10 Best CBD Credit Card Processing Companies

Your payment processor should be a silent partner in your success, working seamlessly in the background to keep your revenue flowing. For a CBD business, this requires more than just basic transaction services. You need a robust system that actively prevents fraud, minimizes chargebacks, and integrates perfectly with your e-commerce platform. These features aren’t just nice-to-haves; they are essential tools for protecting your business and maintaining a stable merchant account. When you start your search, it’s important to look beyond the rates and evaluate the technology and support that a provider offers. We’ll walk you through the key features to look for and compare the leading cbd credit card processing companies that deliver on these crucial needs.

Key Takeaways

Choose a Specialist, Not a Generalist: Mainstream processors avoid the CBD industry due to its “high-risk” label. To get approved and stay active, you need a payment partner who specializes in your industry and has the necessary banking connections.
Prioritize Stability Over Low Fees: The cheapest rate isn’t the best if it leads to a frozen account. A reliable processor offers essential tools for fraud prevention, chargeback management, and compliance that are crucial for protecting your revenue and ensuring long-term success.
Get Your Paperwork in Order: The application process for a high-risk account is thorough. Speed up your approval by having your business license, EIN, and bank statements ready, and be completely transparent with your processor about your products.

Why Is Finding a CBD Payment Processor So Difficult?

If you’ve been trying to find a reliable payment processor for your CBD business, you’ve likely run into more than a few roadblocks. It can be incredibly frustrating to have a great product and eager customers but no simple way to accept their payments. Let me assure you, this difficulty isn’t a reflection of your business; it’s a result of how the financial industry views the CBD market as a whole.

Most of the challenges boil down to one word: risk. Mainstream payment processors and the banks they partner with are often hesitant to work with CBD companies for a few key reasons that create a perfect storm of complications. First, the industry is officially labeled “high-risk,” a classification that comes with its own set of hurdles like higher fees and fewer options. Second, the legal landscape for CBD is a patchwork of federal and state rules that are constantly in flux, creating a compliance nightmare for standard processors who prefer clear-cut industries. Finally, this legal uncertainty makes many traditional banks unwilling to provide the necessary merchant accounts that underpin all credit card processing. When you combine these factors, you get an environment where finding a stable, long-term payment partner feels nearly impossible. But understanding these core issues is the first step to finding a processor who is equipped to help you succeed.

What “High-Risk” Means for Your Business

When a payment processor labels your business “high-risk,” it’s not a personal judgment—it’s a technical classification based on their risk assessment. For CBD businesses, this label is almost automatic due to the industry’s legal ambiguities and historically higher rates of chargebacks. Processors see this as an increased financial risk for them.

As a result, you’ll find that many standard providers, like Stripe or PayPal, will outright deny your application. The ones that do accept CBD merchant accounts often impose stricter terms, including higher transaction fees and a rolling reserve, to protect themselves. It’s a frustrating reality, but it’s the standard operating procedure for an industry that financial institutions still consider unpredictable.

Keeping Up with Changing Regulations

The legal status of CBD is one of the biggest reasons why payment processing is so complex. While the 2018 Farm Bill legalized hemp-derived CBD at the federal level, it left the regulation up to the states. This has created a confusing and inconsistent web of rules that vary from one state to another. Some states have clear guidelines, while others operate in a gray area.

This ambiguous legal status makes it incredibly difficult for large, traditional payment processors to ensure compliance across the board. Rather than adapt their systems to these ever-changing rules, many simply choose to avoid the CBD industry altogether. This leaves you with a smaller pool of specialized processors who are willing to do the work to stay current with the complex regulatory environment.

Overcoming Common Banking Hurdles

Ultimately, every payment processor needs a partner bank to hold merchant funds. This is where many CBD businesses hit their biggest wall. Most major financial institutions are extremely conservative and have strict internal policies that prevent them from working with industries they consider to be a reputational or legal risk. Because of the lingering legal gray areas surrounding CBD, many banks simply say no.

