Top 7 CBD Merchant Services for High-Risk Sales

If you’re running a CBD business, you know that accepting payments can be one of your biggest hurdles. It’s a common story: you set up with a standard processor, things run smoothly for a while, and then you get the dreaded email—your account is frozen or shut down. This happens because mainstream providers aren’t built to handle the complexities of the CBD industry. This is precisely where specialized CBD merchant services come into play. They are designed from the ground up to provide stable, reliable payment processing for businesses labeled “high-risk,” ensuring your revenue stream remains secure so you can focus on growth.

Key Takeaways

Embrace High-Risk Specialization: Standard payment processors often prohibit CBD sales, leading to sudden account freezes. To build a stable business, you must partner with a merchant service provider that has proven experience in the high-risk CBD industry.
Secure Your Business with the Right Tools: Your payment processor should be a line of defense. Prioritize providers that offer robust chargeback management, secure gateway technology, and knowledgeable support to safeguard your revenue and reputation.
Operate with Transparency and Proof: Your ability to accept payments depends on proving your products are legal. Keep your Certificates of Analysis (COAs) organized and work with a processor who understands the nuances of federal and state CBD laws to ensure long-term stability.

What Are CBD Merchant Services?

If you’re running a CBD business, you’ve probably realized that accepting payments isn’t as simple as it is for other retailers. That’s where CBD merchant services come in. Think of them as specialized payment processing solutions built specifically for the unique landscape of the CBD industry. These services are designed to help you accept credit and debit card payments securely, whether you sell online or in a physical store.

More than just a way to take money, a good CBD merchant service provider understands the rules you have to follow. They offer tools and support to ensure you’re meeting all the compliance requirements while keeping your transactions running smoothly. This specialized approach is crucial because, as you may have discovered, the world of CBD payments has its own set of challenges that standard processors just aren’t equipped to handle. It’s all about finding a partner who gets the industry and can provide a stable foundation for your business to grow.

Why CBD Payment Processing Is Different

So, what makes selling CBD so tricky for payment processors? It boils down to one word: risk. Many financial institutions label the CBD industry as “high-risk.” This isn’t a reflection on your business or products, but rather a response to a few key factors. The primary concerns are the higher potential for customer chargebacks and the ever-shifting legal rules surrounding CBD.

Because of this high-risk classification, many mainstream payment processors like Stripe or PayPal will not work with CBD businesses. Those that do often come with higher fees and stricter terms. Finding a reliable payment processor that truly understands the nuances of the CBD market is one of the first major hurdles for any entrepreneur in this space.

The Challenges of Finding a Reliable Processor

It’s unfortunately common for CBD business owners to get turned down by merchant service providers. Even providers that openly support the cannabis industry might hesitate to take on a CBD client due to the perceived risks. This fear from banks and payment companies often stems from the legal gray areas and past issues with a few low-quality sellers that gave the industry a bad name.

As a result, many legitimate CBD businesses struggle to find a stable, long-term processing partner. It’s not unusual for a CBD company to have its account suddenly shut down, leaving it unable to accept payments. This is why finding a provider with deep experience in the CBD space is not just a convenience—it’s essential for survival.

A Breakdown of the Best CBD Merchant Service Providers

Finding the right payment partner can feel like searching for a needle in a haystack, but it doesn’t have to be. I’ve done the legwork for you and compiled a list of some of the best CBD merchant service providers out there. Each one offers something a little different, so you can find the perfect fit for your business goals, whether you’re just starting out or looking to scale. We’ll look at providers known for their high-risk expertise, quick approvals, and robust security features.

The goal here is to give you a clear, straightforward comparison to help you make a confident decision. We’ll explore what makes each provider stand out, from their approach to chargeback management to their integration capabilities with popular e-commerce platforms. Remember, the best partner is one who understands the unique challenges of the CBD industry and provides the stable, reliable infrastructure you need to grow without worrying about sudden account freezes or shutdowns. Let’s get into the top contenders.

Borderfree Payments

As specialists in high-risk payment processing, we built Borderfree Payments to give businesses like yours the stability and security you deserve. We understand the complexities of the CBD market inside and out, which is why we provide tailored solutions that address your specific needs. Our focus is on creating a secure and compliant payment infrastructure that removes barriers to your growth. With advanced fraud prevention tools, multi-currency support for global expansion, and expert guidance on regulatory requirements, we act as a true partner. We’re here to ensure your payments flow seamlessly so you can focus on what you do best—running your business.

