Maryland resident Barbara Tunstall relies on a cannabidiol CBD flower in a vape she said helps her chronic pain and a topical CBD cream she finds relieves spasms. Along with coconut oil-based pills she used to get from her prescribing doctor, Tunstall credits her quality of life to CBD products.
At this time we are unable to accept credit cards because credit card processors will not allow cannabis THC transactions. Tunstall expressed frustration at the additional obstacles and expense she must wade through to find relief for chronic conditions that a mixed but growing body of research suggests may benefit from cannabis products. I could try something [over the counter]. Less effective and end up wasting more time and effort. Mastercard, Visa, American Express, PayPal, Square, Stripe and Shopify all refuse to process payments for CBD companies, which means when you show up to a dispensary or try to place an order online, be prepared to need an alternate method of payment.
These companies are generally referred to as payment processors or merchant services. Mastercard and Visa all refuse to accept transactions for marijuana dispensaries, even where they are legal, and it may not be long before they also demand businesses stop selling hemp and CBD for fear of being held liable. When Wood launched, he was only able to accept e-checks, and it took months to get approval for that.
Wood recently found a service to accept all credit card types. Struggling to find a payment processor made it difficult for Wood to get his company off the ground. All they want is access to their products and most are completely in the dark about the CBD industries banking problems.
According to Hoban Law Group financial services group chair and senior attorney Steve Schainthe issue with payment processors and CBD really boils down to a complicated series of laws and guidelines.
CBD and THC are two of nearly cannabinoids, active chemicals contained in cannabis plants that many have found to be helpful for a variety of health conditions and other uses.
From a legal standpoint, hemp is derived from cannabis plants with less than 0. Thanks to the passage of the U. Farm Bill inhemp products are now legal in the U. The U. Food and Drug Administration FDA also prohibits adding cannabis to food or making health and wellness claims.
At the state and local levels, there are additional regulations. For example, the dispensary Curio Wellness in Maryland said, per state law, it must register with the Maryland medical cannabis commission. Products must be tested through approved labs and the company can only sell products derived from the cannabis plant — but not hemp-based products.
One solution to cover your payments needs
Number one, profits. Number two, risk they can manage. The impact on CBD companies is clear, but the inability to use credit cards is also a big deal for those purchasing products.If you purchase via links below, we may earn an affiliate commission. Learn more. Shopify do care about where your business is based and if the state is legal to buy said product.
You also should ensure your terms and conditions state the delivery states where the products are legal. Failure to do so will guarantee closure of your store. By default Shopify uses their own payment merchant called Shopify payments but this is actually underwritten by Stripe in disguise. Shopify is simply a web portal and without a payment processor it could simply be a standard HTML website.
On December 20thHemp was officially removed from the Controlled Substances Act CSA and is deemed an agricultural commodity and can no longer be mistaken for a controlled substance such as marijuana. The CSA has stated this should relax the rules put in place by regulated institutions such as banks, merchant services, credit companies, e-commerce sites and platforms to allow for hemp to be actively promoted and sold online.
As of the time of this article, there appears to be no movement from Shopify or Stripe, yet anyway. As outlined the problem with Shopify is their payment provider Stripe. Now there are other alternatives available to you.
Another is called Leap Payments. Shopify keeps blocking 3rd party processing integration tools. They want you with their sales partners and none are able to process risk industries, like CBD. I see this problem hinder businesses daily.
I am gonna search another platform to use. Any suggestions? Thanks Johan. Shopify and many other shopping carts stop supporting CBD merchants because of the controversial opinions.
While some shopping cart abandoning this Lucrative industry many find this an opportunity so there are many who start supporting this industry in all aspects. One of such Shopping cart is Cloudnet, They also provide merchant account with shopping cart and they have big community of CBD merchants co-coordinating with each other to make it even better.
They have big community to educate new CBD merchants opening and running their business. There are many artciles there but I found this one very helpful. Do we have any hard numbers on how well startup CBD online stores are doing their first few months? The bottom line is that Shopify is making it very difficult for CBD sellers to integrate alternative payment processing solutions into their hosting platform.
Guess what? You could look into merchant services from Zodaka. I understand they work like PayPal with slightly higher fees. I work with several CBD companies about 30 of them for website development and marketing. I moved them all over to Leap payments and it was actually cheaper than what they were paying at Square. Also, they use standard gateway integrations like NMI and Authorize. Read: We will not approve comments that are defamatory, misleading or abusive.An influx of online businesses are introducing CBD into their ecommerce stores.
Since the passing of the Farm Bill, which was signed into effect by President Donald Trump in December and removed hemp from the definition of marijuana under the Controlled Substances Act CSAan increasing number of ecommerce business owners are searching for payment gateways that allow CBD merchant processing.