This banking reluctance trickles down, limiting the number of processors who can even offer you a merchant account. The processors who can serve the CBD industry are the ones who have cultivated relationships with banks that understand the market and are willing to take on the perceived risk. This is why partnering with a high-risk specialist is so critical—they have the essential banking connections you need to get approved and start processing payments securely.

The Best CBD Credit Card Processing Companies

Finding the right payment processor is one of the most important decisions you’ll make for your CBD business. It’s not just about accepting payments; it’s about finding a stable, long-term partner who understands the industry’s unique hurdles and is committed to your growth. A great processor provides more than just a way to take credit cards—they offer security, compliance tools, and the support you need to operate without worrying about sudden account freezes or closures.

Because the CBD space is considered high-risk, your options are more specialized than they are for a typical online store. To make your search easier, I’ve put together a list of the top credit card processing companies that work with CBD businesses. Each one brings something different to the table, from extensive banking relationships to specialized fraud protection tools. Think about your specific needs—like your sales volume, e-commerce platform, and budget—as you review these options to find the perfect fit for your business.

Borderfree Payments

As our name suggests, we specialize in removing barriers for businesses in high-risk industries like CBD. We provide a complete payment infrastructure designed to be both secure and reliable, so you can focus on growing your brand. We work closely with our merchants to provide tailored payment solutions, not one-size-fits-all accounts. This includes robust fraud prevention tools, support for multiple currencies if you sell internationally, and expert guidance on the ever-changing regulatory landscape. Our goal is to be more than a processor; we want to be your partner in building a stable and scalable business.

PaymentCloud

PaymentCloud has built a strong reputation for serving high-risk businesses, and they have a deep understanding of the CBD market. They are particularly skilled at helping you connect your payment processing with your online store, ensuring a smooth checkout experience for your customers. One of their biggest strengths is their commitment to keeping up with new laws and regulations, which takes a significant compliance burden off your shoulders. They work to find you a stable, long-term banking partner so you can avoid the disruptions that plague many CBD sellers.

Easy Pay Direct

If you’re looking for a processor with a long track record in the cannabis space, Easy Pay Direct is a name you’ll come across. They’ve been working with CBD and related industries since 2010, giving them over a decade of experience in this specific field. This history means they have a nuanced understanding of the industry’s unique needs and pain points. They specialize in creating stable processing solutions for businesses that have been shut down by other processors, making them a reliable choice for merchants who need a dependable CBD merchant account.

PayKings

PayKings stands out for its extensive network of acquiring banks. They work with over 20 different banking partners, which significantly increases your chances of getting approved for a CBD merchant account. This large network also allows them to find competitive rates and terms tailored to your business model. They are known for a fast approval program, which is a major plus if you’re eager to get your store online and start selling. This focus on speed and accessibility makes them a popular choice for new and established CBD oil businesses alike.

Square

Square is one of the most recognizable names in payment processing, and they have a specific program for CBD businesses. Their platform is known for being user-friendly and easy to set up, making it an accessible option for small businesses and startups. However, this convenience comes at a cost. Square’s fees for CBD products are higher than their standard rates, with online transactions costing 3.8% + 30¢. While it’s a straightforward solution, be sure to calculate how these higher fees will impact your profit margins as your business scales.

Authorize.net

Authorize.net is a payment gateway, not a direct merchant account provider. Think of it as a secure bridge that connects your website to your payment processor. It’s one of the oldest and most trusted gateways available, known for its reliability and advanced security features. To use Authorize.net for CBD sales, you’ll still need a separate high-risk merchant account from a provider like Borderfree Payments. This combination is a great choice if you want the robust features of a leading gateway paired with the stability of a specialized high-risk processor.

National Processing

National Processing is often praised for its transparent pricing and commitment to helping merchants find the lowest possible rates. They offer high-risk merchant accounts for CBD businesses and focus on creating clear, easy-to-understand statements so you always know what you’re paying. In an industry where hidden fees can be a problem, their straightforward approach is a welcome change. If your top priority is finding a cost-effective solution without sacrificing service quality, they are definitely worth considering.