PaymentCloud

PaymentCloud has earned a strong reputation for its skill in supporting high-risk industries, making it a go-to for many CBD businesses. They are particularly recognized for being “adept at assisting businesses in high-risk industries, such as CBD.” This means they not only help you get set up but also provide solutions that connect with your online store and adapt as legal requirements change. For any CBD entrepreneur, having a processor that stays on top of evolving regulations is a huge advantage. Their expertise provides a layer of security and foresight, helping you stay compliant and operational without unexpected interruptions. This focus on adaptation makes them a solid choice for long-term stability.

eMerchant Broker

If you’re looking for a provider that simplifies the application process and helps you proactively manage chargebacks, eMerchant Broker (EMB) is worth a look. They offer a clear, comprehensive checklist to help you gather everything you need for a smooth application. One of their standout features is a system designed to alert you about chargebacks, which can “significantly reduce their occurrence.” This is incredibly valuable in the CBD space, where chargeback rates can be higher than average. By giving you a heads-up, EMB allows you to address customer issues before they escalate into costly disputes, protecting your revenue and your merchant account’s standing.

Centurion Payment Services

For new CBD businesses eager to get up and running, Centurion Payment Services stands out for its speed. They are known for a welcoming approach to startups and can often get accounts approved in just a few days. According to industry analysis, they are a “quick option for startups” because they can approve accounts in as little as three days. This rapid turnaround can be a game-changer when you’re trying to launch your products and start generating revenue without long delays. If your priority is getting to market fast with a reliable payment solution, Centurion’s efficient onboarding process makes them a compelling option to consider.

Square

Square is a familiar name in payment processing, and they offer a secure solution for certain CBD businesses. They accommodate sales across multiple channels, including online, in-person, and through mobile apps. However, there’s a critical detail to be aware of: Square only permits payment processing for hemp and hemp-derived CBD products that contain 0.3% THC or less. If your product line fits squarely within these guidelines, Square can be a streamlined and user-friendly option. But if you sell or plan to sell products with a broader cannabinoid profile, you’ll need to look for a different high-risk specialist to ensure you remain compliant.

PayKings

One of the biggest hurdles for a CBD business is simply getting approved for a merchant account. PayKings tackles this challenge head-on by working with an extensive network of over 20 acquiring banks. This strategy significantly enhances the likelihood of approval for CBD merchants, as it gives you more opportunities to find a banking partner that understands and accepts your business model. They also offer a “fast approval” program specifically designed for businesses selling CBD oil, which helps streamline the process even further. Having more banks in your corner means you have a much better shot at securing a stable, long-term merchant account.

Easy Pay Direct

Easy Pay Direct specializes in providing payment solutions specifically for CBD companies in the United States and Canada. Their core mission is to offer secure and reliable services without penalizing businesses for being in a high-risk category. They emphasize that their CBD merchant accounts are designed to provide stability, which is a top concern for any operator in this space. By focusing exclusively on the needs of industries like CBD, they have developed an expertise that allows them to offer tailored support and infrastructure. This specialization makes them a strong candidate for businesses looking for a processor that truly understands their unique challenges and is committed to their success.

Must-Have Features for Your CBD Merchant Account

When you’re vetting potential payment processors, it’s easy to get lost in the details. To cut through the noise, focus on the features that truly matter for a CBD business. The right merchant account isn’t just a tool for accepting payments; it’s a foundational piece of your business that protects you from risk and helps you grow. Think of it as a partnership. You need a provider that understands the specific hurdles of the CBD industry and has built its services to help you clear them. From managing chargebacks to ensuring your tech stack works together seamlessly, these are the non-negotiable features your CBD merchant account needs.

High-Risk Processing Capability

First and foremost, you need a provider that specializes in high-risk industries. Because of the complex and evolving legal landscape, traditional banks and payment processors often classify CBD businesses as “high-risk.” This means a standard merchant account just won’t do—you’re likely to face sudden account freezes or shutdowns. A dedicated high-risk processor has the infrastructure and banking relationships to handle the regulatory uncertainties of the CBD market. They understand the risks involved and have built their systems to provide stable, reliable CBD payment processing so you can operate with confidence, knowing your revenue stream is secure.

Chargeback Management and Prevention

Chargebacks are a significant concern in the CBD industry, often stemming from customer confusion or dissatisfaction. Your merchant services provider should offer robust tools for both managing and preventing them. This goes beyond simply fighting disputes after they happen. Look for a partner that provides proactive chargeback prevention strategies, such as detailed transaction records and transparent billing descriptors that make it clear to customers what they purchased. Excellent customer service is your first line of defense, but having a processor with built-in fraud detection and dispute management support is essential for protecting your bottom line and maintaining a healthy merchant account.

