CBD Payment Processing

Why Is CBD & Hemp Oil Considered High Risk?

CBD and hemp products are classified as “high risk” for a few reasons. The first of which is legislation. Until recently, cannabis products containing any amount of THC were federally illegal, thus CBD merchant accounts could not be obtained. The Farm Bill of 2018 removed cannabidiol from Schedule I drug classification and allowed states to create their own parameters around the sale of CBD products.

While recent legislation has been more favorable than historically, CBD and hemp products are still widely considered taboo. That said, it’s unclear whether future legislation will continue this favorable trend or shift back to historically restrictive regulations.

Such strict regulations result from the misunderstanding of cannabis, the plant from which CBD and TCH are derived. A cannabis plant produces compounds called cannabinoids. Two types of cannabinoids, CBD is cannabidiol, whereas THC is tetrahydrocannabinol. Though they’re different chemicals to which the human body reacts differently, many associate CBD with THC because they’re extracted from cannabis plants. Unfortunately, a societal misunderstanding of their differences also contributes to the CBD industry’s high-risk consideration.

Additionally, the alleged benefits of cannabinoids remain unverified beyond personal testimonials. Without substantial data detailing what can be considered the standard results of CBD- and hemp-derived products, customers left with unmet expectations may initiate a chargeback. Due to its higher likelihood of chargebacks, the payments industry considers the CBD industry a high risk.

The combination of the above factors results in CBD businesses being considered high risk among payment industry professionals. Luckily, at PaymentCloud, we’re different, and so are the processors to which we’ll connect you! We’ll only connect you to processors that won’t penalize your business as a result of antiquated misconceptions about CBD and hemp products.

How to Secure High-Risk CBD Payment Processing

Securing payment processing for your CBD business is easy! Simply fill out a contact form and one of our account managers will reach out. After assessing your business details, your dedicated account manager will provide guidance on which payment solutions are most beneficial to your particular operations. When you’re ready to move forward with your customized payment solutions, your account manager will secure your chosen payment services. After approval, you can begin processing as soon as the next day. You deliver relief to your customers, now let us deliver payment processing relief to you!

How PaymentCloud Handles CBD Merchant Processing

In order to successfully advise you every step of the way, we train our staff to be knowledgeable about the legality of CBD products and the requirements of CBD payment processing. Our experienced account managers can effortlessly open your CBD merchant account so you can begin processing payments as soon as possible.

The Importance of Partnering with a Seasoned CBD Payment Processor

As a merchant services provider at the forefront of the CBD industry, we’ve secured thousands of merchant accounts for CBD entrepreneurs. When you partner with PaymentCloud, you also partner with our robust network of payment solution providers cultivated over years in the industry. With the advantage of PaymentCloud’s resources, CBD merchants—like you—can get approved faster, easier, and at the most competitive rates possible.

Stop jumping through hoops trying to get your CBD merchant account set up! Whether you need a card terminal or an online gateway, PaymentCloud can get your CBD business up and running!

CBD Payment Gateways for Seamless Integrations

Beyond providing CBD merchant accounts at affordable rates, PaymentCloud supports integrations directly into the software, systems, and tools you already utilize within your operations. We maximize your business’s integration potential through an array of partnerships with industry-leading payment gateways like Authorize.net, NMI, and USAePay. Whether your eCommerce platform is WooCommerce, Magento, Shopify, or BigCommerce, we can integrate with the most popular platforms to help you successfully sell your CBD products.