8 Best CBD Payment Processors for High-Risk Sales

Choosing a payment processor is one of the most foundational decisions you’ll make for your CBD company. It’s not just about finding a way to accept credit cards; it’s about selecting a long-term partner who understands the unique challenges and opportunities of your industry. The right partner provides more than a gateway—they offer robust security, proactive compliance monitoring, and the stability needed to scale your operations without fear of sudden shutdowns. This article is your comprehensive guide to making that choice. We will break down the essential features, compare the top providers, and give you a clear checklist for vetting each potential CBD payment processor to ensure you find a perfect fit for your business goals.

Key Takeaways

Accept the “High-Risk” Label for What It Is: This isn’t a reflection on your brand’s quality but a technical term used by banks due to regulatory uncertainty and chargeback potential. Understanding this allows you to seek out a specialized partner who is equipped to handle your business.
Focus on Features, Not Just Fees: The cheapest transaction rate isn’t always the best deal. Prioritize processors that offer essential tools like built-in compliance monitoring, advanced fraud prevention, and proactive chargeback management to protect your revenue and ensure long-term stability.
Treat Your Search Like a Partnership Interview: Don’t sign a contract without thoroughly vetting your processor. Test their customer support, confirm technical compatibility with your e-commerce store, and demand a transparent breakdown of all costs, including any rolling reserves or hidden fees.

Why Your CBD Business Is Considered “High-Risk”

If you’ve tried to set up payment processing for your CBD business, you’ve likely run into the term “high-risk.” It’s a label that can feel frustrating and even unfair, especially when you’re running a legitimate business with high-quality products. But this classification isn’t a reflection of your brand’s integrity or potential. Instead, it’s a technical term used by banks and payment processors to categorize industries with specific financial and regulatory characteristics that pose a greater potential for financial loss.

For CBD merchants, this label comes from a complex mix of factors, including evolving legal gray areas, higher-than-average chargeback rates, and general caution from the traditional banking world. In practice, being labeled high-risk can translate into higher processing fees, mandatory rolling reserves, and the constant threat of having your account frozen or shut down with little warning. It’s a significant hurdle that can stifle growth before you even get started. However, understanding exactly why your business falls into this category is the first step toward finding a payment solution that’s built to support you, not shut you down. By facing these challenges head-on, you can find a partner who sees your business as an opportunity, not a liability.

What Makes a Business “High-Risk”?

At its core, a business is labeled “high-risk” when financial institutions believe there’s an increased chance of financial loss, most often from chargebacks. For CBD companies, this can happen more frequently because customers might dispute a charge if they feel a product didn’t meet their expectations. The industry’s shifting legal landscape also contributes to this risk assessment. Banks and processors are cautious about industries where the rules can change. This caution leads them to classify CBD as high-risk, which means you need a specialized merchant account designed to handle these specific challenges, ensuring your payment flow remains stable and secure.

The Unique Challenges for CBD Merchants

The CBD industry faces a unique set of hurdles. Even though hemp-derived CBD was federally legalized by the 2018 Farm Bill, the legal status can still be confusing and varies from state to state. This regulatory ambiguity makes many traditional payment processors nervous. As a result, major players like Stripe and PayPal generally refuse to work with online CBD businesses, leaving many entrepreneurs without a way to accept payments. This forces CBD merchants to seek out processors who not only accept their business but also deeply understand the specific operational and compliance challenges that come with selling CBD products online.

Staying on Top of Industry Rules and Regulations

Keeping up with the web of rules for selling CBD is a full-time job. Regulations from the FDA, combined with state-specific laws and card network (like Visa and Mastercard) policies, create a complex compliance environment. Banks are still trying to figure out how to handle the industry, which is why finding a reliable payment partner is so difficult. A processor that isn’t an expert in the CBD space might approve your account, only to shut it down months later after a policy review. This is why it’s so important to partner with a processor that specializes in high-risk industries and has built-in tools to help you stay compliant with ever-changing regulations.

Must-Have Features for Your CBD Payment Processor

Choosing a 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 partner who understands the unique landscape you operate in. As you compare your options, make sure they check all of these boxes. A solid processor will provide the foundation you need to operate smoothly, stay compliant, and focus on growing your brand without constantly worrying about your payment infrastructure.