Secure Payment Gateway

In any ecommerce business, customer trust is everything. A secure payment gateway is the digital equivalent of a locked front door—it protects sensitive customer data during every transaction. For CBD merchants, this is especially critical for building credibility and preventing fraud. A gateway that uses encryption and tokenization ensures that financial information is shielded from potential threats. This security not only protects your customers but also helps you. By using a secure payment gateway, you can significantly reduce the likelihood of fraudulent transactions that could lead to costly chargebacks and damage to your reputation.

E-commerce Platform Integrations

Your payment processor should work in harmony with the rest of your online store. Whether you’re using Shopify, WooCommerce, BigCommerce, or another popular platform, you need a merchant account that offers seamless integrations. The last thing you want is a clunky, complicated setup process that requires custom coding or creates a poor checkout experience for your customers. The best providers offer simple plugins or apps that make connecting your payment gateway to your e-commerce platform a breeze. This allows you to get up and running quickly and ensures a smooth, professional transaction process that encourages customers to complete their purchases.

Flexible and Timely Funding

Cash flow is the lifeblood of any business, and waiting days or weeks for your funds to clear can stifle growth. Look for a CBD merchant services provider that offers flexible and timely funding schedules. Some processors can deposit funds into your account as soon as the next business day. This rapid access to your money allows you to reinvest in inventory, marketing, and other operational needs without delay. Certain providers, like Square, even offer access to business loans, providing another avenue for capital when you need it. A provider that prioritizes quick and reliable funding demonstrates that they are invested in your success.

Knowledgeable Customer Support

When you have a question or an issue arises, you need to speak with someone who understands the nuances of the CBD industry. Generic customer support won’t be able to help you with the specific challenges you face. Partner with a provider that offers expert, accessible customer support. You should be able to reach a real person who can provide clear answers and effective solutions, whether you’re dealing with a technical glitch, a funding question, or a compliance concern. Having a knowledgeable, trustworthy partner in your corner is invaluable for avoiding financial pitfalls and keeping your business running smoothly.

Understanding Fees and Legal Requirements

Once you find a processor that understands the CBD space, the next step is to get clear on the costs and rules. Because the CBD industry is considered high-risk, you’ll face a different set of financial and legal hurdles than a standard ecommerce store. This isn’t meant to discourage you; it’s about going in with your eyes open. A transparent payment partner will walk you through their fee structure and compliance requirements, ensuring there are no surprises. Being prepared for these conversations helps you protect your business and build a sustainable foundation for growth.

What Fees Should You Expect?

Let’s be direct: processing payments for CBD products costs more. Payment companies classify CBD as “high-risk” because of the industry’s history with chargebacks and the ever-changing legal landscape. As a result, processors take on more financial risk to support your business. You should expect to see higher transaction rates compared to low-risk industries. Many providers also have monthly account fees, setup fees, or reserve requirements, where a percentage of your revenue is held to cover potential disputes. Think of these fees not as a penalty, but as an investment in a stable merchant account that won’t suddenly drop you.

Watch Out for Hidden Costs

While higher fees are standard, hidden costs are not. Some processors take advantage of the fact that CBD merchants have fewer options. They might lure you in with a low introductory rate, only to bury extra charges in the fine print of your contract. Be on the lookout for unexpected costs like high early termination fees, vague “non-compliance” penalties, or sudden rate increases without warning. Before you sign anything, ask for a complete schedule of fees in writing. A trustworthy partner will be upfront about every potential charge and will happily answer your questions. Your goal is to find a provider who values transparency as much as you do.

Stay on Top of Federal and State Regulations

The world of CBD law is complex. While the 2018 Farm Bill legalized hemp-derived CBD at the federal level, state laws vary dramatically. On top of that, the FDA continues to regulate how CBD products can be marketed and sold. It’s your responsibility as a business owner to stay compliant with all applicable rules, but a good payment processor will be a key ally. They should be knowledgeable about the regulations in the regions you sell to and have systems in place to help you conduct business responsibly. This partnership is essential for long-term stability.

Why THC Content Verification Matters

Proving your products are legal is non-negotiable. The critical difference between federally legal hemp and illegal marijuana is the THC content, which must be at or below 0.3%. Your payment processor needs absolute certainty that you are selling compliant products. To do this, you must provide a Certificate of Analysis (COA) from a third-party lab for every product you sell. This document verifies the cannabinoid profile, including the THC level. Have these documents organized and ready to share. It’s a foundational requirement for any legitimate CBD payment processor and a sign that you’re a serious, professional operator.

