Top 5 Payment Gateways for Hemp (2025 Guide)

The term “high-risk” can feel like a judgment, but it isn’t a reflection of your business practices. It’s a category banks use for industries with more regulatory uncertainty, and it’s the main reason finding a stable payment gateway for hemp is so challenging. Many standard processors see the industry as too volatile and simply refuse to service it. This leaves countless legitimate business owners searching for a solution. In this article, we’ll demystify the high-risk label, explain the compliance hurdles, and walk you through how to secure a payment partner who truly understands and supports your business.

Key Takeaways

Focus on Processors Built for Hemp: The “high-risk” label isn’t a reflection of your business; it’s a result of complex banking and legal rules. The most effective approach is to partner with a specialized processor who already understands and is equipped to handle the industry’s specific challenges.
Prioritize Stability Over the Lowest Rate: A reliable payment gateway offers more than just a competitive fee. Look for a true partner with robust fraud protection, chargeback management tools, and seamless e-commerce integrations to ensure your revenue is secure and your operations run smoothly.
Make Proactive Compliance Your Best Defense: Maintaining a healthy merchant account is an ongoing responsibility. Keep meticulous records like lab reports (COAs), ensure your marketing is free of unproven health claims, and provide excellent customer service to prevent chargebacks and build a trustworthy business.

Why Is Hemp Payment Processing So Complicated?

If you’ve tried to set up payment processing for your hemp or CBD business, you’ve likely hit a few roadblocks. It can feel frustrating when you have a legitimate product but can’t find a processor willing to work with you. The reality is that the hemp industry operates in a complex financial and legal environment. Traditional payment providers often aren’t equipped to handle the specific challenges, which is why finding a specialized solution is so important. Let’s break down exactly why getting paid in this industry is more complex than most.

Understanding the “High-Risk” Label

First, it’s important to know that the “high-risk” label isn’t a reflection of your business practices. Instead, it’s a category that banks and payment processors use for industries with a higher potential for chargebacks, fraud, or regulatory scrutiny. The main reason hemp and CBD businesses are classified as high-risk is the ongoing regulatory uncertainty surrounding these products. Because rules can change, many traditional processors see the industry as too volatile and simply refuse to service it. This leaves many legitimate business owners searching for a processor who understands the nuances of their industry and is willing to support them.

The Challenge of Banking and Legal Rules

The legal landscape for hemp and CBD products is a patchwork of federal and state laws that don’t always align. While the 2018 Farm Bill legalized hemp at the federal level, the FDA still has strict rules about how CBD products can be marketed, and each state has its own set of regulations. This ambiguous legal status makes many financial institutions nervous. They worry about the potential legal risks and compliance burdens, so they often choose to avoid the industry altogether. This caution from banks trickles down, making it difficult for hemp businesses to find reliable, long-term payment processing solutions.

Keeping Up with Compliance Requirements

Beyond the banking and legal hurdles, you also have to meet the strict compliance rules set by major card networks like Visa and Mastercard. These organizations have their own terms of service for CBD merchants, which you must follow to the letter. This includes providing clear and honest product labeling, avoiding unproven health claims in your marketing, and ensuring your checkout process is secure. A processor that specializes in high-risk industries will help you stay on top of these requirements, but the responsibility ultimately falls on you to run a compliant business. Failing to do so can result in fines or having your merchant account shut down without warning.

What to Look for in a Hemp Payment Gateway

Choosing a payment gateway for your hemp business isn’t like picking one for a coffee shop or a clothing boutique. Because the industry is considered high-risk, you need a partner who understands the landscape and is equipped to support you. The wrong choice can lead to frozen funds, a suspended account, and a major headache. To avoid that, focus on finding a processor that offers stability, security, and specialized support. Think of it as vetting a long-term business partner, not just signing up for a service. Here are the five key things to look for.

Find a Processor That Gets High-Risk

Many standard payment processors, including some of the biggest names out there, are hesitant to work with CBD and hemp companies. They often see the industry as a regulatory gamble and will deny applications or shut down accounts with little warning. That’s why your first step is to find a processor that specializes in high-risk industries. These providers understand the legal nuances and have banking relationships that can withstand the industry’s complexities. They won’t be spooked by your business model and are built from the ground up to provide stable, reliable payment processing for merchants just like you.