In an effort to meet consumer demand for CBD products, such as oils, capsules, supplements and topical solutions, the non-psychoactive cannabinoid is being stocked inside an ever-growing number of brick-and-mortar shops and online ecommerce stores. Back inDr. Some 23 years later, scientists managed to assess its structure in clarity. Ultimately, this kick-started plenty of research into a molecule that has since been hailed a medical marvel ingredient.
Although CBD boasts a fairly long history, it has never been discussed quite as much as it is nowadays. This is not to say that THC does not possess therapeutic qualities — but for now, the world is paying close attention to CBD, since users need not experience mind-altering effects to reap the rewards. The difference is that cannabis grows with more than 0. Confusion between the two plants has caused controversy among hemp business owners who have struggled to find processing solutions that are willing to accept online ecommerce payments for CBD-containing products.
Even if your ecommerce business specializes in the sale of hemp-derived CBD, you will still need to seek out a reputable CBD payment processor that is equipped to handle high-risk transactions. As an industry that is undergoing constant metamorphosis in the legal aspect, you would benefit from staying on top of the evolving legal cannabis landscape across the U.
For an up-to-date status by state, get in the habit of checking reputable online resources like this one. Albeit legal in most forms throughout much of the U. The FDA is still straightening out regulatory framework for this industry, with the majority of regulations still unclear.
As a result, many payment processors will be reluctant to work with CBD companies. Shady manufacturers looking to make a quick buck are ruining it for everybody else by deterring payment processors from working with CBD sellers for online transactions.
The solution? Finding a high-risk processor who is not afraid to assist you with a payment gateway that ensures you can conduct business just like any low-risk company is able to. BigCommerce knows how to handle high-risk businesses, such as those associated with the CBD industry.
BigCommerce also invites high-risk companies to facilitate business transactions with more than local payment methods. Although the payment gateways made available to your business will depend on the country in which your company is registered and also, the currency that you use. However, whatever the gateway, we ensure that it can be digitally integrated with a range of popular payment technologies like Apple Pay, Amazon Pay and PayPal, to name a few.
We talk now about this below.Get started quickly and easily with Checkout—a conversion-optimized payment page you can drop into your checkout flow. Stripe Checkout supports 14 locales out of the box and dynamically surfaces Apple Pay and Google Pay when supported.
Learn more. Use Stripe Elements, a set of rich, prebuilt UI components, to design your own custom payment form for your site. Accept payments in person using Stripe Terminal.
WooCommerce CBD Payment Gateways
Use Stripe. If you need to bill US businesses, use Stripe to send invoices and request payments from your customers. Customize invoices to match your company branding, add payment terms, and accept both cards or ACH payments. Discover, understand, and select the right payment methods to reach a broader audience.
Use our native libraries to collect credit card information without sensitive PCI data ever hitting your servers. As part of our SDKs, quickly build a complete checkout flow with our prebuilt UI components —from form fields for card details to full flows for collecting shipping information—and customize the colors and fonts to perfectly match your brand.
Use Checkout and Elements to make your mobile checkout flows web-friendly. Our dynamic payments API lets you apply smarter authentication logic to maximize conversion while minimizing the disruption to user experience. Where customer authentication is required by rules like SCAour platform applies all relevant exemptions before requiring users to provide additional information.
See the docs. Direct integrations with the card networks let Stripe optimize routing paths, provide the most granular data, and reduce transaction latency.
Reduce your risk of fraud and chargebacks by adding an additional layer of authentication that protects you from liability for fraudulent card payments. Dynamic 3D Secure lets you protect conversion by selectively applying authentication to only high-risk transactions or payments that require authentication due to regulation. Eliminate manual work related to handling disputes with our end-to-end automated process that works directly with the card networks.
Create financial reports directly with Stripe data—no separate reports from American Express or separate bills from gateways and merchant account providers. Simplify how you reconcile transactions with cash received—every deposit is tagged with a transfer report detailing the exact transactions and fees it contains. Use our built-in reporting features or create your own reports through the API.
Automatically sync your Stripe data with your accounting ledger. Or use Stripe to export information about payments, refunds, and fees. Integrations for tax reporting are also available. Get unified payouts across all the different payment methods and currencies you accept from your customers. Get paid out quickly and easily.If you own a CBD store, many of the traditional payment options are not available to you.
This is due to the fact that CBD is considered to be a high-risk industry and because they are governed by US federal law. This means that even though it is legal to make payment via Paypal or Stripe in Europe, because the companies follow US law, they will refuse to accept payments and act as a payment processor for European CBD stores.