How to Solve Common Payment Processing Problems

Running a CBD business means facing payment hurdles that other industries don’t. From sudden account shutdowns to a constant battle with chargebacks, these challenges can feel overwhelming. But with the right knowledge and a proactive approach, you can handle these issues and keep your revenue flowing smoothly. Think of this as your guide to troubleshooting the most common payment processing headaches. We’ll walk through practical solutions for keeping your account active, your customers happy, and your business protected from misinformation.

What to Do About Account Shutdowns or Frozen Funds

Waking up to a frozen account is a nightmare for any business owner. This often happens because standard payment processors, like Stripe or PayPal, aren’t equipped for high-risk industries. Their terms of service often prohibit CBD sales, and when their automated systems flag your account, they can shut it down without warning. The best way to solve this problem is to prevent it from happening in the first place. Partner with a dedicated high-risk merchant account provider from day one. These specialists understand the legal and financial landscape of the CBD industry. They have the necessary banking relationships to provide stable, long-term processing, so you won’t have to worry about losing access to your funds overnight.

How to Minimize Chargebacks

Chargebacks can eat into your profits and threaten your merchant account. The key to minimizing them is a combination of transparency and excellent record-keeping. Start by making sure your billing descriptor—the name that appears on a customer’s credit card statement—is easily recognizable as your business. Vague descriptors are a common cause of disputes. You should also maintain meticulous records of every transaction, including customer communications and proof of delivery. Proactive customer service is another powerful tool. Make your refund policy clear and your support team easy to reach. Answering a customer’s email quickly is always better than fighting a chargeback later.

Build Strong Customer Service Practices

Great customer service is one of your best defenses against payment disputes. When customers trust you, they are far more likely to contact you directly with a problem instead of initiating a chargeback. Build that trust by being transparent in all your communications. Send immediate order confirmations, provide shipping updates with tracking numbers, and make your contact information easy to find on your website. Using a secure payment gateway is also essential, as it protects customer data with encryption and shows that you take their privacy seriously. These practices demonstrate that you are a legitimate, professional business dedicated to a positive customer experience.

Clear Up Common Misconceptions

The CBD industry is filled with confusing information, especially about payments. One of the most dangerous myths is that some processors have found a “secret workaround” to accept credit cards for federally prohibited substances. The truth is that major card networks like Visa and Mastercard explicitly forbid these transactions. Any processor claiming otherwise is likely miscoding your transactions, a practice that can lead to heavy fines and account termination. It’s crucial to work with a provider who is transparent about the rules and regulations. A trustworthy partner will help you process payments for legal, hemp-derived CBD products correctly and keep your business compliant.

How to Choose the Right CBD Merchant Provider

Picking a payment processor is one of the most important decisions you’ll make for your CBD business. The right partner will provide stable, secure payment processing that lets you focus on growth. The wrong one can lead to frozen funds, surprise shutdowns, and a lot of stress. To make sure you find a provider you can trust for the long haul, you need to do your homework. Think of it like a job interview—you’re in control, and you need to ask the right questions to find the perfect fit for your company.

Ask These Questions Before You Commit

Before you sign any contract, get clear, direct answers. If you sell CBD, you need a special merchant account. Mainstream services like Stripe or PayPal often shut down accounts that sell CBD products, sometimes freezing your funds for months without warning. Start by asking a potential provider if they have direct experience with CBD and other high-risk industries. Ask for their specific policies on CBD sales and what measures they have in place to protect your account. A trustworthy provider will be transparent and ready to explain how they support businesses just like yours, ensuring your payment processing remains stable and uninterrupted. Don’t be shy about asking for specifics—your financial stability depends on it.

Spot These Red Flags Early

Be on the lookout for providers who make promises that seem too good to be true. One of the biggest red flags is a processor claiming they’ve found a “workaround” to process credit card payments for cannabis-related products. The truth is, major card networks like Visa and Mastercard still have strict prohibitions on these transactions. Any “workaround” likely involves miscoding your business, which puts you at high risk for sudden account termination and hefty fines. Also, be wary of vague pricing structures, pressure to sign a long-term contract immediately, or a complete lack of online reviews. A legitimate partner will be upfront about their services and limitations.

Evaluate a Provider’s Reputation and Experience

Your payment processor is a long-term partner, so their track record matters. It’s essential for CBD businesses to work with a knowledgeable, trustworthy, and secure payment processor to avoid financial headaches. Since many traditional vendors won’t service the cannabis industry, finding a specialist is key. Look for a provider with a proven history in the CBD space. Check for testimonials and case studies from similar businesses. A quick search for online reviews can also give you a sense of their customer service quality. Don’t hesitate to ask for references you can speak with directly. A provider with deep industry experience will not only offer reliable processing but also understand the unique challenges you face.

