Marijuana Merchant Account and Payment Processing.

A cannabis merchant account lets hemp, CBD and other cannabis-related businesses accept debit and credit cards online and in person.

Merchant accounts serve as a bridge between the customer's bank account and your business account. When a customer pays by card, the payment is authorized in real time, and once it settles, the funds are deposited into your business bank account.

However, many traditional institutions will not process payments for cannabis businesses due to the legal risk. As such, these merchants need a specialized account tailored to their unique needs, such as a cannabis merchant account from Adaptiv Payments.

Not for THC products. Visa and Mastercard don't allow card payments for marijuana, medical or adult-use, even after state-licensed medical marijuana moved to Schedule III in April 2026. Hemp-derived CBD within the legal limits and cannabis-related products like accessories and grow supplies can take cards.

However, this does not mean that you have no options. Licensed dispensaries rely on cash and pay-by-bank (ACH) apps through banks that serve cannabis businesses. Avoid "cashless ATM" and PIN debit workarounds: they code purchases as ATM withdrawals, which breaks card network rules, and Mastercard told its banks to shut them down in 2023.

Our merchant accounts allow you to customize what types of payment methods you will accept. By adding greater variety and flexibility, you can help customers find exactly what they need and enjoy a seamless payment experience.

Yes. Licensed dispensaries can't take Visa or Mastercard for THC products, so we work with them on ACH and pay-by-bank payments, where customers pay straight from their bank account through a cannabis-friendly bank. Tell us about your license, locations and monthly volume, and we'll walk you through the setup for in-store and online orders.

There's no cannabis MCC in the US. CBD retailers use 5499, smoke shops 5993, grow and hydroponic supply stores 5261, cannabis software companies 7372 and consultants 7392. Smoke shops selling online need card network registration under 5993.

Not for THC. Stripe prohibits cannabis products and dispensaries and only restricts CBD with negligible THC, Square doesn't allow marijuana or related items, and PayPal prohibits controlled substances and drug paraphernalia. A merchant account underwritten for hemp, CBD and accessories is the stable option.

One that underwrites CBD on purpose, not one that tolerates it until the next review. Look for a merchant account in your own name, a bank that approves hemp products, chargeback alerts and clear reserve terms. Our CBD merchant account page covers what CBD industry underwriters ask for, from lab results to a voided check for your deposit account.

Yes. Many banks and credit unions serve cannabis companies under FinCEN's guidance, with extra due diligence and reporting, and hemp and CBD businesses can usually bank like any other retailer. A business bank account is also what ACH payments settle into, so cannabis operators need one before they can take pay-by-bank payments.

Yes, for hemp and CBD products and cannabis accessories. If you have a retail store, we can set up Point of Sale (POS) systems that allow quick and compliant purchasing. We also work with online stores to create robust fraud detection measures, including AVS, 3D Secure, and age verification. Licensed dispensaries selling THC products can't accept Visa or Mastercard, so they use cash and pay-by-bank options. Our experts will guide you to the right solutions for your needs.

To get approved for a merchant account, you must provide all of this information with your application.

Active Business License: You must have a state business license, plus a state hemp or cannabis license where your state requires one. Include a detailed business plan and your EIN, issued by the IRS. You'll also want to provide proof of insurance and your registered business location.

Legal Compliance: Ensure that your products are properly labeled with a Certificate of Analysis (COA) for every batch. Do not make health claims in any marketing or packaging. You will also need to have age verification measures in place.

Financial Documents: Provide at least three months of bank statements and three months of processing statements, if available.

Your processor may ask for additional information, such as articles of incorporation, financial statements, or statements from your third-party laboratory. By working closely with our experts, you can get your account up and running faster.

Often, yes. Many cannabis-related businesses come to us after a processor closed their account. We look at why it happened and what's changed. We also work with merchants on the MATCH list.

It depends on what you sell and your history. New online CBD brands and smoke shops selling online often have a rolling reserve at first. Grow suppliers, software and service companies with clean history often start with a low reserve or none.

Yes. Adult-use cannabis requires buyers to be 21 or older, and several states set 21 as the minimum age for hemp and CBD too. Use an age gate and verification at checkout, and check ID at delivery or pickup.

Only part of it. Since April 28, 2026, marijuana in FDA-approved products and marijuana sold under a state medical marijuana license is Schedule III. Adult-use marijuana is still Schedule I, and the DEA hearing on rescheduling the rest hasn't produced a final rule. Neither change lets card networks accept THC sales.

Not all of them. From December 11, 2026, federal hemp must have no more than 0.3% total THC and no more than 0.4 mg of total THC per container. Delta-8, THCA flower and most hemp THC drinks and gummies stop being hemp and become marijuana. CBD products within the limits still qualify. Our CBD merchant account page covers the details.

No. The SAFE Banking Act was reintroduced in June 2026 and hasn't moved past introduction. Banks that serve marijuana businesses still follow FinCEN's 2014 guidance, which requires due diligence and special suspicious activity reports.

A marijuana business needs these specialized merchant services because many traditional banks and credit unions will not work with cannabis. The evolving legal landscape and patchwork of state legislation make it difficult to stay compliant, and many institutions worry about reputational risks if they accept cannabis-related businesses.

Another concern is chargebacks from card fraud on online orders. Consumers may be unhappy with the quality of the products they receive, or they may perpetrate "friendly fraud," which is when they request chargebacks despite being satisfied with the product.

We use a variety of methods to reduce chargebacks. One of these is continuous fraud monitoring, which uses algorithms to identify suspicious purchases. For example, if one account makes a number of purchases very close together, this could suggest fraud.

We can help you implement 3D Secure, which asks the cardholder's bank to verify the buyer, often with a one-time code. Another option is the Address Verification System (AVS), which checks the address the buyer enters against the card's billing address. A mismatch could suggest fraud.

Our team will work with you to find the right chargeback mitigation tools for your business model, helping you stay safe and compliant.

Mostly card-not-present fraud, "not received" claims on shipped orders, and "not as described" claims about products. 3D Secure, tracking with delivery confirmation, and certificates of analysis that match your product pages win most of them.

Visa's VAMP program flags merchants at a 1.5% fraud-and-dispute ratio with at least 1,500 disputes and fraud reports in a month, and Mastercard starts at 1.5% and 100 chargebacks. Banks act well before that, so aim to stay under 1%.