Host Merchant Services

Host Merchant Services consistently earns top marks for its outstanding customer support. For a high-risk business, knowing you have a responsive and knowledgeable team to call is invaluable. They also champion transparent pricing, typically offering interchange-plus plans that pass the direct cost of processing on to you with a small, fixed markup. This model is often more affordable and predictable than tiered pricing. If you value a strong support system and clear, fair pricing, Host Merchant Services is an excellent option.

SMB Global

For CBD businesses with an international reach or those that have had trouble securing a domestic account, SMB Global is a strong contender. They specialize in both high-risk and offshore merchant accounts, giving them the expertise to handle complex payment setups. Their team is skilled at handling the different regulations and banking requirements across global markets. If you’re selling to customers outside of the U.S. or need a processor with experience in hard-to-place industries, SMB Global has the network and knowledge to support your business.

eMerchantBroker

Chargebacks are a major concern for any CBD seller, and eMerchantBroker (EMB) offers powerful tools to address this head-on. They provide a chargeback alert system designed to help you resolve disputes before they escalate, which can protect your account and save you money. EMB also focuses on making the application process as smooth as possible, even providing a checklist to help you gather the necessary documents. This level of proactive support shows their commitment to helping high-risk merchants succeed from day one.

Key Features to Look for in a CBD Payment Processor

When you’re running a CBD business, choosing a payment processor isn’t just about finding the lowest transaction rate. It’s about finding a stable, long-term partner who understands the unique challenges of your industry. The right processor acts as a shield, protecting your revenue from the volatility that comes with being labeled “high-risk.” The wrong one can lead to frozen funds, sudden account closures, and a constant state of stress.

To make the right choice, you need to look beyond the surface-level sales pitch and examine the features that truly matter. A great CBD processor offers more than just a way to accept cards; they provide a suite of tools designed to keep your business secure, compliant, and growing. Think of it as building a foundation for your business. You need a processor that offers robust security to fight fraud, proactive systems to minimize chargebacks, and seamless integrations to make your daily operations run smoothly. Let’s walk through the essential features you should have on your checklist.

Robust Fraud Prevention

Because the CBD industry operates in a complex legal environment, it can unfortunately attract a higher rate of fraudulent transactions. Basic fraud filters just won’t cut it. You need a processor that provides advanced, customizable fraud prevention tools to protect your hard-earned revenue. Look for features like Address Verification System (AVS), CVV verification, and IP address blocking. A top-tier processor will also offer more sophisticated tools, like velocity checks that flag an unusual number of transactions from a single source. These systems work in the background to weed out bad actors before a transaction is even completed, saving you from the headache and financial loss of dealing with payment fraud.

Proactive Chargeback Protection

For a CBD merchant, chargebacks are more than just an annoyance—they’re a direct threat to your merchant account. An excessive chargeback ratio is one of the fastest ways to get your account shut down. That’s why you need a processor that helps you get ahead of disputes, not just react to them. Look for partners that offer chargeback alert systems, which notify you of a customer dispute before it becomes a formal chargeback, giving you a window to issue a refund and avoid a damaging mark on your record. A good processor will also provide clear guidance on how to use billing descriptors and customer service practices to prevent chargebacks in the first place.

Seamless Integration with Your Tech Stack

Your payment processor should fit into your business operations, not force you to rebuild them. Seamless integration with your existing technology is crucial for efficiency and growth. Before you commit, confirm that the processor’s payment gateway integrates easily with your ecommerce platform, whether it’s Shopify, WooCommerce, or another major player. This connection simplifies everything from accounting to inventory management and enables a smoother checkout experience for your customers. A processor that works well with your other systems eliminates manual data entry, reduces the risk of errors, and lets you focus on running your business instead of wrestling with technology.

Support for Multiple Currencies

The CBD market is a global one, and your business shouldn’t be limited by borders. If you have ambitions to sell internationally, you need a processor that can handle payments from around the world. Multi-currency support allows you to display prices in a customer’s local currency and process their payment without a hitch. This simple feature can dramatically improve trust and reduce cart abandonment for your international shoppers. It’s also a strong indicator that a processor is sophisticated and well-equipped to handle the complexities of cross-border commerce, which is a great sign for any high-risk business looking for a reliable partner.

