Stripe CBD Merchant Accounts

As the CBD market continues to expand, many business owners are eager to tap into this lucrative industry. However, navigating digital payments for CBD sales can be a daunting task. While CBD is legal in many places, the financial landscape surrounding its sale remains complicated. In this article, we'll help you navigate your options as a CBD business owner including, finding a specialized cbd merchant account, and ensure your online payment processing needs are met.

Can I Sell CBD On Stripe?

As of the time of posting, no, you cannot sell CBD products on Stripe. The payment platform maintains a list of prohibited and restricted businesses. The "non-exhaustive" list of prohibited businesses includes a section about marijuana products which includes:

• Cannabis products
• Cannabis dispensaries and related businesses
• CBD products with THC levels that are greater than the applicable local jurisdiction’s legal limit, including CBD edibles
• Hydroponic equipment and other cultivation or production equipment marketed for growing marijuana
• Courses and information on cultivating marijuana

This list doesn’t necessarily cover every product on the CBD market so merchants may be inclined to look into whether their specific CBD offering would technically be supported by Stripe or not. However, Stripe's clarifying FAQs cover marijuana businesses and slash any doubts. Whether the product is hemp-based, CBD, topical, ointment, or lotion, businesses that offer CBD products are not permitted under Stripe's terms of service, which means merchants need to seek alternative payment processing solutions that offer risk solutions for their business type.

Why Can't I Sell CBD On Stripe if CBD Is Legal?

Stripe uses their clarifying FAQs page to answer this as well, and it's an easy-enough-to-understand response. The goal is to avoid potential issues or penalties. Stripe, like many other large payment processors, categorizes CBD as a high-risk business due to the possibility of significant changes in regulations and the potential for high chargeback rates.

Financial service providers like Stripe, one of the largest payment processors today, also have to adhere to the regulations of their partner banks and card networks, which may have more conservative policies regarding CBD-related transactions. Some institutions still treat CBD on par with restricted or illegal drugs due to their association with the cannabis plant, despite the legality of CBD derived from hemp.

Selling CBD Products Online

Unfortunately, when it comes to Stripe, CBD is a no. At this point, if you have sold or planned to sell CBD products with Stripe as your payment processor, it's time to shift your strategy to accept digital payments.

Due to the complexities surrounding state and federal regulations, as well as the differing legal statuses of cannabis products, many payment processors classify CBD as a high-risk category. Given this classification, business owners wishing to sell CBD products through online platforms should find a reliable payment gateway and payment processing provider that specializes in high risk merchant accounts.

Business owners face unique challenges in securing a reliable payment processor when selling CBD products online. With CBD being a high-risk industry due to varying regulations and the potential for chargebacks, many traditional financial service providers are hesitant to serve these businesses. It's critical to find a merchant account provider specializing in high-risk businesses and offering tailored merchant accounts.

Zen Payments is an example of a merchant service provider that caters to high-risk merchants, including those selling CBD products. They provide custom merchant accounts, ensuring that businesses dealing with CBD products have lower chances of transaction processing interruption. Their services support the preferred payment methods of a wide range of customers.

Payment Gateway Features:

• Multiple payment options to cater to a variety of customers
• Secure payment acceptance strategies to protect both the business and its customers
• Potentially more competitive transaction fees for high-risk business types

Business owners should always verify that their online business complies with the legal frameworks for selling CBD products, thereby avoiding any breaches in the terms of service that could result in the suspension of their current payment processing account. Partnering with a payment processing provider like Zen Payments is imperative for long-term, reliable CBD payment solutions.

What Is a High-Risk Business?

A high-risk business is characterized by its increased likelihood of chargebacks, fraud, and regulatory issues. For CBD businesses, the high-risk designation stems from several factors:

• Legal Uncertainty: The legality of CBD varies greatly between different states and countries, creating a complex regulatory environment.
• Chargebacks: CBD products often face higher rates of chargebacks due to customer disputes or dissatisfaction.
• Fraud: The popularity and value of CBD products make them a target for fraudulent transactions.

These factors contribute to the difficulty CBD businesses face when finding a secure and reliable payment gateway and complicate the possibility of securing a long-term, reliable CBD payment solution.

High-risk businesses need a high volume merchant account to maximize profit and avoid extra fees. These specialized accounts are designed to handle the increased risks associated with high-risk industries.

Finding a reliable payment gateway and merchant account for your CBD business

Finding a CBD Merchant Account

Finding a reliable payment gateway and merchant account will enable your CBD business to operate online in the long term. When looking for a high-risk merchant account for your CBD business, make sure to consider the following:

• Your provider should understand the unique needs and legal nuances of the CBD market.
• Ensure they offer secure payment acceptance strategies to protect your business and offer customers access to their preferred payment methods.
• Look for transparent transaction fees to avoid unexpected costs.
• Confirm that their online payment processing solutions are compatible with your business setup.

Sell CBD Products Online With Zen Payments' Services

Although a Stripe CBD merchant account is not currently offered, businesses can find ready options to help.

Zen Payments provides long-term, reliable CBD payment solutions for high-risk merchants. Our custom merchant accounts and payment gateways are tailored to facilitate legal service fee payment and preferred payment methods, minimizing the risk of interrupted service due to restricted business types.

Zen Payments Services Include:

• Custom Merchant Accounts: Tailored to industries selling unique products, prone to fraud or chargebacks.
• Payment Gateway: Offers a variety of payment methods, including credit cards, debit cards, and ACH transfers.
• Fraud Protection: Advanced security measures to protect against fraudulent transactions and chargebacks.
• 24/7 Support: A dedicated support team can assist with any issues or questions.

For comprehensive alternative payment processing solutions that support the range of products you offer, contact Zen Payments today. We can help you maintain compliance while processing payments securely and thoroughly, meeting your CBD business needs.

FAQ

What are the fees associated with high-risk payment processing for CBD businesses?

Fees associated with high-risk payment processing for CBD businesses can vary depending on the specific provider, but generally, they tend to be higher than for low-risk businesses. Some of the fees that CBD businesses may encounter include application fees, setup fees, monthly fees, transaction fees, chargeback fees, and rolling reserves.

Are there any legal considerations when setting up payment processing for a CBD business?

Yes, high-risk merchants should always verify that their online business complies with the legal frameworks for selling CBD products to avoid breaches in the terms of service that could result in the suspension of their current payment processing account. Ensure that the payment processor you choose also complies with all federal and state laws regarding CBD sales. Some high-risk payment processors may require additional documentation or evidence of compliance with industry standards to approve your account.