Advanced Security and Fraud Prevention

In any online business, protecting your customers’ data is a top priority. For CBD merchants, it’s even more critical. Because the industry is considered high-risk, you’re a bigger target for fraudulent activity. Your payment processor should act as your first line of defense. Look for features like tokenization and end-to-end encryption, which keep sensitive payment information safe from breaches. A great processor will also have robust, built-in fraud prevention tools that can detect and block suspicious transactions in real time. This not only protects your customers but also safeguards your business from the financial and reputational damage of fraud.

Built-in Compliance Monitoring

The rules and regulations surrounding the CBD industry are complex and can change with little notice. What’s compliant one day might not be the next. A processor specializing in high-risk industries should have compliance baked into its platform. They should be experts on the ever-shifting legal landscape, from federal laws like the 2018 Farm Bill to varying state-level restrictions. This means they can help ensure your transactions are always above board, automatically flagging issues that could put your merchant account at risk. This feature is invaluable, as it lets you focus on your business while your processor helps you stay on the right side of the industry regulations.

Reliable Chargeback Protection

Chargebacks are a headache for any merchant, but they can be fatal for a CBD business. High-risk industries often see higher rates of chargebacks, and too many can cause a processor to terminate your account. Your payment partner should offer more than just basic processing; they need to provide strong chargeback protection. The best processors have alert systems that notify you of a potential chargeback before it’s finalized, giving you a window to resolve the issue directly with the customer. Some even offer dispute management assistance, helping you fight illegitimate claims and protect your bottom line. This proactive approach is essential for maintaining a healthy merchant account.

Support for Multiple Currencies

As your CBD brand grows, you might set your sights on international markets. If global expansion is part of your plan, you’ll need a payment processor that can grow with you. Look for a partner that offers multi-currency support, allowing you to accept payments from customers around the world in their local currency. This not only simplifies the checkout process for international buyers but also helps build trust and can improve conversion rates. A processor that can handle transactions from dozens or even hundreds of countries gives you the flexibility to scale your business without having to switch payment providers down the road.

Seamless E-commerce Integrations

Your payment processor should work effortlessly with the tools you already use to run your business. Whether your online store is built on Shopify, WooCommerce, or another major platform, your processor needs to offer seamless e-commerce integrations. A smooth integration prevents technical glitches, ensures a fast and reliable checkout experience for your customers, and makes your life easier by centralizing your sales data. Before committing to a processor, confirm they have a proven, easy-to-install plugin or API for your specific e-commerce platform. This technical compatibility is non-negotiable for running an efficient online store.

Responsive and Knowledgeable Support

When an issue arises with your payments, you can’t afford to wait days for a response. In a high-risk industry, having access to expert support is crucial. Look for a processor that offers responsive and knowledgeable customer service, ideally with 24/7 availability. You want to be able to connect with a real person who understands the nuances of CBD payment processing. Test their support channels before you sign up. A partner who invests in quality customer support is a partner who is invested in your success. This relationship can be a lifesaver when you need to resolve an urgent issue quickly.

A Breakdown of the Best CBD Payment Processors

Finding the right payment processor can feel like searching for a needle in a haystack, but it doesn’t have to be. The key is to find a partner who truly understands the CBD industry and has built their services to address its specific challenges. A great processor won’t just handle your transactions; they’ll provide the security, compliance, and support you need to operate with confidence.

We’ve done the research for you and compiled a list of the top payment processors that welcome CBD businesses. Each of these providers offers something unique, whether it’s seamless e-commerce integration, a massive banking network, or specialized high-risk expertise. Let’s walk through the best options so you can find the perfect fit for your business goals.

Borderfree Payments

As specialists in the high-risk space, we built Borderfree Payments to give businesses like yours the stable, secure payment infrastructure you deserve. We don’t just tolerate high-risk merchants—we empower them. Our approach is centered on providing a customized payment solution that fits your specific business model, not a one-size-fits-all account that could be shut down without warning.

We combine robust fraud prevention tools with proactive compliance monitoring to protect your revenue and keep you aligned with evolving regulations. Our goal is to remove the payment barriers that hold CBD businesses back, offering reliable processing, multi-currency support, and expert guidance. We’re here to be your long-term partner, ensuring your payments flow smoothly so you can focus on growing your brand.

PaymentCloud

PaymentCloud has earned a strong reputation for serving high-risk industries, and they are a popular choice for CBD sellers. They are particularly well-regarded for their seamless integrations with major e-commerce platforms. As BigCommerce notes, PaymentCloud is a “well-known provider specializing in high-risk industries like CBD, offering seamless Shopify integration, fraud prevention, and chargeback management.”

