CBD Merchant Processing: 8 Best Merchant Account Providers

Get Recommendations for the Best Merchant Account

    Those operating in the CBD industry or other high-risk industries may have a more difficult time finding a merchant account provider willing to process payments for their online store. However, boosting sales with credit card payments can help your business find success in today’s highly competitive atmosphere. 

    Since not all CBD merchant processing companies are made equal, learning about the costs and features involved during payment processing can help your business find a reliable merchant provider to do business with. 

    Best CBD Merchant Account Providers in 2021

    Before choosing a CBD merchant account provider to work with, you should compare various quotes from several companies to get the best value for money. Below are a few of the best providers that you can start considering.

    Best Overall: Square

    • Pricing: Online processing rate of 3.8% + 30 cents per transaction
    • Products Offered: Offers POS terminals and third-party app integration
    • Best Feature: No hidden fees or contracts 

    Unlike some merchant account providers, Square doesn’t charge any expensive startup fees, monthly fees, or other fees that can quickly inflate the cost of payment processing. This makes them our top CBD merchant account provider pick when it comes to pricing and reliability.

    They also integrate payments with the most popular platforms including Magneto, WooCommerce, and BigCommerce, and can work with your online store. If you don’t already have one, you can even set up a free online store with Square Online. 

    Best for External CBD Products: PaymentCloud

    • Pricing: Quote-based pricing
    • Products Offered: Offers free credit card terminal
    • Best Feature: High approval rates 

    In terms of CBD merchant processing, PaymentCloud is one of the well-known names on the market today. They approve most CBD-related merchants but don’t disclose pricing information online. A major perk is the free EMV-compliant terminal that comes with every account you open, as long as you stay in business with them. 

    If you run into any issues, they have a dedicated account manager to help you with customer service. However, they don’t work with companies that sell ingestible CBD products. 

    Best for Fast Approval Process: PayKings

    • Pricing: Rates as low as 2.49% per transaction 
    • Products Offered: Offers virtual terminals and online credit card payment processing
    • Best Feature: Allows cross-border transactions 

    For CBD merchants that want to get started right away, PayKings is a great option. They offer relatively affordable rates and integrate payment methods with most online platforms. Pre-approval can be given within 6 hours, but approval rates may take longer depending on your application.

    They offer plenty of payment solutions including mobile, mail order, telephone order, recurring billing, and more. They also integrate with popular platforms like Shopify. 

    Best for Ingestible CBD Products: Easy Pay Direct

    • Pricing: Rates start as low as 2.50% + $0.25 per transaction
    • Products Offered: Provides payment gateway 
    • Best Feature: No early termination fee or monthly minimum 

    Although Easy Pay Direct doesn’t usually work with CBD merchants, they work with established merchants in the US or Canada with a relatively short approval period of 1-2 weeks. Pricing information and fee data can be found online, which is uncommon for many CBD merchant providers. 

    However, note that they might charge a high application fee depending on your business type. 

    Best for High Volume Offshore Processing: SMB Global 

    • Pricing: Quote-based pricing 
    • Products Offered: Provides 2 different online payment gateway solutions 
    • Best Feature: Offers automated fraud monitoring software

    SMB Global works with CBD businesses that process high volumes at a minimum of $50,000 per month. They provide offshore accounts which can be helpful for those operating in several countries. They are also known for their high level of customer service, which can be handy if you run into any issues. 

    However, they don’t currently offer mobile payment processing. 

    Best for Flat Rate Pricing: PayWize

    • Pricing: Quote-based flat rate pricing 
    • Products Offered: Provides ecommerce gateway services 
    • Best Feature: Offers monthly billing 

    For CBD businesses looking for transparent pricing, PayWize is a relatively new company that works with companies in the United States. They offer a flat-rate fee, compatibility with plenty of website platforms and e-commerce sites, and detailed analytics and reports to help you boost your sales. 

    Best for Overseas Businesses: iPaytotal

    • Pricing: Quote-based pricing
    • Products Offered: Provides solutions for mobile, online, and telephone payments 
    • Best Feature: Offers PCI DSS Level 1 protection 

    iPaytotal caters to CBD merchants located in and out of the United States. They have a 99% merchant approval rate within 5-8 days and promise to reduce chargebacks by up to 72%. However, they require minimum weekly sales of $1,500 and a 10% rolling reserve to cover potential costs.

    They are a better choice for established businesses since you will need to have a payment processing history of at least 4-6 months.  

    Best for BigCommerce Integration: NMI 

    • Pricing: Quote based pricing, charges a minimum fee of $0.05 per transaction
    • Products Offered: Provides ACH, credit, and debit payment support
    • Best Feature: Offers recurring billing feature 

    If your CBD business operates on the BigCommerce platform, NMI is an excellent choice. They are known for their number of global payment options, fast payment processing, and detailed analytics and report generation. Other perks include the provision of a virtual terminal and a free shopping cart.

    However, they do charge a $10 monthly fee in addition to a fee of 5 cents per transaction. 

    The Benefits of Merchant Accounts for CBD Businesses

    Although they may charge higher fees and have a more complex application process compared to standard merchant accounts, high-risk merchant accounts offer plenty of perks for CBD businesses:

    • Flexibility of payment options: Through merchant accounts, CBD businesses are typically more able to offer recurring payments, sell products internationally, and therefore expand more efficiently.
    • Process higher volumes: High-risk merchant accounts enable CBD businesses to process higher sales volumes, which can be ideal for sale season or special product launches
    • Greater expertise: High-risk merchant providers have a greater understanding of the risks involved in processing payments for CBD businesses and can therefore help reduce chargeback rates and prevent fraud 

    Frequently Asked Questions

    How do I process CBD payments?

    The four main processing options for CBD brands are domestic credit card processing, domestic e-checks, payment terminals, and offshore credit card processing. 

    What is a merchant processing account?  

    Merchant accounts are a type of business bank account that allows companies to accept and process electronic transactions. These accounts require businesses to partner with a merchant acquiring bank, which then facilitates all communications for each electronic transaction. 

    Does Square process CBD payments? 

    Square generally allows CBD businesses to accept payments so long as their hemp and hemp-derived products have less than, or equal to, 0.3% THC.

    How do you get approved for a merchant account?

    To get approved for a merchant account, ensure you have a positive credit rating. You also have to be honest about all your previous merchant accounts, bankruptcies, liens, and judgments. 

    How long does it take to get a merchant account?

    Merchant accounts can take up to two weeks to be opened, but it may take less. 

    Working with a specialized CBD merchant processor comes with many advantages including expansion and profitability. However, it is a good idea to read the fine print and any termination clauses before signing a contract with a provider. 

    Read on to learn more about choosing high-risk merchant processors to help you make your decision at Processing Card today! 

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