Does Stripe Accept CBD Payments?

Stripe may accept CBD payments depending on your merchant policies, product type, and jurisdiction. However, Stripe's policies reserve the right to restrict or terminate these accounts.

What Stripe’s Policy Actually Says About CBD Businesses

Marijuana is on Stripe's list of restricted businesses, along with adult entertainment, gambling, and peer-to-peer lending. Stripe places CBD along with other products in highly regulated industries, like e-cigarettes or pharmaceuticals, that are subject to additional scrutiny.

While the policy states that only CBD above the merchant's local limits is prohibited, the Frequently Asked Questions page notes that the restrictions "include any products with CBD or THC in them." This creates challenges for merchants who comply with their local laws, as they may find access restricted when a support team flags their account.

Because Stripe is an international processor, sectors with varying regulatory guidelines often face challenges. It is easier for the company to restrict these entirely rather than manage them on a case-by-case basis.

Why CBD Merchants Get Flagged Even if They’re “Hemp-Derived”

Hemp-derived cannabinoids may be flagged, even if they are legal in the merchant's jurisdiction, as Stripe reserves the right to restrict services at any time. There are several triggers that can result in additional scrutiny and potentially a Stripe account shutdown:

• Product Type Ambiguity: Your product descriptions must be clear about whether you sell edibles/ingestibles, like CBD food oil, or topicals, like CBD massage lotion. Topicals are less likely to get flagged than edibles.
• Full Spectrum CBD: These products have cannabinoids, terpenes, and flavonoids to produce a synergistic effect, typically with up to 0.3% THC. However, some jurisdictions restrict this because of potential psychoactive effects. Language about "full-spectrum CBD" may raise the risk.
• THC Threshold Sensitivity: The 2018 Farm Bill allowed CBD with less than 0.3% THC, but some jurisdictions have higher or lower thresholds, so any level of THC may cause concern.
• Documentation Gaps: Every batch must have a Certificate of Analysis to pass regulatory scrutiny. Non-compliance with documentation requirements is a common reason for restrictions.
• Marketing Claims: While many people take CBD for sleep improvement, pain relief, or anxiety, the FDA does not allow companies to claim medical benefits for non-pharmaceutical products. You cannot tell consumers that your product can diagnose, cure, treat, or alleviate any disease or illness.
• Higher Risk Profile: CBD and cannabis are high-risk industries because of the higher dispute and chargeback rates. Customers may change their minds on subscriptions, or shipping delays may lead to complaints.

Can I use Stripe to Accept Payments for CBD on Shopify?

A woman using a laptop to buy CBD online

Credit: Adaptiv Payments

Many business owners do not use Stripe directly. Instead, they use Shopify or another ecommerce integration as a payment gateway, and Shopify uses Stripe to process and secure transactions.

When selling CBD on Shopify, you still have to follow Stripe's guidelines, or you cannot access processing through the platform.

Accept Credit Card Payments Using Compliant Alternatives for CBD Payment Processing

While Stripe can be a quality payment processing solution for businesses in low-risk industries, CBD merchants may unexpectedly lose their processing services. This is why many business owners choose a CBD merchant account with a compatible payment gateway. There are significant benefits to using a specialized processor for both merchants and their customers, including:

• Multiple Payment Options: CBD businesses can boost sales by accepting debit and credit cards, EBT, e-checks, gift cards, and more. Allowing customers several ways to pay reduces cart abandonment and improves revenue.
• Fraud Monitoring and Prevention: CBD is considered high-risk due to fraudulent charges. With a dedicated processing partner, you can enjoy real-time fraud monitoring using multiple authentication tools, such as AVS, CVV, and 3D Secure.
• Chargeback Mitigation: Chargebacks may occur when customers forget to cancel a subscription, grow frustrated about shipping delays, or experience buyer's remorse after a large order. Some processors charge unacceptably high processing fees, freeze funds, or terminate service. However, a high-risk merchant account provider offers proactive chargeback mitigation through monitoring and support tools, helping resolve disputes before they damage your reputation.
• Regulatory Guidance: Merchants in high-risk sectors often need specialized guidance for common challenges like age verification, signing for deliveries, or cross-border transactions. The right processor has industry experience and can guide your team.

Choose Adaptiv Payments for High-Risk Industry Payment Processing

Adaptiv Payments has become the high-risk merchant account of choice for thousands of CBD merchants due to our competitive rates, comprehensive processing solutions, and personalized service.

• Industry Experts: We have been in the CBD field for years and understand the challenges inherent to this highly regulated sector. Our team can help you find solutions for common challenges, like accepting payments online with age verification.
• Common-Sense Underwriting Policy: Rather than only looking at your sales or processing history, we consider your business model, credit, and product lines.
• Transparent Contracts: In addition to competitive rates and affordable processing fees, we personalize our service for each client so they get exactly what they need to thrive.
• Convenient Integrations: We make it easy to integrate your merchant account with your existing infrastructure for a seamless processing experience.
• Advanced Fraud and Chargeback Mitigation: Adaptiv Payments is here to protect both your money and your reputation. PCI-DSS-compliant processing reduces risk and improves the shopping experience.

Contact us today to get a free quote and learn why thousands of companies trust us as their payment processor of choice.