How to Set Up Your CBD Merchant Services

Once you’ve chosen a provider, getting your CBD merchant account up and running involves a few key steps. Setting up your payment infrastructure correctly from the start is the best way to prevent future headaches like frozen funds or account shutdowns. Think of it as building a strong foundation for your business to grow on. By focusing on security, training, and compliance now, you’re setting yourself up for smooth, reliable payment processing down the road.

Set Up Your Payment Gateway

Your payment gateway is the technology that securely captures and transmits customer payment data to the processor. For an online CBD store, this is your virtual credit card terminal. A secure gateway is your first line of defense, as it encrypts sensitive information to protect both you and your customer. This is especially important in a high-risk industry where chargebacks can be a major issue. A high-risk provider will set you up with a gateway designed to handle CBD sales, helping you prevent chargebacks before they happen by ensuring every transaction is properly authenticated and secured from the very beginning.

Ensure Every Transaction is Secure

Security goes beyond the gateway. Your payment processor should ensure your entire payment environment is safe. This means handling all the complex requirements for you, so you can focus on your business. A reliable provider ensures your business is following all payment rules, a standard known as PCI compliance, which is mandatory for anyone accepting card payments. They also implement advanced data safety protocols and fraud detection tools that monitor transactions for suspicious activity. This comprehensive approach to security protects your revenue and builds essential trust with your customers, assuring them their information is safe with you.

Train Your Team on the New System

Even the most advanced payment system is only as effective as the people using it. Take the time to train your staff on how the new system works, from processing sales to issuing refunds. Most importantly, make sure they understand the fraud prevention tools your provider offers and the role they play in protecting the business. When your team knows what to look for and how to respond to customer issues proactively, you can resolve potential disputes before they escalate into chargebacks. This internal diligence is a critical step to reduce your chargeback ratio and maintain a healthy merchant account.

Maintain Compliance with Best Practices

The CBD industry is constantly evolving, and so are the rules that govern it. Staying compliant is not a one-time task but an ongoing commitment. Your merchant service provider should be a key partner in this, offering guidance on best practices and keeping you informed of regulatory shifts. This includes being transparent in your marketing, providing clear lab results for your products, and having straightforward return and shipping policies. Adhering to these standards helps you avoid customer confusion and disputes, which is essential for securing reliable processing solutions in an industry where scrutiny is high.

Frequently Asked Questions

Why are the processing fees for CBD so much higher than for other businesses? It’s natural to question the higher rates, but they aren’t arbitrary. Processors that support the CBD industry take on a greater financial risk due to the legal complexities and higher-than-average customer disputes, or chargebacks. Think of the fee as your investment in stability. A dedicated high-risk provider has built the specific infrastructure and banking relationships needed to protect your account from being suddenly frozen or shut down, which is a common risk with standard, low-cost processors.

I’m already using a standard processor like Stripe or PayPal and haven’t had issues. Should I still switch? Yes, you absolutely should. Operating a CBD business on a standard platform is a ticking clock. These companies have strict terms of service that prohibit CBD sales, and their automated systems will eventually flag your account. When that happens, they can freeze your funds for months and shut you down without warning. It’s much safer to partner with a high-risk specialist from the start to build your business on a secure and compliant foundation.

What’s the most common reason a CBD merchant account gets shut down unexpectedly? The most frequent cause is a failure to follow the rules of the card networks, often without even realizing it. This can happen if a processor miscodes your business to hide the fact that you sell CBD, or if your chargeback rates climb too high. Another major reason is selling products that don’t comply with the 0.3% THC limit. A reliable high-risk provider helps you avoid these pitfalls by ensuring your business is categorized correctly and by providing tools to manage chargebacks effectively.

Besides the processor itself, what is the best thing I can do to reduce chargebacks? Your best tool is clear and proactive communication. Ensure the business name that appears on your customer’s credit card statement is one they will immediately recognize. Vague billing descriptors are a top cause of confusion that leads to disputes. Beyond that, provide excellent customer service. Send order confirmations, share tracking information promptly, and make your refund policy easy to find. A customer who can easily reach you with a problem is far less likely to file a chargeback.

If I sell a variety of products, do I really need a Certificate of Analysis (COA) for every single one? Yes, and this is non-negotiable for any legitimate processor. A current, third-party COA is the only way to prove that each product you sell is legally compliant with the 0.3% THC threshold. Keeping these documents organized and ready to provide is a sign of a professional and trustworthy business. It’s a foundational requirement that protects both you and your payment partner, ensuring you can maintain a stable, long-term merchant account.

7 Best CBD Merchant Services for Reliable Payments