Prioritize Top-Notch Security

For any online business, security is crucial, but for a high-risk one, it’s everything. Your customers need to trust you with their sensitive payment information. A reliable hemp payment gateway must be fully PCI compliant, which is the industry standard for protecting card data. Look for features like tokenization and end-to-end encryption, which ensure customer data is secure from the moment of purchase. Processors designed specifically for the CBD industry build their systems to process payments safely and efficiently, giving both you and your customers peace of mind. Don’t settle for anything less than ironclad security.

Get Strong Fraud and Chargeback Protection

Hemp businesses can be a target for fraudulent activity and often face higher rates of chargebacks—when a customer disputes a charge with their bank. Traditional processors often cite this as a primary reason for avoiding the industry. A great high-risk processor will offer advanced fraud detection tools that can flag suspicious transactions before they go through. They should also provide robust chargeback management support, helping you dispute invalid claims and protect your revenue. This proactive protection is essential for maintaining a healthy merchant account and keeping your business running smoothly.

Check for E-commerce Platform Integrations

Your payment gateway needs to work seamlessly with the tools you already use to run your business. Before you commit, confirm that the processor offers a simple and reliable integration with your e-commerce platform, whether it’s Shopify, WooCommerce, BigCommerce, or another system. A clunky or complicated integration can lead to a frustrating checkout experience, abandoned carts, and lost sales. The best gateways provide plug-and-play solutions that make it easy to connect your store and start accepting payments without needing a developer. This ensures your online operations run without a hitch.

Confirm Support for All Your Sales Channels

Do you sell products exclusively on your website, or do you also have a physical storefront, attend trade shows, or take orders over the phone? Your payment processor should be able to handle transactions wherever you make a sale. Look for a provider that offers a unified solution for both online and in-person (point-of-sale) payments. This omnichannel approach allows you to manage all your revenue streams from a single dashboard, simplifying your accounting and giving you a complete picture of your business performance. A flexible processor ensures you can grow and diversify your sales channels without outgrowing your payment infrastructure.

The Top Payment Gateways for Hemp & CBD

Finding a payment gateway that truly understands the hemp and CBD space can feel like searching for a needle in a haystack. The good news is, there are excellent providers out there who specialize in supporting high-risk businesses like yours. To make your search easier, I’ve put together a list of the top payment gateways that offer reliable, secure, and compliant solutions for the hemp industry.

Borderfree Payments

Borderfree Payments is built from the ground up to serve high-risk industries, and they have deep expertise in the hemp sector. They focus on providing specialized payment solutions that tackle the exact regulatory and financial hurdles your business faces every day. Instead of trying to fit your business into a one-size-fits-all model, they offer a tailored approach. This makes them a solid choice if you’re looking for a partner who understands the complexities of the hemp landscape and can help you secure stable, long-term payment processing. Their focus on this niche means you get support from a team that’s already familiar with your industry’s challenges.

Square

You might know Square for its little white card readers, but they’ve also carved out a space in the CBD industry. Square offers secure payment processing specifically for businesses selling CBD products both online and in-person. They understand the unique rules and compliance needs that come with selling CBD and provide clear guidelines to help merchants operate successfully. Because they have a dedicated program for CBD, you won’t have to worry about sudden account freezes or vague policies. It’s a familiar platform with the added benefit of services tailored to the specifics of your industry, making it a strong contender for many hemp businesses.

Nomupay

If you’re tired of hearing “no” from payment processors, Nomupay is worth a look. They provide specialized payment gateways and merchant accounts designed for CBD businesses. What really makes them stand out is their promise of a 100% approval rate for CBD merchant accounts, which can be a huge relief for entrepreneurs who have struggled to get approved elsewhere. This commitment removes a major barrier to entry and shows they are serious about serving the hemp industry. For businesses that need a reliable green light to start processing payments, Nomupay offers a direct and confident solution that’s hard to ignore.