Responsive and Knowledgeable Support

When your payments are on the line, you can’t afford to wait in a queue or argue with a chatbot. In the high-risk world, a payment issue can bring your entire operation to a halt, so access to excellent customer support is non-negotiable. Look for a processor that offers 24/7 support from real people who are experts in the CBD industry. These are the specialists who will understand your situation immediately and know how to resolve it. Before signing any contract, test their support channels. Give them a call or send an email with a few questions. Their response time and the quality of their answers will tell you everything you need to know.

Flexible Mobile Processing

Your sales opportunities aren’t confined to your website. Whether you’re at a trade show, a farmers market, or a pop-up event, you need the ability to accept payments on the go. A processor that offers flexible mobile processing solutions is essential for capturing every possible sale. This typically includes a reliable and easy-to-use mobile card reader that connects to your smartphone or tablet via a simple app. Having a professional mobile POS system not only makes transactions smoother but also expands your revenue streams, allowing you to meet your customers wherever they are.

Built-In Compliance Tools

Staying compliant in the ever-changing CBD landscape is a massive challenge, but you don’t have to do it alone. A true payment processing partner will provide you with tools and resources to help you adhere to all relevant regulations. This can include built-in systems for age verification or shipping restrictions that automatically block sales to states where your products are not legal. A processor that invests in these features demonstrates a deep commitment to the industry and to the long-term success of its clients. These tools are invaluable for managing risk and building a sustainable business on a solid, compliant foundation.

A Breakdown of CBD Processing Costs

When you’re running a CBD business, understanding your payment processing costs is key to managing your finances and ensuring profitability. Unlike standard retail, the fee structure for high-risk industries can feel complex. Processors build in safeguards to manage the financial risks associated with fluctuating regulations and higher chargeback rates, which is reflected in the fees. But don’t worry—once you know what to look for, it’s all very straightforward.

Think of these costs not as penalties, but as the price of securing a stable, reliable way to accept payments in a specialized market. A transparent processor will walk you through every line item, so you always know exactly what you’re paying for. Let’s break down the most common fees you’ll encounter so you can budget effectively and choose a partner who offers fair, sustainable pricing for your business.

Transaction Fees

For every sale you make, your processor will take a small percentage and sometimes a flat fee. This is the most common charge you’ll see. For CBD businesses, transaction fees typically range from 2.5% to 6% per transaction. The exact rate depends on your provider, your sales history, and your specific business model. Processors that specialize in high-risk industries may have rates on the higher end of this spectrum, as they provide an essential service that standard processors won’t offer. This fee covers the cost of moving money securely from your customer’s bank to yours.

Monthly Fees

In addition to per-transaction costs, most processors charge a monthly fee for account maintenance. This fee keeps your merchant account active and gives you access to the payment gateway and reporting tools. You may also see other recurring charges bundled into this cost. CBD businesses can encounter several types of processing fees, including charges for customer support, compliance services, and maintaining your presence on the payment network. Think of it as a subscription that keeps your payment infrastructure running smoothly and securely month after month.

Volume Pricing Tiers

As your business grows, your processing costs don’t have to grow at the same rate. Many processors offer tiered pricing that rewards high-volume merchants with lower rates. For example, if your business processes over $250,000 in sales annually, you may qualify for better rates and reduced fees. This is a great incentive to scale your operations. When you’re comparing processors, always ask if they offer volume-based discounts. It’s a good indicator of a partner who is invested in your long-term success and is willing to grow with you.

Setup and Integration Fees

Getting your payment processing up and running involves a one-time setup fee. This cost covers the technical work of creating your merchant account and integrating the payment gateway with your website or point-of-sale system. Because the underwriting and onboarding process for CBD is more intensive, these initial fees can sometimes be higher than in other industries. While some CBD payment processors have higher standard rates, a good partner will be transparent about these costs upfront, ensuring there are no surprises as you get started.

