Can CBD Merchants Use Stripe?
CBD and Delta 8/9 have been all the rage over the last few years, with no signs of slowing. However, while this is a highly profitable industry, it doesn’t come with its challenges.
This article will list everything you need to know about Stripe regarding CBD/Delta 8 products.
Does Stripe Accept Payments for CBD And Delta 8?
At this time, Stripe does not accept CBD or Delta 8 merchants as they both violate their terms of service.
Since Stripe doesn’t allow sales for CBD and Delta 8, you must find a high-risk merchant account provider familiar with these industries.
At Corepay, we have over two decades of high-risk credit card processing experience and a deep understanding of the CBD industry.
It’s also important to note that Stripe doesn’t accept the following merchants:
- Adult entertainment and products
- Payday loans
- Travel businesses
- Vapes and e-cigarettes
- Credit services
- Crowdfunding services
- Multi-level marketing
- Fantasy sports
Did Stripe Shut Down Your CBD Business?
Having your merchant account frozen is one of the most frustrating things for a business owner. Unfortunately, there isn’t much you can do if this happens, as you have violated Stripe’s terms of service as a CBD merchant.
If you’re wondering, why did they accept us, to begin with, then? You aren’t alone. Unfortunately, Stripe and other low-risk processors do not perform their underwriting at the time of your application.
This means you will get initially accepted and then find your account terminated a few months later. Stripe clearly states in their terms of services each industry that they do not accept, and it is up to merchants to follow their rules and guidelines.
Let’s take a look at the solution. As soon as you find that your Stripe CBD merchant account was terminated, you should follow up with them for clarity and to all check on your chargebacks while, at the same time, immediately searching for a high-risk payment processor.
You may have to wait up to 180 days until you can access the funds in your merchant account once it’s terminated. Rather than spending your time worrying about this, it’s best to get your feet back under you and find a new payment processing provider so that you can accept credit cards again.
When searching for a payment processing partner, take your time and compare rates among different processors. Rushing into another quick solution isn’t always the best thing, as you could wind up in a similar position.
Why Does Stripe Not Accept CBD/Delta 8
Stripe focuses on low-risk payment processing. For this reason, Stripe doesn’t work with CBD/Delta 8 merchants. So, why does Stripe consider CBD to be high-risk?
CBD is labeled high-risk by banks and processors for many reasons.
The main reasons that Stripe does not accept CBD/Delta 8 are as follows:
1) Legal Restrictions: CBD and Delta 8 are heavily regulated, making credit card transactions risky for banks and processors. There are also laws in which these products cannot contain more than .3% THC.
2) Chargebacks: Chargebacks are the bane of many merchants’ existence. Unfortunately, chargebacks can be pretty high in the CBD industry due to fraudulent customers/consumers who believe the products were ineffective.
3) Health Risks: There are unknown health risks when it comes to these products, especially if they are being inhaled. For many processors, the risk associated here isn’t worth it.
Why Come To Corepay
If you are searching for another payment processor for CBD/Delta 8, we believe we are the perfect fit for your business.
We believe that we can save you money on processing fees, as well as save you drastically reduce your chargeback ratio through our partner product, CB-ALERT.
At Corepay, we can offer the following to all our merchants:
- Highly competitive rates: We understand that providing you with the lowest possible processing fees allows your business to continue growing with optimal profitability.
- Fast approval times: Our quick approvals maximize travel merchants’ time to make sales. We can provide approvals typically between 24-72 hours.
- High volume processing: Our payment gateway, Solidgate, is explicitly designed for high-risk companies processing high volumes.
- Multiple currencies: We understand the importance of being able to accept different currencies
- Security: We have a PCI-Level 1 secure payment gateway that is monitored around the clock and regularly tested for security issues
- Mobile payments: You can easily accept payments from customers paying with their mobile device
- Waived application, set up, and annual fees
- 24/7 customer service
Fill out an application with us today to find out what we can do for your CBD business.