This makes them a solid contender if your primary sales channel is an online store. Their focus on fraud and chargeback tools provides an essential layer of security that every CBD merchant needs. If you’re looking for a processor that can easily plug into your existing e-commerce setup, PaymentCloud is definitely worth considering.

PayKings

One of the biggest hurdles for CBD businesses is simply getting approved for a merchant account. PayKings tackles this problem head-on by working with an extensive network of acquiring banks. According to Electronic Merchant Systems, “PayKings works with over 20 banks, which gives you a better chance of getting approved for your CBD business.”

This wide network significantly improves your odds of finding a banking partner willing to support your business. They also promote a “fast approval” program specifically for CBD oil merchants, which can be a lifesaver if you need to get up and running quickly. For new businesses or those who have faced rejection before, PayKings’ extensive banking relationships can make all the difference.

Easy Pay Direct

If your CBD business is already established and handling a significant number of sales, Easy Pay Direct is a provider built to support that growth. They have years of experience working with high-risk businesses and have developed a platform capable of managing high sales volumes without flagging your account.

Their system is designed to handle payments from all major credit cards, and they offer a unique load-balancing feature that can distribute your transactions across multiple merchant accounts. This is especially useful for businesses with high monthly sales, as it reduces the risk of any single account being suspended for excessive volume. This makes them a strong choice for scaling your high-risk business successfully.

Square

Square is a household name in payment processing, and they have made a clear effort to support the CBD industry. They stand out by offering straightforward, transparent pricing and a versatile platform that works across different sales channels. According to Square, they help CBD businesses accept payments “online, in stores, through mobile apps, and with other popular selling tools like WooCommerce.”

Their promise of no hidden fees, monthly charges, or long-term contracts is a major plus for businesses that want flexibility and predictability. If you operate both an online store and a physical retail location, Square’s omnichannel solution can help you manage all your payments in one place, simplifying your operations significantly.

Nomupay

Nomupay is another processor that has carved out a niche by focusing specifically on the needs of CBD merchants. They offer both payment gateways and merchant accounts designed to help businesses navigate the complexities of the industry. As Nomupay explains, “They help CBD businesses, which are often seen as ‘high-risk,’ process credit and debit card payments safely and reliably.”

By concentrating on this vertical, they have developed expertise in the specific compliance and risk challenges that CBD sellers face. This specialization means you’re partnering with a team that understands your business from day one. For merchants who want a provider that is all-in on CBD, Nomupay’s dedicated payment gateways are a compelling option.

PayWize

PayWize is a payment processor that focuses on providing reliable merchant accounts to businesses in high-risk sectors, including CBD. Their main value proposition is delivering secure and stable payment solutions that protect merchants from the volatility often associated with high-risk processing. They emphasize building long-term relationships with their clients by offering personalized support and robust security features.

For a CBD business, this means access to advanced fraud detection suites and chargeback prevention tools designed to safeguard your revenue. If your top priority is finding a stable and secure merchant account that can withstand the scrutiny of the CBD market, PayWize offers a dependable and focused service worth exploring.

T1 Payments

T1 Payments specializes in serving high-risk merchants with a global footprint, making them an excellent choice for CBD businesses looking to sell internationally. They have built a reputation for their expertise in managing cross-border transactions and mitigating the risks that come with them. Their services are particularly strong in chargeback management, offering robust protection to help you keep more of your hard-earned money.

This focus on international payments and risk mitigation is critical for any CBD brand with ambitions beyond its domestic market. If you plan to scale globally or are already struggling with high chargeback ratios, the specialized support from T1 Payments could be exactly what you need to protect and grow your business.

Breaking Down the Costs of CBD Payment Processing

When you’re shopping for a CBD payment processor, it’s easy to get fixated on the transaction rate. But that single percentage is just one piece of the puzzle. To truly understand what you’ll be paying, you need to look at the entire fee structure, from monthly charges to the hidden costs of risk management. A processor that looks cheap on the surface might have other fees that eat into your profits over time. For a high-risk business where margins can already be tight, these hidden costs aren’t just an annoyance—they can be the difference between a profitable quarter and a loss.