PayPal

While many mainstream processors have stayed away from CBD, PayPal has started to open its doors to higher-risk industries. It’s not a guaranteed solution for everyone, but they have begun offering services that can help hemp businesses manage their payments. This shift makes PayPal an interesting option, especially for merchants who want to use a widely recognized and trusted platform. Navigating their requirements is key, but for some businesses, using PayPal can be a way to demystify CBD payment solutions and offer customers a familiar checkout experience. It’s a sign that the payment landscape is slowly becoming more accommodating.

Specialized High-Risk Processors

Beyond the big names, there’s a whole category of processors that focus exclusively on high-risk industries like hemp and CBD. Partnering with one of these high-risk payment processing companies is often the most stable and reliable path forward. These specialists understand the industry’s unique challenges, from shifting regulations to chargeback risks, and build their services around them. They offer tailored underwriting, fraud protection, and support that you just can’t get from a standard processor. While they might not be household names, their expertise can be the key to securing a merchant account that supports your business’s long-term growth without unexpected interruptions.

Understanding the Costs of Hemp Payment Processing

Figuring out payment processing costs can feel like trying to solve a puzzle, especially in the hemp industry. Because hemp is considered “high-risk,” the pricing structure isn’t always as straightforward as it is for a standard online boutique. But don’t let that intimidate you. The key is knowing what to look for so you can find a partner who is transparent about their pricing and helps you keep more of your hard-earned revenue.

Many traditional payment processors are still hesitant to work with CBD companies due to perceived risks, leaving these businesses in search of specialized solutions. This scarcity gives specialized processors more leverage on pricing, but it also means they understand your business needs better than a one-size-fits-all provider. Your total cost is more than just the percentage taken from each sale. It’s a combination of transaction rates, recurring monthly fees, and other incidental charges that can vary significantly between providers. Understanding these components is the first step toward building a predictable financial model for your business. Before you even start comparing rates, it’s crucial to get a complete picture of a processor’s entire fee schedule. Let’s break down the three main cost areas you’ll encounter so you can budget accurately and avoid any surprises on your monthly statement.

Breaking Down Transaction Fees

The most common fee you’ll encounter is the transaction fee, which is the cost you pay on every single sale. This is usually a percentage of the transaction amount plus a small flat fee (for example, 2.9% + $0.30). For hemp businesses, this rate is often higher than standard retail because processors take on more financial risk. They price that risk into your rate.

You might see different pricing models, like interchange-plus or flat-rate. An interchange-plus model is often more transparent, as it shows you the base cost from the card networks and the processor’s markup separately. Always ask for a clear explanation of how your transaction fees are calculated so you know exactly where your money is going.

Factoring in Monthly and Setup Costs

Beyond the cost of each transaction, you’ll also need to account for recurring and one-time fees. Choosing the right payment processor is vital for CBD merchants, and a big part of that choice involves understanding the total cost of ownership, not just the per-sale rate. These fees can add up, so it’s important to get a complete picture from the start.

Look for things like a monthly gateway fee, which gives you access to the payment technology, or a monthly statement fee. Some processors also charge a one-time setup or application fee to get your account established. Make sure to ask for a full fee schedule before you sign anything. This will help you avoid unexpected charges and ensure you’re working with a transparent partner.

Watch Out for Hidden Fees

This is where you need to be your own best advocate. Because many financial institutions view the hemp industry as high-risk, some processors might bury extra charges in the fine print of your contract. These “hidden” fees can quickly eat into your profits if you aren’t paying close attention.

Common examples include high chargeback fees (a penalty you pay when a customer disputes a charge), early termination fees if you decide to leave your contract ahead of schedule, and batch fees for settling your daily transactions. The best way to protect your business is to carefully read your merchant agreement and ask direct questions about any fees you don’t understand. A trustworthy processor will be happy to explain every line item.

Staying Compliant: A Checklist for Hemp Businesses

Running a hemp business means you’re not just a retailer; you’re also a compliance manager. The rules for selling hemp and CBD products are constantly changing, and staying on top of them is crucial for keeping your business running smoothly. Think of compliance as the foundation of your relationship with your payment processor. When you can prove you’re following the rules, processors see you as a reliable partner, which is essential in a high-risk industry.

Getting your compliance in order from day one saves you from future headaches like frozen funds or a terminated merchant account. It’s not a one-and-done task but an ongoing commitment to operating responsibly. This checklist will walk you through the key areas you need to focus on to keep your business, and your payment processing, secure.

