With increased legalization and reduced restrictions in the sale and use of CBD, CBD oil, and hemp-based products including topicals, gummies and edibles, an influx of CBD based products and businesses are emerging. Because cannabidiol—more commonly referred to as CBD—is derived from the marijuana plant, many credit card processors may be reluctant to associate with your business. Therefore, finding a CBD credit card processing company to help you set up your CBD merchant account can be challenging.
CBD e-commerce is considered a high-risk business for most merchant processors, which can complicate the process of getting paid for your sales. If you’re looking to open a hemp or CBD merchant account, it may be difficult to find the right partner to manage your CBD credit card processing or hemp product payment processing. It’s not uncommon for e-commerce platforms to discontinue working with CBD or hemp companies with little to no notice. Your current processor may even decide to close your account if they change policies. Both situations leave your business in a terrible situation.
As a CBD merchant, you will need to find a payment processor who works with high-risk businesses. You need a partner who has specifically experienced working with CBD e-commerce merchants and understands the industry. It’s relatively easy to find high-risk payment processors, but it can be difficult to identify high-risk payment processors who have an understanding of the industry.