Getting a clear picture of all potential costs upfront helps you forecast your finances accurately and avoid any unwelcome surprises on your monthly statement. A transparent processor will lay everything out on the table, which is a great sign that you’re dealing with a reputable partner. Let’s walk through the key costs you’ll encounter so you can ask the right questions and compare your options with confidence.

Decoding Transaction Fees

The most visible cost is the transaction fee, which is what you pay the processor for every sale you make. This is usually a percentage of the transaction amount plus a small flat fee. For example, a common structure might look like 3.8% + 30¢ for every online order. Because the CBD industry is considered high-risk, you can expect these rates to be higher than what a standard retail business pays. This premium covers the processor’s added risk. When comparing providers, make sure you’re looking at the specific rate they offer for CBD businesses, as a processor’s standard rates often don’t apply.

Understanding Monthly Charges

Beyond per-transaction costs, many processors have recurring monthly fees. These can include account maintenance fees, statement fees, or fees for using their payment gateway. While some modern platforms like Square’s CBD program have moved away from monthly charges, they are still common in the high-risk space. Always ask for a complete schedule of fees. A transparent processor will have no problem providing this, ensuring you know exactly what to expect on your bill each month. Don’t let a low transaction rate distract you from potentially high fixed costs that can steadily drain your revenue.

Factoring in Setup and Integration Fees

Getting your payment processing up and running can sometimes come with a one-time cost. Some companies charge a setup or application fee to open your merchant account. You might also see an integration fee for connecting the payment gateway to your e-commerce platform. The good news is that not everyone charges for this; for instance, some providers, like Nomupay, state they don’t have account setup fees. This is a great question to ask early in your conversations with potential partners, as a hefty setup fee can be a significant upfront expense for a new business.

The Cost of Chargebacks and Risk

Chargebacks are a major financial concern for any CBD merchant. A chargeback happens when a customer disputes a charge with their bank and requests a refund. Because the industry is still in a gray area for many consumers, CBD businesses often see a higher rate of these disputes. Processors charge a fee (typically $25 or more) for every chargeback you receive, even if you win the dispute. This is why choosing a processor with robust fraud detection and chargeback protection is so important—it’s a direct investment in protecting your bottom line from these costly and time-consuming issues.

What Is a Rolling Reserve?

Don’t be surprised if a processor mentions a “rolling reserve.” This is a common practice in high-risk industries. Think of it as a security deposit held by the processor to cover potential losses from chargebacks. The processor will hold back a percentage of your daily sales (e.g., 10%) for a set period (e.g., 180 days). While this money is eventually released back to you on a rolling basis, it can impact your cash flow. The terms of a rolling reserve are often negotiable, so be sure to discuss the percentage and holding period before you commit.

Reading the Fine Print: Contract Terms

Finally, the merchant agreement is your source of truth. This legal document outlines all your rates, fees, and obligations. Pay close attention to the contract length, any penalties for early termination, and the specific rules for selling CBD products. For example, your contract will likely require you to comply with federal law, such as ensuring all products contain less than 0.3% THC. Before you sign anything, read every line and ask for clarification on anything you don’t understand. A trustworthy partner will be happy to walk you through their terms to ensure you’re both on the same page.

How to Choose the Right CBD Payment Processor

Selecting a payment processor is one of the most important decisions you’ll make for your CBD business. It’s about more than just accepting payments; it’s about finding a true partner who understands the landscape and is invested in your success. The right processor provides stability, security, and the foundation you need to grow without worrying about sudden account freezes or closures. As you evaluate your options, think of it as a hiring process. You’re looking for an expert with a proven track record in the high-risk space who can handle the unique challenges of the CBD industry. Focus on these key areas to find a processor that will support your business for the long haul.

Verify Their Compliance Tools

The CBD industry is a maze of ever-changing rules. A processor that isn’t an expert in this area is a liability. You need a partner who can help you stay on the right side of regulations, not one who will shut down your account at the first sign of trouble. Ask potential processors how they monitor compliance. Do they have built-in tools that flag products that violate state-specific laws? How do they stay current with federal and banking regulations? A processor that truly understands the CBD industry will have clear, confident answers and a system designed to protect your business from compliance-related risks.

Check for Technical Compatibility

Your payment processor should fit seamlessly into your existing operations. If the integration process is clunky or requires extensive custom development, it will drain your time and resources. Before you commit, confirm that the processor’s gateway integrates smoothly with your e-commerce platform, whether it’s Shopify, WooCommerce, or another solution. Ask about their API, the documentation they provide, and whether their support team can assist with the setup. A smooth technical connection means a better checkout experience for your customers and fewer headaches for you, allowing you to focus on running your business instead of fixing broken tools.

