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CBD Payment Processing Overview

If you are selling CBD products online, you are likely already well aware of cannabidiol’s rapidly growing popularity in the United States. With the influx of new businesses in the CBD world, current projections estimate that the industry will harvest more than $16 billion in revenue by 2025.

Since the passing of the 2018 Farm Bill, which removed hemp from the definition of marijuana under the Controlled Substances Act, new businesses have been sprouting across the country. Many of these new businesses are still searching for payment gateways that allow CBD merchant processing. There’s a lot of money to be made in the CBD industry. Of course, there are also challenges that come with getting involved with a high-risk sector. You’ll need to stay abreast of the latest information to ensure you conduct your business legally.

Credit Card Payments for CBD are Still Evolving

There are very few current providers who can place CBD vendors. Of those providers who are able and willing, there are even fewer who might be viable options for your business due to the high prices, lower customer satisfaction, and lack of transparency.

Generally, sellers of CBD should prepare themselves to spend fairly high transaction rates because of the high risk associated with CBD products. Certain processors can also cause sellers temporary fund holds. With that said, the security and convenience of credit card payments make it worthwhile for many vendors to endure the risks.

CBD Payment Processing Challenge

At this point, very few credit card processors will approve your CBD business because of CBD’s association with cannabis. Because of this association, CBD products carry the label of high risk, which means account providers and banks will be wary about working with your business.

Popular aggregators like PayPal and Stripe do not currently support any businesses associated with CBD products. Square recently announced that it would work with CBD businesses, but that change is still in its infancy, so it remains to be seen how that partnership will work out. Bottom line – setting up an account with one of these providers means you will run the risk of having your account closed if learns that your business sells CBD products.

Why is CBD Considered High Risk?

CBD products are still considered high risk for three primary reasons: legislation, risk of chargebacks, and reputation.


While legislation is becoming increasingly favorable for CBD products, many processors still see it as taboo and are not willing to get involved. Even though CBD products do not contain THC and have no psychoactive properties, not everyone understands what is different about CBD. Though unfair, misconceptions cause legitimate CBD businesses to incur unjust penalties.


Because large pockets of the American public do not fully understand CBD products, how they work, or what they are meant to do, people might have false perceptions about the products’ benefits. Personal testimonials are tough to verify and impact varies from one customer to another. That’s why CBD products tend to have high chargeback rates. These rates can be limited by providing a clear explanation of products and their benefits. However, risks of chargebacks are difficult to entirely eliminate.


Despite the passing of the 2018 Farm Bill, the reputation of CBD has yet to catch up with the federal ruling. Individual states are still free to create their own parameters regarding CBD products. This causes a degree of uncertainty, making many banks refuse to accept the risk of associating with CBD sellers.

The Need for Trusted CBD Payment Processor

Competition is stiff in the CBD industry, so you always need to be at the top of your game. You can remain at peak performance by partnering with the right CBD payment processor. This will help you retain customers and maximize your profit levels.

Your CBD Payment Processing Solution

Bonnegran has the solution – we offer full-service CBD Payment Processing. You can visit our page to see all of our payment processing options and the CBD products that are supported.

Our team will make sure you are fully taken care of when you partner with us. And we want to be transparent about what you can expect from our process.

  • We have a longer underwriting process. It will be more expensive, but it is well worth the time and effort.
  • We follow all regulations, so we have no risk of getting shut down.
  • You are not forced into a long-term contract with us, so you retain flexibility.

If you’re ready to grow your CBD business and begin processing payments for potential customers, contact us today. You can talk to our trusted team and receive the answers you want. We can help your business by handling the payment processing so you can focus on your product. Reach out to us today, and let’s get to work.

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