Over the past decade, CBD has become wildly popular for its therapeutic properties. Whether it’s oil, lotion, or gummies — more and more companies are looking to cash in on the CBD craze. The tricky part? Finding a payment processing partner for this type of “high-risk” business can be difficult. Many CBD merchants have turned to Stripe CBD; however, partnering with Stripe comes with more restrictions than you can count.
With more merchants stepping into the CBD world every day, the demand for high-risk payment processors is on the rise. In order to run their online business unhindered, merchants will need to find alternative payment processors with fewer restrictions.
Stripe CBD payment processing is categorized as a restricted business. This means that Stripe puts restrictions on certain types of industries due to their high-risk nature. If you’re selling CBD on Stripe, you may be in violation of the terms and conditions you signed when you opened your account.
To be exact, Stripe bans, “cannabis dispensaries and related businesses,” “products and services with varying legal status on a state-by-state basis,” and “products that make health claims that have not been approved or verified by the applicable local and/or national regulatory body.” If you’re looking to sell CBD, it’s best to steer clear of Stripe and look for a high-risk merchant account instead.
Stripe CBD isn’t specifically listed on their website restrictions. However, banks and other financial institutions consider CBD to be high-risk and transactions surrounding it will require special attention. At first, Stripe may mislead CBD merchants looking to sell their products online, as Stripe accounts feature instant approval upon creation. However, it’s only a matter of time before your account gets flagged and dropped.
Stripe’s policies for CBD are different from those of a high-risk payment processor. Where Stripe could drop your account at any point, high-risk processors eliminate the chance of interrupted payments, allowing you to conduct business restriction-free.
Despite their wide popularity, there are other payment processing options available other than Stripe, Square, and the like. A high-risk payment processing partner will be more qualified than payment gateway options like Stripe; they’ll understand what you need for selling CBD products and they’ll have different relationships with banks and financial institutions that allow for higher-risk business.
Needless to say, Stripe CBD may not be the way to go. As a CBD merchant, you need a high-risk payment processing partner that can eliminate the chance of having payments interrupted or your account being dropped. Luckily, WizoPay has one of the best high-risk solutions for merchants selling CBD. We have the expertise and support to take your CBD business to the next level. Contact us today to get started!