Chargeback and Risk-Related Fees

Chargebacks happen when a customer disputes a charge with their bank, and they are a primary reason why the CBD industry is considered high-risk. Each chargeback you receive comes with a fee from your processor, and a high chargeback ratio can even put your merchant account at risk. These fees cover the administrative cost of managing the dispute process. That’s why it’s so important to work with a processor that offers robust chargeback prevention tools and support to help you keep your dispute rate low and avoid unnecessary penalties.

What Is a Reserve?

A reserve is a portion of your funds that the payment processor holds to cover potential losses from chargebacks or fraud. It’s like a security deposit and is a standard practice in high-risk industries. Because payment gateway solutions for CBD merchants carry extra risk, a reserve protects the processor and ensures they can continue offering services to your industry. The reserve amount is typically a percentage of your sales and may be held for a rolling period. A transparent processor will clearly explain their reserve policy, including how much is held and when it will be released back to you.

How to Manage Risk and Stay Compliant

Running a CBD business means you’re already familiar with wearing multiple hats. On top of being a product expert and a marketer, you also have to be a compliance officer. The rules for selling CBD can feel like a moving target, but staying on top of them is essential for keeping your payment processing account active and your business growing. The key is to understand the landscape and partner with a processor who gets the nuances of your industry. Regulatory uncertainty at both federal and state levels complicates the payment processing landscape for CBD businesses, but it’s a challenge you can absolutely handle with the right approach.

By breaking down the requirements and implementing smart practices, you can build a resilient operation. It starts with knowing the rules of the road, from federal guidelines to local laws, and putting systems in place to monitor your transactions. This isn’t just about avoiding legal trouble; it’s about showing banks and processors that you’re a reliable, low-risk partner. A transparent relationship with your payment processor is your best asset here, as they can help you meet banking requirements and maintain a stable merchant account for the long haul. Think of compliance not as a barrier, but as the foundation for a sustainable business.

Federal Regulations to Know

While the 2018 Farm Bill made hemp-derived CBD with less than 0.3% THC federally legal, it didn’t create a free-for-all. The Food and Drug Administration (FDA) still has a lot to say about how you can market and sell your products. For instance, making specific health claims about what CBD can treat or cure is a major red flag for regulators and payment processors alike. Understanding the FDA’s regulations is the first step toward ensuring your website, product labels, and marketing materials are fully compliant. This protects your business and shows processors you’re a responsible merchant.

State-by-State Rules

On top of federal laws, every state has its own rules for CBD. These can vary widely, covering everything from licensing and testing requirements to the types of products you can sell. Because CBD laws are constantly evolving, you have to stay informed and adaptable to ensure compliance across all the regions you sell to. This vigilance is essential for maintaining uninterrupted payment processing and avoiding legal trouble. Working with a payment processor that has experience in the CBD space can be a huge help, as they are often up-to-date on the shifting legal landscape and can offer guidance.

The Importance of Transaction Monitoring

Because the CBD industry is considered high-risk, banks and processors watch transactions very closely. Implementing a robust transaction monitoring system helps you spot and stop fraudulent orders before they become costly chargebacks. But it does more than that—it also demonstrates to your financial partners that you’re actively working to reduce risk. Many modern payment processors offer built-in tools that automatically flag suspicious activity, like an unusually large order or multiple failed payment attempts. This proactive approach is a key part of managing payment risk and keeping your merchant account in good standing.

How to Maintain a Stable Account

Financial institutions often shy away from CBD businesses due to perceived legal and reputational risks, which is why finding a reliable processor can be a challenge. Once you find one, the goal is to keep that relationship strong. The best way to do this is through transparency. Be upfront about your products, your marketing strategies, and your business model from the very beginning. Establishing a transparent relationship with your payment processor can help maintain account stability and prevent sudden freezes or closures. Think of your processor as a partner in your success—the more they know, the better they can support you.

Meeting Banking Partner Requirements

Your payment processor acts as the bridge between your business and their acquiring bank partners. These banks have their own strict underwriting criteria, especially for high-risk industries like CBD. Selecting the right payment processor is critical because a good one will already know what their banking partners require. They can guide you through the application process, help you prepare the necessary documentation, and ensure your business practices align with the bank’s compliance standards. This expertise is invaluable for getting approved and building a stable, long-term processing relationship.