Match Their Capacity to Your Sales Volume

Your sales volume has a direct impact on the processing rates you can secure. Some processors offer better terms for businesses with higher transaction volumes, while others specialize in supporting startups. Be upfront about your current and projected monthly sales. If you’re a high-volume merchant processing over $250,000 annually, you may be able to negotiate custom, lower rates. On the other hand, if you’re just starting out, you’ll want a partner with transparent, predictable pricing that won’t penalize you for low volume. Find a processor whose model aligns with your business size and growth trajectory.

Assess Their Risk Management Features

As a high-risk merchant, you are a prime target for fraud and chargebacks. Your payment processor should be your first line of defense. Ask detailed questions about their security and risk management tools. Do they offer advanced fraud detection that uses AI to spot suspicious transactions? What does their chargeback management program look like? A great partner will provide robust tools and support to help you prevent chargebacks before they happen and fight illegitimate ones effectively. These features are not just nice to have; they are essential for protecting your revenue and maintaining a healthy merchant account.

Test Their Customer Support

When a payment issue arises, you can’t afford to wait days for a response. Before signing a contract, put their customer support to the test. Give them a call, send an email, or start a live chat session. How quickly do they respond? Are you speaking with a knowledgeable representative who understands the CBD industry, or a generic call center agent? The quality of a processor’s customer support is a strong indicator of how they’ll treat you once you’re a client. Look for a team that is responsive, helpful, and ready to act as a true partner when you need them most.

Review Your Contract Before Signing

The fine print in your merchant agreement can make or break your experience. Before you sign anything, read the entire contract from start to finish. Pay close attention to the terms regarding contract length, early termination fees, and rolling reserves. Are there any hidden monthly fees or unexpected rate increases? A reputable processor will be transparent about their terms and willing to walk you through the contract. If anything seems unclear or unfair, don’t hesitate to ask for clarification or have a legal professional review it. This final step ensures you’re entering a fair partnership with no surprises down the road.

Frequently Asked Questions

Why can’t I just use a standard processor like Stripe or PayPal for my CBD sales? While it might seem easier to go with a household name, major processors like Stripe and PayPal have strict policies that prohibit sales of CBD products. Their internal risk assessments and banking relationships are not set up to handle the regulatory complexities of the industry. Attempting to use them often leads to your account being abruptly frozen or shut down, which can halt your sales and put your revenue at risk. It’s essential to work with a processor that explicitly and knowingly supports CBD businesses from the start.

What exactly is a rolling reserve, and is that money gone for good? Think of a rolling reserve as a temporary security deposit that your processor holds to protect against potential chargebacks. It’s not gone forever. The processor holds a small percentage of your sales for a predetermined period, usually around 180 days, and then releases the funds back to you on a “rolling” schedule. While it does affect your immediate cash flow, it’s a standard practice in high-risk industries that allows processors to offer you stable, long-term merchant accounts.

My business is brand new and very small. Do I really need to worry about advanced features like chargeback protection right away? Yes, absolutely. In fact, new businesses are often the most vulnerable. A few unexpected chargebacks can be financially devastating when you’re just starting out. Proactive features like fraud detection and chargeback alerts aren’t just for large companies; they are fundamental tools that protect your revenue and the health of your merchant account from day one. Investing in a processor with these protections is one of the smartest moves you can make to ensure your business survives and thrives.

If I get approved by a processor, does that mean my business is fully compliant? Not necessarily. Getting approved for a merchant account is a critical first step, but it doesn’t absolve you of your own compliance responsibilities. A good high-risk processor will provide tools and guidance to help you stay within the rules, but you are still ultimately responsible for ensuring your products, marketing claims, and business practices adhere to all federal, state, and local laws. Think of your processor as a partner in compliance, not a replacement for your own due diligence.

Are the higher processing fees for CBD businesses negotiable? In some cases, yes. While you can generally expect to pay higher rates than a low-risk business, there can be room for discussion, especially as your business grows. Factors like your sales history, monthly processing volume, and chargeback ratio can give you leverage. If you have a proven track record of stable sales and low risk, you can certainly approach your processor to discuss a rate review. It never hurts to ask, especially when you have the data to back up your request.

Top 8 CBD Payment Processors for High-Risk Businesses