What to Know about CBD Hemp & Ancillary Cannabis Payment Processing
Want to sell CBD or Hemp products online, but don’t know where to find a secure CBD merchant account or a reliable hemp product payment processing system to use?
Well, you’re not alone. CBD businesses often face difficulty when it comes to payment processing due to several reasons, including reputational risk, legislation, and risk of chargebacks.
In some cases, traditional banks and payment processors may be reluctant to provide services for these businesses due to the potential regulatory issues associated with processing transactions that involve cannabis-related products.
One of the best ways to address these challenges is by working with an established CBD merchant processor that can provide specialized solutions for handling payments. By choosing a reliable CBD payment processor, businesses can ensure their operations run smoothly, without the legal hassles or banking issues typically associated with this high-risk industry. A merchant account that accepts CBD is essential for handling the complexities that come with processing payments for CBD products, and it’s important to choose a provider equipped to meet the industry’s specific needs and challenges.
Credit card processors may impose restrictions regarding the types of products they are willing to take payments for. Many processors also have inadequate security measures in place, which can present risks for both business owners and customers.
The good news is that Vector Payments is an established leader in CBD payment processing for CBD hemp and ancillary cannabis businesses. We know how to navigate the strict regulations surrounding the industry.
Our team is dedicated to fighting for our clients and working alongside processors to create win-win scenarios for everyone involved. We understand the challenges faced by high-risk industries, so you can rest assured knowing that we’ll always do our best to ensure your business has all it needs to succeed. If you’re running a smoke shop and need hassle-free payment solutions, check out our smoke shop payment processing options as well.
What Is a High-Risk Online Payment?
High-risk online payments involve processing high-value or higher-liability transactions in a secure manner. Processors that support high-risk merchants build in extra safeguards, such as advanced encryption and two-factor authentication, to ensure every transaction is completed safely.
Industries like CBD and hemp are classified as high-risk because of factors like chargeback exposure, regulatory uncertainty, and reputational risk, not because of anything wrong with the products themselves.
Why the CBD Hemp and Ancillary Cannabis Industries are Viewed as High-Risk
Businesses in the CBD, hemp, and ancillary cannabis industries are viewed as high-risk merchants due to the:
- Ever-changing state or Federal laws
- Lack of banking services available to cannabis businesses
- Fact that cannabis products have not yet been fully regulated by the federal government
Even though the industry is growing in popularity and acceptance, there are still many obstacles that need to be addressed before it can become widely accepted and considered mainstream. Laws at both the state and federal level continue to change frequently, making it difficult for businesses to keep up with all of them.
Many payment processing systems are unwilling to provide services to cannabis-related businesses due to the perceived legal risks associated with such activities. This makes it difficult for many businesses within this sector to obtain traditional financing or open bank accounts needed for everyday operations.
Since cannabis has not yet been fully legalized at a federal level in the U.S., there are still many questions surrounding potential regulations, banking access, and long-term policy direction. That uncertainty is one of the biggest reasons payment processors treat CBD and hemp as high-risk.
However, despite these challenges, finding a reliable CBD merchant service provider and secure CBD payment gateway is essential for businesses in this industry to facilitate transactions and navigate the complex regulatory landscape.
That’s why it’s crucial for CBD and ancillary cannabis companies to use high-risk merchant accounts that are configured to process CBD payments and similar types of transactions. Partnering with a specialized merchant service provider can ensure the seamless operation of the credit card processing services your business relies on every day.
U.S. Restrictions on the Sale of CBD or Hemp Products
As of 2023, the Food and Drug Administration (FDA) has stated that CBD cannot be considered a dietary supplement or food additive. Therefore, the FDA does not have any plans to regulate CBD in the near future.
The laws surrounding CBD vary depending on the state. In most states, CBD is legal as long as it has less than 0.3% THC – which is the psychoactive ingredient.
As you can see, the laws and regulations surrounding CBD are ambiguous and borderline confusing. That’s one of the reasons why it’s a high-risk industry.
How Payment Processors Can Help the CBD & Hemp Industries
Payment processors are essential for the CBD and hemp industry to operate legally. By providing payment processing services, processors help CBD and hemp businesses accept credit and debit card payments without worrying about being penalized by banks or other financial institutions that may not work with businesses in this industry.
By choosing the right CBD payment processing partner, businesses in the CBD industry can accept payments both in-store and online, safely transfer funds, and gain access to other financial services such as business funding.
Payment processing for CBD transactions also helps facilitate compliance with requirements like tracking customer purchases, reporting suspicious activity, and verifying age for certain product sales. Payment processors provide an essential service for CBD merchants by allowing them to accept payments legally and safely. Ultimately, finding the right payment processor can be a real asset for businesses operating within the CBD and hemp industries, offering increased convenience and security while providing valuable insights into customer behavior.
What You Can Sell With a CBD & Hemp Merchant Account
With a CBD and Hemp merchant account, you can offer your customers a reliable, secure, and compliant payment solution for all their processing needs.
Using a trusted payment processor allows you to maximize your reach while minimizing risk, all while protecting your CBD business from fraudulent activity or chargebacks.
Some of the CBD and Hemp products we are currently supporting include:
- Teas
- Skincare
- Hemp oil (Pure isolate or Full spectrum)
- Pain relief sprays
- Supplements and capsules
- CBD pet products
- Edibles including gummies, chocolate, and lollipops
- Delta derived products (D8, D10, HHC, etc.)
How to Accept Credit Card Payments For CBD & Hemp Products
Accepting credit cards is a convenient and secure way to process payments for CBD and hemp products. By accepting credit card payments, you open the door for more customers, allowing them to make purchases without any hassle. This makes it easier for your business to succeed and grow in the long term. Consumers historically buy more products each time when they have the ability to use their credit cards and get their rewards points.
