Merchants operating in the Cannabidiol (CBD) and Hemp Oil sectors frequently encounter more obstacles than usual when seeking eCommerce payment services. Owing to its links with the medical marijuana industry, CBD oil is often labeled as high-risk by many payment processors. This classification can lead to abrupt closures of CBD business merchant accounts, disrupting ongoing transactions and freezing pending payments. Nevertheless, CBD merchants have a dependable alternative in specialized merchant account service providers that cater to nearly all high-risk merchants in the CBD industry.

Following the removal of hemp from certain controlled substances lists, financial institutions have shown increased openness to these businesses. Yet, the CBD and Hemp industries often remain on the prohibited industries lists of numerous credit card payment processors, largely due to their varied legal statuses.

Businesses that collaborate with SecurePay Online will find that CBD payment processing services are tailor-made and established with the specific needs of the CBD industry in mind. Unlike most high-risk industry payment processors that offer generic merchant accounts and payment solutions with high costs and extensive bureaucracy, a CBD-specific account offers businesses more stable merchant processing solutions, competitive rates, and improved payout schedules. Providing businesses with CBD-friendly merchant accounts is a key objective of SecurePay Online.

What is CBD?

CBD, derived from cannabis, has garnered attention for its medicinal properties and legal status. Unlike Tetrahydrocannabinol (THC), the psychoactive component in cannabis, CBD often contains negligible THC levels (below 0.3%), classifying it as Hemp. This classification permits the sale of CBD in most areas without legal repercussions.

CBD can be consumed through smoking, vaporizing, or as an aerosol spray. While making medical claims about CBD is illegal in many regions, it has been incorporated into some approved medications. An increasing array of products, including coffees, teas, candies, and snacks, are now infused with CBD.

CBD Merchant Accounts

Traditionally, CBD sales were confined to cash transactions in retail outlets like smoke or vape shops. With relaxed regulations, payment processors began allowing credit and debit card transactions, initially limited to swiped payments. Now, most CBD store merchants can process various transaction types, including card-not-present.

The approval of card-not-present transactions by payment processors led to a surge in online sales. Merchant accounts and payment gateways accommodating CBD and Hemp Oil sales saw significant increases in volume. Payment processors ensure these gateways comply with PCI standards, aiding CBD merchants in mitigating fraud and theft risks in their credit payment networks.

Businesses taking phone or mail orders can utilize credit card or virtual terminals. Virtual terminals, often part of high-risk payment gateway programs, are particularly useful for e-commerce CBD businesses, centralizing all online and phone orders. This consolidation streamlines transaction management for CBD merchant accounts.

Another option for merchants is CBD echeck processing services for both online and retail sales. While credit cards remain popular, echeck is a preferred choice for some customers. Offering this service alongside CBD merchant accounts can help businesses reduce card acceptance fees.

Banking and Merchant Accounts for CBD

CBD’s legal status varies, remaining legal on a case-by-case basis. Most credit card payment processors operate across different jurisdictions, placing CBD in a legal gray area.

Despite growing public support, policy changes are needed for broader legal acceptance. Until then, CBD businesses must seek specialized payment service solutions.

CBD Merchant Account Types Accepted

Various CBD businesses exist, each needing to comply with local and federal laws for CBD merchant account approval. Merchants must ensure customers are over 18, often requiring age verification software for online sales.

Our financial networks are well-versed in the CBD industry and its products. We can provide CBD payment processing for products like beauty creams, edibles, gummies, sprays, supplements, terpenes, tinctures, vape oils, vitamins, and Hemp Oil.

CBD Payment Processing Services Available

The CBD industry now enjoys more payment options. As processors become more comfortable with CBD products, additional features have become available. What was once a cash-only sector has expanded to include online sales and distribution. CBD merchants can now accept payments using credit card terminals, payment gateways, virtual terminals, and check and ACH solutions.

CBD Credit Card Processing Issues Affecting CBD Businesses

Many new online CBD businesses initially use common payment aggregators. However, these aggregators typically do not support CBD businesses, leading to eventual account closures without notice, leaving CBD businesses in a lurch.

Considered high-risk by most payment processors, CBD businesses should partner with a provider specializing in Cannabidiol. Payment processors’ concerns stem not from chargebacks or fraud but from legal implications of facilitating sales of a Schedule 1 drug.

Until CBD is recognized as a medical product and laws become more uniform, CBD businesses will face payment processing challenges. Partnering with a specialized processor ensures compliance and avoids complications associated with other payment solutions. Non-compliant CBD merchants risk account termination and potential fines.

Merchant Account Requirements for CBD Merchants

CBD businesses typically need to submit the same documentation as other high-risk industries:

• Owner Identification
• Voided Check from CBD Business Checking Account
• Previous Bank and Merchant Processing Statements
• Copy of EIN

Additional documentation to verify products sold may include:

• Detailed Inventory of CBD Products
• Lab Results for Each Product
• State Licenses/Registrations
• Onsite Inspections

Requirements vary by bank, but CBD businesses should be prepared to submit most, if not all, of these documents.

CBD Payment Processor Benefits with SecurePay Online

Partnering with SecurePay Online offers more than quick CBD merchant account approvals. We support merchants in building successful CBD businesses. While many processors avoid the CBD industry, we aim to be a leading CBD processor. We offer competitive features like fraud scrubbing, chargeback prevention, and compliance monitoring, helping businesses grow through our specialized CBD merchant accounts.

Our CBD merchants benefit from:

• 24/7 Customer Support
• Complete Online Reporting
• Online Transaction Management
• Credit Card Information Capture
• Fraud Protection
• Chargeback Prevention
• Full PCI-Compliance

 

Open a CBD Merchant Account Today!

CBD industry merchants seeking reliable and affordable accounts are encouraged to apply with SecurePay Online. We integrate with various e-commerce platforms, and our professionals can assist in setting up CBD payment processing at competitive rates. Our team is ready to answer any high-risk merchant questions and address concerns about your company or our CBD services before processing payments.