Balancing Federal vs. State Regulations

The biggest compliance challenge for hemp businesses is the difference between federal and state laws. While the 2018 Farm Bill legalized hemp at the federal level (as long as it contains less than 0.3% THC), states have their own set of rules. Some states are completely open to CBD, while others have strict restrictions on the types of products you can sell. This patchwork of regulations creates a tricky environment. You need to understand the laws not only in the state where your business is based but also in every state you ship to. A product that’s perfectly legal in one state could be prohibited in another, putting your entire operation at risk if you’re not careful.

Getting Your Documentation and Lab Tests in Order

Before a high-risk processor will even consider working with you, they’ll want to see your paperwork. Be prepared to provide detailed documentation, including your business licenses and up-to-date lab results for every product you sell. These lab reports, known as Certificates of Analysis (COAs), verify your products’ cannabinoid content and confirm they are below the 0.3% THC legal limit. Having these documents organized and ready to go shows processors that you’re a serious, transparent business. It’s their way of performing due diligence to satisfy their own banking partners and the major card network guidelines from Visa and Mastercard.

Handling Age Verification and Product Rules

How you market and sell your products is just as important as what’s in them. Your website must have a reliable age verification gate to prevent sales to minors. Beyond that, your product labels and marketing materials need to be clear, honest, and compliant. The FDA has strict rules against making unproven health claims about CBD. Promising that your product can cure, treat, or prevent any disease is a fast track to getting your account shut down. Make sure your labels accurately list all ingredients and THC content to comply with both federal and state CBD payment terms. Honesty and transparency are your best tools for building trust with customers and processors alike.

Common Myths About Hemp Payment Processing (Debunked)

Running a hemp business means hearing a lot of conflicting information about payments. It’s easy to get tripped up by misconceptions that can lead to frozen funds or sudden account shutdowns. Let’s clear the air and debunk some of the biggest myths so you can find a payment solution that truly supports your business.

Myth: Any Processor Will Accept CBD

It’s a common assumption: since CBD products are everywhere, any payment processor should be fine with them. Unfortunately, that’s not the case. Many mainstream processors still classify CBD as a prohibited category in their terms of service due to the industry’s complex legal landscape and perceived risks. This is why you can’t just sign up for a standard account; you need a processor that has explicitly built its services to support CBD businesses and understands the industry’s unique challenges.

Myth: “Legal” Means Easy Processing

The 2018 Farm Bill was a huge step forward, legalizing hemp at the federal level. However, this didn’t create a free-for-all for payment processing. Financial institutions still view the hemp and CBD industry as high-risk because of the patchwork of state laws and evolving regulations. Banks are cautious about regulatory scrutiny and potential compliance issues. This high-risk designation means you need a specialized provider that is comfortable with the industry and can ensure your payment processing is secure.

Myth: All High-Risk Processors Are the Same

Finding a “high-risk” processor is a good first step, but not all are created equal. The term covers many industries, from online gaming to travel, and a processor specializing in one area won’t have the expertise for a hemp business’s specific compliance needs. You need a partner who understands the nuances of your industry, including requirements for lab reports, THC content limits, and acceptable marketing claims. A generic high-risk processor can leave you just as vulnerable as a standard one.

Myth: Approval Is the Final Hurdle

Getting approved for a merchant account feels like the finish line, but it’s really just the start. The goal is to maintain a stable, long-term processing relationship. High-risk accounts are subject to ongoing monitoring, and your account can be terminated if chargeback rates spike or you violate the processor’s terms. This is why it’s important to find a true partner, not just a provider. A good processor offers tools and support to help you manage chargebacks, stay compliant, and secure reliable payment services for the long haul.

What Payment Methods Should Your Hemp Business Accept?

Deciding which payment methods to offer is more than just a logistical choice—it directly impacts your customer experience and conversion rates. While offering a variety of options is ideal, the hemp industry faces unique hurdles that can limit your choices. The key is to balance customer convenience with what’s feasible and secure for your business. By understanding the pros and cons of each method, you can build a payment stack that keeps your customers happy and your business protected. Let’s walk through the most common options and what you need to know about each one.

