CBD Payment Processing

Selling CBD should not feel harder than formulating it. If you are in this space, you already know the problem is not demand. It is banking. Accounts get frozen. Applications get declined. Aggregators approve you on Monday and shut you down on Friday. And suddenly your revenue is on hold while your inventory keeps moving.

CBD is still treated as high-risk by most banks and payment facilitators. Between evolving regulations, card network scrutiny, and compliance requirements, many traditional processors simply do not want the exposure. That leaves serious CBD brands stuck cycling through unstable providers.

We specialize in high-risk merchant accounts, including CBD, hemp-derived products, and compliant ingestibles. With decades of experience underwriting complex industries, we know exactly how to structure your application, position your business correctly, and secure stable acquiring relationships that are designed to last.

Our goal is simple: get you approved and keep you processing without disruption.

How to Apply

CBD merchants selling hemp-derived products with THC levels of 0.3 percent or below can apply for a merchant account. We cannot provide accounts for any cannabis products containing THC above 0.3 percent.

You will need the following information when applying:

• A voided check
• A valid government I.D. (driver’s license)
• Six months of processing statements showing chargeback performance
• Articles of Incorporation
• SSN
• Fulfillment agreement
• A secure, fully compliant website

What We Offer CBD Merchants

As the CBD industry expands and encompasses new products, we work to maintain reliable service for every merchant on our platform.

• Fast approvals within 24 to 72 hours
• No application, annual, or setup fees
• Risk mitigation through Order Insight by Verifi
• Chargeback alerts
• Rates as low as a blended 2.95%

FDA Regulations and CBD Processing

The lack of broad FDA approval is a major concern for payment providers serving the CBD space. The only FDA-approved drug containing CBD is Epidiolex, a purified formulation used to treat seizures. The FDA has taken action against several CBD companies for making unsupported claims about medical benefits.

Because THC levels in CBD products can vary, processors face real compliance risk. If a CBD company is found selling products with THC above 0.3 percent, the payment provider can face financial and reputational consequences. This is why most traditional processors avoid the category entirely.

CBD Chargebacks

Chargebacks in the CBD industry tend to be lower than in other high-risk verticals like online dating or adult content. That said, they still occur, especially with online CBD stores and subscription models.

A chargeback is a charge returned to a credit card after a customer successfully disputes a transaction. In the CBD space, this is most common with subscription boxes, where recurring billing can lead to disputes from customers who forget they signed up or have trouble cancelling.

Here are a few things to keep in mind when choosing your merchant service provider:

• Pricing: specialty merchant accounts typically carry higher fees than standard accounts. We offer interchange-plus pricing as well as traditional merchant discount rates. Expect a rolling reserve, a portion of each settlement held temporarily to protect against chargebacks and fraud.
• Account approval: be cautious of providers that approve you instantly. That usually means your account was opened without a proper underwriting review, which can lead to problems later.
• Hardware: if you sell both online and in-store, you will need a credit card terminal or mobile processing system capable of accepting EMV and contactless payments.
• Contracts: CBD merchant account contracts vary between providers. Some require early termination fees, but this is often negotiable.
• Support: ecommerce support is critical for CBD processing. We can help you configure your gateway to restrict orders from zip codes where CBD is not permitted by law.

Is CBD Credit Card Processing Expensive?

CBD merchants will generally pay more for processing than standard merchants, because the category is classified as high-risk. That said, we offer competitive rates and waive application fees, annual fees, and setup fees. We believe a good processor earns your loyalty through transparent pricing, not hidden charges.

Why Choose Corepay

We specialize in the CBD industry and in high-risk merchant accounts broadly. We understand what it takes to get merchants approved and keep them growing. We offer fully customizable credit card processing and can get you approved in as little as 24 hours after you submit your application.