Despite the popularization of cannabidiol (CBD) oil, commercial institutions still classify CBD business owners and distributors as high-risk merchants. That's why finding reputable credit card processors for CBD products remains challenging.
However, with the recent surge of CBD sales setting the market for an annual growth rate of 40% by 2025, more third-party CBD merchant processing service providers have been open to CBD payment processing. Plus, selling CBD and hemp products is already legal in multiple states. CBD merchants just have to learn how to find a reliable, suitable, and most importantly, legitimate CBD payment processor.
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Our top pick to help CBD startups and SMBs expand payment options and start credit card processing is Square. They're a reputable processor that works with a wide range of merchants in varying industries, from small startups to medium-sized enterprises. You'll benefit from their competitive rates no matter what your monthly order volume is.
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Easy Pay Direct is a reputable high-risk processor backed by two decades of experience. They have fair processing rates, offer flexible terms, don't require minimum monthly orders, and most importantly, process payments for both topical and oral CBD goods.
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PaymentCloud is a well-known high-risk merchant account provider. They offer competitive processing rates to businesses in different high-risk industries, including CBD and hemp. Although, note that they only work with merchants who sell topical CBD. If you distribute oral or ingestible goods, they'll reject your application.
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SMB Global has connections with a wide range of banks and institutions, which is why they have the freedom to work with high-risk businesses. Plus, they offer the most competitive rates. The only catch, however, is they only accommodate high-volume merchants.
If your CBD business processes at least $50,000 worth of sales per month and you're willing to open an offshore account, you may benefit from their fair, reasonable pricing system.
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If you need a payments processor that accommodates international purchases of CBD and hemp goods, try iPayTotal. What sets them apart from other overseas processors is they're PCI-certified. You won't have to worry about sketchy agents scamming you with high monthly fees, weak payment gateways, and poor technical service.
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Looking for other CBD payment processors? Processing Card has multiple resources any high-risk entrepreneur can refer to when looking for suitable credit card processing solutions. Visit the Processing Card website today!
There are primarily three ways for CBD merchants to process card payments:
Unfortunately, domestic CBD card processing services aren't too common. Plus, commercial institutions would only give merchant accounts a shot if they processed well over six digits' worth of sale monthly.
Clients can try opening an offshore merchant account if they're having trouble qualifying for processing credit cards domestically.
If you already have a CBD oil merchant account, your best bet would be to check out third-party processors that accommodate high-risk business types. Just make sure not to fall for unfairly high transaction rates.
PayPal doesn't allow businesses in the cannabidiol and marijuana industry to use their platform. Even those with a legitimate merchant account would have to look for alternative payment solutions to accommodate their business needs.
Square allows merchants to sell any hemp or cannabidiol product with no more than 0.3% THC content. However, CBD merchants can only process in-store and online credit card payments through Square if they qualify for CBD Early Access Program (EAP). Also, Square's payment processing services might not be available in states that prohibit the recreational use of marijuana.
Disclaimer: For more information on what cannabidiol oil merchant services the Square platform offers, you can visit their website.
Here are the largest commercial banks open to working with cannabidiol businesses:
Note: Most of these institutions won't be willing to provide CBD and hemp oil businesses with a merchant account. However, they may be open to other arrangements. You can turn to these banks for a wide range of banking products, from company credit cards to business loans.
For a better shot at qualifying for a CBD merchant account, strive to improve your profile. Those in the cannabidiol industry can boost their credit score, generate more monthly sales, and reduce the number of chargebacks they get. Overall, the goal is to reduce your assigned risk—both as a business entity and as a client.
Having a hard time grasping how credit card processing works? Processing Card has multiple downloadable resources that dive in-depth into what a payment processor does and how merchant accounts can utilize these systems. Reach out to the Processing Card team now!