Credit and Debit Cards

For most online shoppers, paying with a credit or debit card is second nature. It’s fast, familiar, and what they expect. As a hemp business, accepting cards is essential for meeting customer expectations and maximizing sales. However, this is where many businesses run into trouble. Because of regulatory gray areas, many traditional payment processors are hesitant to work with CBD companies. This is why finding a processor that specializes in your industry is so important. The right partner will ensure your payments are processed safely and efficiently, without the risk of a sudden account shutdown.

ACH and Bank Transfers

Automated Clearing House (ACH) payments, or direct bank transfers, are a fantastic alternative to card payments. Instead of relying on card networks, an ACH transfer moves money directly from your customer’s bank account to yours. This method is often more stable for high-risk industries because it sidesteps some of the restrictions imposed by major card brands. For businesses struggling to secure reliable cannabis credit card processing, ACH offers a secure and dependable way to accept payments. It also typically comes with lower transaction fees and a significantly lower risk of chargebacks, which is a huge win for any business owner.

Digital Wallets and Other Payment Options

Digital wallets like Apple Pay and Google Pay are gaining popularity for their convenience and security. While it’s a common myth that these options are off-limits for the hemp industry, they are possible under the right conditions. Your ability to accept digital wallets depends entirely on your payment processor and their banking relationships. The ongoing regulatory uncertainty means not all high-risk processors can support them. When vetting a payment gateway, be sure to ask specifically about their digital wallet capabilities. It’s a great way to offer a modern, seamless checkout experience if your processor can make it happen.

How to Lower Your Payment Processing Risks

Running a hemp business means you have to be extra diligent about managing risk. A high chargeback rate or compliance misstep can put your entire payment processing relationship in jeopardy. The good news is that you have a lot of control here. By being proactive and putting the right systems in place, you can protect your business, keep your payment gateway happy, and focus on growth. It all comes down to implementing strong security, managing chargebacks before they happen, and keeping your records in perfect order.

Implement Strong Security Measures

First things first: you need a payment processor that understands the unique challenges of the hemp industry. A generic processor won’t cut it. You need a partner who is equipped to handle high-risk transactions securely and efficiently. This isn’t just about finding someone who will approve your account; it’s about finding a high-risk payment solution that actively protects you.

Beyond your processor, your own practices matter. Major card networks like Visa and Mastercard require absolute clarity in your product labeling and marketing. Make sure your product descriptions are accurate, your lab results are accessible, and you aren’t making any unapproved health claims. This transparency builds trust with customers and ensures you meet compliance standards from day one.

Manage Chargebacks Effectively

Chargebacks are a major reason why many traditional processors avoid the hemp industry. A high number of disputed charges signals risk, and it can quickly lead to a terminated account. The best way to handle chargebacks is to prevent them from happening in the first place. Start by working with a processor that offers advanced fraud protection tools to screen for suspicious transactions.

On your end, focus on clear communication. Ensure your product descriptions are detailed and honest, your shipping times are realistic, and your return policy is easy to find. Most importantly, provide outstanding customer service. An easy-to-reach support team can resolve a customer’s issue before they feel the need to dispute the charge with their bank.

Keep Meticulous Transaction Records

In a high-risk industry, documentation is everything. Your payment processor will need to see detailed records to approve and maintain your account. Be prepared to provide everything from your business licenses to Certificates of Analysis (COAs) for every product you sell. Keeping these documents organized and readily available will make your life infinitely easier during underwriting and any future account reviews.

Think of your record-keeping as a core part of your compliance strategy. These documents prove that you’re running a legitimate, transparent business. A good CBD payment processing partner will guide you on exactly what’s needed, but it’s up to you to maintain those records. This diligence not only keeps you compliant but also provides a paper trail to help fight any unjust chargebacks.

How to Choose the Right Payment Gateway for Your Business

Picking a payment gateway is one of the most critical decisions you’ll make for your hemp business. It’s not just about finding the lowest rate; it’s about finding a true partner who understands the unique challenges of your industry. The right gateway will provide stability, security, and the flexibility you need to grow, while the wrong one can lead to frozen funds, surprise account closures, and a lot of headaches.

