plus model). You can also expect to be charged higher monthly and annual fees as well, although the difference in these costs isn’t as much as it is with processing rates. Another additional “expense” that most high-risk merchants have to contend with is a rolling reserve. That’s where your processor withholds a certain percentage of your funds every month until the reserve is met. While you’ll eventually receive all your money, rolling reserves can create serious cash flow problems for a small or newly established business.

Contract Terms

While we prefer month-to-month billing arrangements that don’t lock you into a long-term contract or force you to pay an early termination fee (ETF) if you close your account early, CBD merchants will usually have to accept both a long-term contract (typically for three years) and an ETF. Be aware that almost all long-term contracts include an automatic renewal clause that extends your contract, typically for one-year periods at a time.

Processing Hardware Options

If you plan to sell CBD products out of a retail location, you’ll need a mobile processing system, terminal, or point-of-sale (POS) system to read your customers’ cards. Your processing hardware should accept EMV payments at a minimum and preferably NFC-based (“contactless”) methods. For some specific recommendations, check out our article on the best credit card machines and terminals for small businesses. We also highly recommend purchasing your terminals outright rather than leasing your equipment. Leasing arrangements lock you into noncancelable long-term contracts, and you’ll end up paying several times more in leasing fees than your machine is worth.

eCommerce Support Features

Naturally, you’ll want to be able to sell your CBD products to as many customers as possible, and selling via a website allows you to do that. As we’ve noted above, there are still many legal grey areas regarding CBD sales across state lines that you’ll want to be aware of before you launch your website. At the same time, the recent legalization of hemp-based products is creating eCommerce opportunities that weren’t there as recently as six years ago. All of our recommended providers can set you up with a high-quality payment gateway that will allow you to process transactions over the Internet and significantly expand the reach of your business. As not all states have relaxed their marijuana laws, you’ll want to find a gateway that will automatically filter out customer addresses where CBD products are still restricted.

Customer Support

In researching dozens of merchant account providers, we’ve found that high-quality customer service is the real secret ingredient that separates the merely average providers from the truly outstanding ones. Customer support issues occur more frequently with CBD and other high-risk merchants, so you’ll want to pay particular attention to a provider’s reputation in this area.

CBD Payment Gateways & eCommerce

While they’re essential for eCommerce, payment gateways are increasingly finding their way into retail businesses as well, often as part of an integrated payments platform. Although the core function of a payment gateway is to process a transaction over the Internet, integrated platforms add many additional functions, including inventory management, employee scheduling, and sales analytics and reporting. Integrated platforms allow you to manage your business from anywhere – as long as you have a device with a web browser and access to the internet.

However, before you can use a payment gateway to sell CBD products, you’ll have to have an account with a payment service provider (PSP) or merchant account provider that has approved this activity.

Many fledgling CBD businesses have ground to a halt because the merchant didn’t realize that their provider expressly prohibited CBD sales until it was too late. Getting your account shut down can make it more difficult to find a new provider that will approve you, so it’s critically important that you sign up with a company that explicitly supports CBD sales and be completely honest about the nature of your products during the onboarding process. Here’s a summary of the policies regarding CBD sales of some of the most well-known payment processors:

Stripe CBD Policy

As of March 2024, Stripe’s Prohibited and Restricted Businesses policy prohibits using the company’s platform to sell products containing any amount of CBD/THC. Violation of this policy will result in immediate account closure and could possibly get you placed on the Terminated Merchant File (TMF) or MATCH List.

PayPal CBD Policy

While PayPal will allow almost anyone to sign up for a business account, its Acceptable Use Policy has always prohibited using its platform to sell any CBD products. Violation of this policy will result in the closure of your PayPal account. As of 2024, this policy is still in effect, and we haven’t seen any indication that it will change anytime soon.

Shopify CBD Policy

Shopify supports the sale of hemp-derived CBD products (but not marijuana-derived products) in states where it’s legal to do so. However, you’ll have to sign up with a third-party payment gateway provider (DigiPay and Bankful are the only choices at the moment) and ensure compliance with all applicable state and federal laws. The Shopify Payments credit card processing service is currently unavailable for CBD sales.

BigCommerce CBD Policy

BigCommerce offers extensive support to CBD businesses, including access to a choice of over 65 third-party payment gateways. The company also provides extensive information about the ins and outs of running a CBD business on its website and is an excellent resource to refer to when setting up your CBD business.

Authorize.Net CBD Policy

Visa-owned Authorize.Net doesn’t like to talk about CBD, but the truth is that you can process CBD sales over the Authorize.Net gateway. In addition to other legal requirements, you’ll have to use a merchant services provider that has approved your business for CBD sales. This shouldn’t be a problem, as PaymentCloud and many other CBD merchant account providers use Authorize.Net as their primary gateway option. Note that if you’ve signed up for payment processing services directly through Authorize.Net, you probably won’t be able to use that account for selling CBD products.

Which CBD Payment Processor Is Right For Your Business?

In spite of the passage of the 2018 Farm Bill legalizing hemp and its derivatives, the CBD industry has faced difficulties due to varying state laws and challenges in securing merchant accounts, especially after Elavon exited the industry in 2019. However, by 2024, the situation has improved, with companies like Square now offering CBD payment processing.

Despite this progress, the industry still grapples with regulatory inconsistencies, high chargeback rates, and its unwarranted link to the marijuana sector. For businesses that meet their criteria, the providers we’ve profiled above offer quality services at competitive rates, with Square being an excellent option for small or new CBD merchants. Larger businesses might consider other recommended companies for more comprehensive features and the stability of a full-service merchant account.

Our article on the best high-risk merchant account providers offers more options.

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Frank Kehl

Frank Kehl

Senior Staff Writer at Merchant Maverick
Frank has been writing about payment processing and business services since 2015. He is a retired Air Force officer and a former practicing attorney. He has a Bachelor of Science degree in Psychology from The Pennsylvania State University and a Juris Doctorate degree from the Ventura College of Law, and currently resides in Paso Robles, California.
Frank Kehl
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