How to Choose the Right CBD Payment Processor

Picking a payment processor is one of the most important decisions you’ll make for your CBD business. It’s more than just finding a way to accept money; it’s about choosing a long-term partner who understands the unique challenges of the industry and is invested in your success. Because the CBD space is labeled “high-risk,” your choice has bigger consequences than it does for a typical retail store. The wrong partner can lead to sudden account freezes, withheld funds, or even outright termination, which can stop your revenue cold. This isn’t just an inconvenience—it can threaten your entire operation.

A great partner, on the other hand, provides the stability, security, and specialized support you need to grow without constantly looking over your shoulder. They’ll work with you to manage risk, stay compliant with shifting regulations, and keep your transactions flowing smoothly across all your sales channels. Finding this fit requires looking beyond just the advertised rates and digging into the details of what a processor truly offers. As you evaluate your options, focusing on the right criteria from the start will save you from major headaches down the road. Use these five key areas to find a provider that truly fits your business and supports your long-term goals.

Define Your Business Needs

Before you start comparing companies, take a moment to map out exactly what you need. Are you selling exclusively online, in a physical store, or both? Do you plan to offer subscription boxes or sell internationally? Your business model will determine the features you need most. Make a checklist of your must-haves and nice-to-haves. The best way to find a reliable partner is to do your research and connect with companies that specialize in high-risk industries. This simple step will help you filter out providers that aren’t equipped to handle your business, saving you time and preventing future headaches.

Compare Rates and Fees

While it’s tempting to go for the lowest advertised rate, it’s crucial to understand the full picture. Transaction fees for CBD businesses typically range from 2.5% to 6%, but that’s just one piece of the puzzle. Be sure to ask about all potential costs. Many CBD businesses encounter different types of processing fees, including monthly account fees, setup fees, and chargeback penalties. Ask for a complete fee schedule from any processor you’re considering and review it carefully. A transparent partner will be upfront about all their charges, ensuring there are no surprises on your monthly statement.

Read the Fine Print

Your merchant agreement is a legally binding contract, so don’t just skim it. Choosing the right payment processor is vital for CBD merchants, and the details in your contract can make or break your business. Pay close attention to the contract length, early termination fees, and the processor’s policies on holding funds or terminating accounts. Because the CBD industry is considered high-risk, some processors include clauses that give them more power to freeze your funds. Make sure you understand these terms completely before you sign. If something seems unclear, ask for clarification. A trustworthy partner will be happy to explain their policies.

Check for Technical Compatibility

Your payment processor should make your life easier, not more complicated. Ensure their technology integrates smoothly with the tools you already use. Does their payment gateway work with your e-commerce platform, like Shopify or WooCommerce? Can it connect to your retail POS system or accounting software? Using integrated payment processing for your CBD business can simplify your bookkeeping, speed up transactions, and create a seamless checkout experience for your customers. Before committing, confirm what the integration process looks like and whether it requires technical expertise on your end.

Test Their Customer Support

When an issue arises with your payments, you need help from a real person, fast. Don’t wait until there’s an emergency to find out what a company’s support is like. Before you sign up, give their customer service a test run. Call their support line or start a live chat. Are they easy to reach? Do you get a knowledgeable human or just a chatbot? A great processor will offer responsive, 24/7 support from experts who understand the nuances of high-risk industries. This is your financial partner, and you deserve to feel confident that they’ll be there when you need them most.

Your Next Steps to Get Approved

Getting approved for a CBD merchant account can feel like a huge hurdle, but it’s entirely manageable when you know what to expect. The key is preparation and partnering with a processor that specializes in high-risk industries. Unlike standard applications, this process involves more detailed vetting to ensure your business is compliant and stable. Think of it less as a test and more as building a foundation for a long-term partnership. By breaking the process down into clear, actionable steps, you can move forward with confidence and get your payment processing in place without unnecessary delays.