Starting a CBD or Hemp Business? Set Up the Right Payment Processor
If you’re just getting your CBD or hemp brand off the ground, setting up a compliant high risk merchant account from day one is essential to ensure smooth and secure transaction processing. Read our guide on starting a CBD or hemp brand payment processor to learn what you’ll need before you apply.
Switching Payment Processors for Your CBD or Hemp Brand
If your current processor is holding funds, declining transactions, or was never built to support CBD and hemp sales, switching to a properly underwritten high risk merchant account can resolve the instability. Learn how to make the transition smoothly in our guide on switching payment processors for a CBD or hemp brand.
Why Choose Vector Payments?
If you’re in the business of hemp or CBD products, Vector Payments is the right choice for your payment processing needs. We offer a secure and reliable experience, with top-of-the-line encryption protocols to ensure your customers’ data remains safe, along with 0% processing, dual pricing, and surcharging options to help offset the cost of accepting cards.
Our experienced team can help you set up your account quickly, so you can start selling without missing a beat. We created our CBD merchant account platform to help businesses like yours thrive.
Our competitive rates make it easy to keep more money in your pocket. With Vector Payments on your side, you get the security and reliability needed to grow and succeed.
Compliant POS and Terminal Solutions
Vector Payments can help you streamline your retail storefront operations. We consult on multiple Point-of-Sale (POS) options to help you add inventory, manage employee time clocks, record sales tax, and more. Plus, our POS solution partners are payments agnostic, which means you are NOT locked to 1 processor or another, YOU have complete control that we help guide you through.
If you’re not looking for a POS but need the ability to accept cards, we also provide free terminal placement in your store.
With our terminals, you can accept all major debit and credit cards – including ApplePay, SamsungPay, and GooglePay – so your customers can make payments quickly and securely.
We’re also integrated with many popular e-commerce platforms, such as Shopify, WordPress/WooCommerce, BIGCommerce, WIX, and Magento.
Monitoring Changes Appointed by the Acquiring Banks
At Vector Payments, we’re here when you need us. We provide 24/7 dedicated support – so you can count on us to be available around the clock. Plus, you’ll get a dedicated account specialist to help you 7-days a week as well who actually knows you and your company for the personal approach.
Our specialists are dedicated to your business and equipped to handle your account correctly. We’ll continuously monitor to ensure that your operations are running smoothly so you can rest easy knowing that your business is in good hands.
Maintaining Compliance With Onsite Changes
At Vector Payments, we understand the importance of staying current with industry regulations, which is why we’re committed to helping our merchants always stay up-to-date.
We’re always dedicated to making sure your account stays compliant as fast and efficiently as possible. With us as your partner, you can have confidence knowing that you always comply with the latest regulations.
Secure MOTO and In-House Integrated Payment Gateways
Vector Payments’ online payment gateway is the perfect way to keep your customers’ data safe. You can send invoices, store customer data for recurring charges that are compliant with PCI standards, or use our free mobile app to process payments on the fly; without ever compromising your data security.
Risk Monitoring Solutions to Help Detect and Prevent Fraud
CBD credit card processing comes with its own set of risks. Vector Payments employs advanced monitoring solutions to catch any suspicious activity and help prevent fraud. With our top-of-the-line fraud prevention system, you can rest assured that your business and customers are safe with us.
We also have partnerships with the top chargeback assistance companies in the USA, so if your account ever needs help with reducing your disputes, we’re here to help!
High-Risk vs. Standard Payment Processing for CBD & Hemp Businesses
Standard / Low-Risk Processors
- Accounts frozen or shut down without warning once a processor discovers CBD or hemp products
- Funds held during risk reviews, often with little explanation
- Not underwritten for cannabis-derived product categories
- Limited or no support for chargeback dispute management
- No fraud monitoring built for cannabis-related risk factors
Vector Payments High-Risk CBD & Hemp Accounts
- Underwriting built specifically for CBD, hemp, and ancillary cannabis products
- Advanced fraud monitoring and chargeback dispute support included
- 0% processing, dual pricing, and surcharging to offset costs
- Support for in-store, online, and MOTO transactions
- Dedicated support and account stability built for cannabis-adjacent businesses
Frequently Asked Questions
CBD and hemp businesses are viewed as high-risk due to shifting state and federal regulations, limited access to traditional banking, and the fact that cannabis-derived products aren’t yet fully regulated at the federal level. These factors make mainstream processors like Stripe and PayPal reluctant to work with the industry.
Most standard processors explicitly prohibit CBD and hemp-derived products in their terms of service. Even if an account is initially approved, it can be frozen or shut down once the processor identifies what you’re selling. A merchant account built for CBD and hemp from the start avoids that risk.
Underwriting typically requires your business and personal information, bank account and routing numbers, recent bank statements, a Certificate of Analysis (COA) confirming THC content for your products, and an active, compliant business website.
CBD is legal in most states as long as it contains less than 0.3% THC, though state laws vary and the FDA has not approved CBD as a dietary supplement or food additive. Because the regulatory landscape is still evolving, working with a processor that understands CBD compliance is essential.
CBD accounts are often flagged by processors that aren’t built for the industry, even when the business is fully compliant. Chargebacks, unclear product classification, or a processor’s internal policy changes can all trigger a freeze. Working with a processor underwritten for CBD and hemp from the start is the most reliable way to avoid disruption.
Get Your Compliant Merchant Account Set Up Today
Let Vector Payments be your trusted payment processor for CBD and hemp products. With our advanced risk monitoring solutions, you can rest assured that we will provide you with superior fraud protection and the highest levels of security for your customers.
No hidden fees. No CBD legal nightmares. Just merchant services you can trust with your credit card transactions and all the types of payments you accept.
Ready to start selling CBD products online?
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