Because the hemp and CBD space is considered high-risk, you can’t just sign up for the first processor you find on Google. You need a provider that is specifically equipped to handle your business. This means they have the right banking relationships, compliance protocols, and fraud prevention tools to keep your transactions flowing smoothly. Let’s walk through the key factors to consider so you can make a choice that protects your business and supports your long-term goals.

Define Your Business Needs

Before you start comparing providers, take a moment to map out exactly what your business needs. A generic payment solution won’t cut it here. Many traditional payment processors are still hesitant to work with CBD companies, which means you need to find specialized solutions built for your industry.

Start by asking yourself a few questions: Where do you sell your products? Is it exclusively online, at a physical retail store, or both? Do you plan to offer subscriptions or sell internationally? Make a list of your must-haves. This clarity will help you quickly filter out providers that aren’t a good fit and focus on the ones that can truly support your business model from day one.

Evaluate a Processor’s Reliability and Support

When you’re running a business, payment issues can bring everything to a halt. That’s why reliable customer support is non-negotiable. You want a partner you can reach easily when you have a question or run into a problem. Look for a company that offers strong support, ideally with access to real people via phone or live chat.

Beyond just troubleshooting, think about how a processor can streamline your operations. Find a provider that can handle sales both online and in your physical store through a unified system. Managing all your transactions in one place saves you time and gives you a clearer picture of your business’s financial health. This kind of integrated support is a sign of a processor that’s invested in your success.

Compare Fee Structures and Contracts

Fees can be confusing, but it’s crucial to understand exactly what you’ll be paying. Don’t just look at the advertised transaction rate. Ask for a full breakdown of all potential costs, including monthly fees, setup charges, chargeback fees, and any penalties for not meeting compliance standards. Hidden fees can quickly eat into your profits, so transparency is key.

Remember, financial institutions often view the hemp industry as payment processing high risk, which can be reflected in your contract terms and fee structure. Read the fine print carefully. Pay attention to the contract length, termination clauses, and any policies related to holding your funds. A reputable processor will be upfront about all costs and terms.

Frequently Asked Questions

Why can’t I just use a standard processor like Stripe or PayPal for my hemp business? While it seems like the easiest route, most standard processors have strict terms of service that prohibit businesses in industries they consider high-risk, including hemp and CBD. This is because their internal risk models aren’t set up to handle the complex legal and compliance landscape of the industry. Using one of these processors, even if you get approved initially, puts you at constant risk of having your account suddenly frozen or shut down once they realize the nature of your business.

My application for a merchant account was denied. What are my next steps? First, don’t get discouraged—this is a common experience for many hemp entrepreneurs. A denial from a standard processor is often a sign that you need to shift your search toward providers who specialize in high-risk industries. Take it as an opportunity to gather all your compliance documents, like your business licenses and product lab reports (COAs), so you’re fully prepared. Then, focus your search on payment gateways that openly advertise their services for the CBD and hemp industry, as they will have the right banking relationships and expertise to support you.

Are the higher processing fees for hemp businesses permanent? The higher fees you see are directly tied to the “high-risk” label. Processors charge more to cover the increased financial and regulatory risks they take on by serving the industry. As federal and state regulations become clearer and more standardized over time, the perceived risk will likely decrease. When that happens, we can expect to see processing rates become more competitive and fall more in line with standard e-commerce fees. For now, it’s a cost of doing business in a still-developing industry.

What’s the real difference between a generic “high-risk” processor and one that specializes in hemp? A generic high-risk processor might work with a wide range of industries, like online gaming or travel, but they may not understand the specific rules for hemp. A specialist, on the other hand, knows the ins and outs of your industry. They understand the importance of COAs, the nuances of marketing claims, and the patchwork of state laws you have to follow. This expertise means they can provide better guidance and are less likely to flag your account for issues that a non-specialist might misunderstand.

Besides choosing the right processor, what’s the most important thing I can do to protect my business from payment issues? Maintain meticulous records and prioritize transparency. Your best defense against chargebacks and compliance issues is to run an airtight operation. This means keeping your lab reports organized and accessible, ensuring your website and product labels are 100% accurate, and providing excellent, proactive customer service. When you can prove you’re a compliant and trustworthy business, you not only protect your merchant account but also build a stronger, more resilient brand.

The 5 Best Payment Gateways for Hemp in 2025