How to Get a Merchant Account for a High-Risk CBD Business
The CBD industry is booming, but processing payments for CBD-related products remains a challenge. Due to regulatory uncertainties and varying state laws, banks and payment processors often classify CBD businesses as high risk, making it difficult to secure a reliable merchant account.
However, by choosing the right provider and following key steps, CBD merchants can successfully obtain a high-risk merchant account and process payments securely. This guide outlines the process, challenges, and the best merchant account providers.
Why Is the CBD Industry Considered High Risk?
CBD businesses are labeled as high risk due to:
- Regulatory Uncertainty: While hemp-derived CBD is legal under the 2018 Farm Bill, the FDA and state regulations vary.
- Chargeback Risks: Many banks fear high chargeback rates due to misleading product claims or customer dissatisfaction.
- Association with Cannabis: Some financial institutions treat CBD similarly to THC-based products, which remain federally illegal.
Because of these risks, traditional banks and payment processors (such as PayPal and Stripe) often refuse to work with CBD merchants, leading businesses to seek high-risk payment processors.
How to Get a CBD Merchant Account in 5 Steps
1. Choose a High-Risk Merchant Account Provider
Since mainstream processors don’t support CBD sales, selecting a specialized high-risk payment processor is essential. Adaptive Payments is a trusted provider that offers secure payment processing solutions tailored to the CBD industry.
Required Documents
To apply for a high-risk CBD merchant account, prepare the following:
- Business License & EIN (Employer Identification Number)
- Bank Statements (Last 3-6 months)
- Processing History (If applicable)
- Product Descriptions & COAs (Certificates of Analysis for CBD potency and THC compliance)
- Refund & Shipping Policies (Clear terms to reduce chargebacks)
Providers like Adaptive Payments require businesses to comply with federal and state laws before approval.
3. Ensure Compliance with Payment Rules & Regulations
Most high-risk payment processors will only work with compliant CBD businesses. Key compliance requirements include:
- Products must contain less than 0.3% THC (per the 2018 Farm Bill).
- No medical claims on the website or marketing materials.
- Clear terms of service, refund policy, and privacy policy.
Being fully transparent and compliant increases the likelihood of approval.
4. Integrate Payment Processing into Your Website
Once approved, you’ll receive an API or payment gateway (e.g., Authorize.net, NMI, or Stripe for CBD). This allows secure credit card processing on your website.
If using Adaptive Payments, they will assist in integrating their payment solutions into eCommerce platforms like:
- Shopify (with high-risk payment workarounds)
- WooCommerce
- BigCommerce
5. Monitor Transactions & Reduce Chargebacks
CBD businesses face higher chargeback rates, which can lead to merchant account termination. To reduce risks:
- Use a clear refund policy to prevent disputes.
- Provide detailed product descriptions to set customer expectations.
- Offer customer support to resolve issues before they escalate.
Adaptive Payments provides chargeback management tools to help protect your merchant account.
Final Thoughts
Getting a high-risk merchant account for a CBD business requires the right payment processor, compliance, and risk management strategies. Traditional banks and processors may not support CBD sales, but specialized providers like Adaptive Payments offer tailored solutions to keep your business running smoothly.
By following these steps, you can successfully secure a CBD-friendly payment processing solution and continue growing your business without financial interruptions.