The Application Process, Step-by-Step

The first step is choosing a payment processor that truly understands the unique challenges of the CBD market. Once you’ve found the right partner, the application process typically follows a clear path. You’ll start by submitting an initial application with basic information about your business. From there, the processor’s underwriting team will review your documents to verify your business’s legitimacy and compliance. This is the most critical phase. They’ll assess your risk profile and ensure you meet the requirements of their partner banks. Once underwriting is complete and you’re approved, you’ll move on to the integration phase to get your new payment solution up and running.

Gather These Documents

To make the underwriting process as smooth as possible, have your paperwork ready to go. High-risk processors have strict documentation requirements because they need to prove your business’s compliance to their banking partners. You’ll almost always need your business license, Articles of Incorporation, and your federal Tax ID Number (EIN). It’s also smart to have a voided business check or bank letter, recent bank statements, and your supplier agreements on hand. Providing clear, organized documents from the start shows that you’re a professional and trustworthy merchant, which can speed up your approval time significantly.

What to Expect for Integration

Once you’re approved, the next step is connecting the payment processing solution to your website or retail setup. A quality processor will make this part straightforward. You can expect a seamless integration with popular e-commerce platforms like Shopify or WooCommerce, often through a simple plugin. If you have a custom-built site, they should provide clear API documentation and developer support to help your team get everything connected. The goal is to create a secure and efficient checkout experience for your customers, with fast transaction speeds and reliable performance that helps your operations run smoothly from day one.

Tips for a Smooth Account Setup

A successful account setup is built on transparency and communication. Be upfront with your processor about your business model, products, and marketing practices. This helps them place you with the right acquiring bank. It’s also crucial to stay informed about the latest regulations in the CBD industry, as compliance is an ongoing effort, not a one-time task. Finally, choose a processor whose technology simplifies your workflow. An integrated system that syncs with your accounting or inventory software can save you countless hours and reduce the risk of manual errors, setting you up for long-term stability and growth.

Frequently Asked Questions

Why can’t I just use a mainstream processor like Stripe or PayPal for my CBD sales? While it might seem easier, using a standard processor like Stripe or PayPal for CBD sales is a risky move that can seriously jeopardize your business. These platforms have strict terms of service that explicitly prohibit transactions for high-risk industries, including CBD. Even if you get approved initially, their automated systems will eventually flag your account, leading to frozen funds and a sudden shutdown without warning. It’s far better to partner with a high-risk specialist from the start who has the proper banking relationships to support your business securely and for the long term.

What is a “rolling reserve,” and does it mean I lose that money? A rolling reserve is a common safety measure in high-risk processing, and you don’t lose the money. Think of it as a temporary security deposit. Your processor holds a small percentage of your daily sales for a set period, typically 90 to 180 days, to cover any potential chargebacks. As you make new sales, the funds from the beginning of that rolling period are released back to you. As long as you manage your business well and keep chargebacks low, it’s a continuous cycle where funds are held and then returned, protecting both you and the processor.

My application to a processor was denied. What should I do now? First, don’t panic. A denial isn’t necessarily the end of the road. Your first step should be to ask the processor for the specific reason you were turned down. Sometimes it’s a simple issue, like missing documentation or a compliance problem on your website that you can easily fix. If the denial is due to their bank’s risk tolerance, your next step is to apply with a different high-risk specialist. Processors work with different banking partners, and a business that is not a fit for one bank may be a perfect fit for another.

Besides transaction rates, what’s the most important factor when choosing a processor? The single most important factor is stability. You need a processor who is deeply committed to the CBD industry and has strong, established relationships with multiple acquiring banks that knowingly accept CBD merchants. This is your best defense against sudden account closures. A partner who understands the regulatory landscape and is invested in the industry’s future is far more valuable than one who simply offers the lowest rate but might disappear when regulations shift.

How can I actively work to lower my processing fees over time? The best way to earn lower fees is to prove you are a reliable, low-risk merchant. Focus on keeping your chargeback ratio as low as possible by providing excellent customer service and using fraud prevention tools. As your business grows and you establish a consistent processing history with a healthy sales volume, you build a track record of stability. Once you have several months of solid performance, you can approach your processor to discuss qualifying for a lower rate based on your proven track record.

Top 10 CBD Credit Card Processing Companies