PayPal is not a regulated bank and is therefore not subject to the same legal requirements. One of the things that you agree to when you sign up for an account with PayPal is that they can freeze any funds in your account for up to days if they disagree with your business practices. Do a quick search on Google and you will quickly find thousands and thousands of complaints where companies have had their accounts closed for no reason.
There are also countless others that have struggled to get the frozen funds released. This is largely due to the fact that PayPal looks to the US for much of their regulatory oversight and, at a federal level, marijuana sales are not legal and CBD is equated with marijuana. This includes all different products such as CBD vape liquids, capsules, and oil. And, unfortunately, there is no way to appeal the decision.
This means that businesses are unable to access the funds that they need in order to continue operations, and cash flow issues have led to the closure of some businesses. In a post on their website, OrganicFunktion asked their clients to share about the stranglehold that payment merchants have on their business.
And CBDUltrawho sell products that are THC-free, shared that PayPal had closed their accounts and withheld their funds inconveniencing the company and their customers. Worldwide there are many instances of this happening, which has led to a petition on Change. Examples of CBD store owners in the UK having their accounts frozen or closed are widespread, in a post to customers on their site, OrganicFunktion mentioned that they had their account frozen by Stripe and were given 14 days to take payments on their website.
It is important to find a payment merchant that accepts common payment methods such as credit cards, as well as offering the highest levels of confidentiality and security. Worldnet has offered its payment gateway solutions throughout Europe and North America for the last 12 years, offering a service that is well-established and highly regarded.
Their gateway solution is available to merchants operating the CBD and Hep industry providing a secure, reliable way to process online card payments. The company makes it simple to integrate their product with free access to plugins that make adding their PCI compliant payment gateway easy. Integration guides are available in English and support is provided by their Support and Integrations Team in Dublin.
Worldnet makes it easy to access your funds offering a quick turnaround time on payments. This solution is a good option for eCommerce CBD stores as the funds are available within a couple of days, and they also offer online banking with a dashboard that tracks processed transactions and it allows for the processing of full and partial refunds quickly and easily. They have three main ways of accepting payments: by taking online card payments, over the phone, and by setting up subscription payments.
Thanks to these many ways of accepting payments, you will find that using Paytriot to accept your payments will help to open up your business to a lot more customers based around the globe.
Paytriot are also one of the few firms that will accept payments for CBD companies. Not all online payment merchants will work with CBD businesses, but Paytriot has already teamed up with around of these kinds of companies.
If you choose to use them, you can be happy knowing that you are working with a payment merchant that conducts their banking in the UK and are fully FCA registered should anything go wrong. We Tranxact is unique in its ability to service any business covering the full range from no risk to high risk, largely thanks to the links that they have with over card processors globally.
And their explosive growth can be attributed to their reputation that has spread due to their exemplary service and an established network of referral partners and recommendations. Over the last two years, they have helped hundreds of businesses, both online and offline, in the CBD industry with card acceptance services.
Nochex has been around for over 20 years, making them a well-established payment processor. They were one of the first off the mark when E-Cig businesses were starting up, helping to shape the future of the industry. They have a number of CBD banking relationships, as well as a fast, efficient onboarding process. Axcess Merchant Services was established in to help online businesses implement more effective payment solutions.Mainstream, all-in-one payment processors are using their clout in the credit card processing industry to devastate businesses in the CBD industry.
Account shutdowns have been occurring more frequently and, in many cases, without any notice. Since laws vary from state to state, most banks and nationwide financial institutions are not willing to take on the risk being associated with products that may still draw legal scrutiny. However, many of the account closures forced upon merchants selling products merely associated with CBD, under claims of illegal items, is completely unwarranted.
The federal government and the financial institutes, bound to their laws, group CBD and THC which is the actual active ingredient in many illegal marijuana products together without any differentiation or leniency. The government seems unwilling or unable to separate these two ingredients and apply sensible laws to properly handle regulation. This is why PayPal prohibited businesses still include many companies that have nothing to do with products that include THC.
Although CBD merchant accounts can be easier to obtain in states where marijuana and CBD by proxy are legal, they tend to apply to strictly retail, physical locations. This still leaves many issues for merchants attempting to sell online to the entire country. Because of the digital nature of the online CBD payment processing, sales and transactions have the ability to take place in states where CBD is a disputed violation or if the customer is in a place where CBD products are illegal.
In cases like these, the bank could face severe penalties. This is why, there is a desperate need for a solution that allows CBD merchants to process legitimate online sales, nationwide, without worry of being shut down. In the meantime, consumers who are in need of medical products containing CBD are suffering. Accounts are shut down without warning.
People who may have relied on this channel to pay for CBD products are suddenly robbed of their distribution channel. If no one sells those products in the local area, then the customer is basically stuck with no recourse to their illness. Thousands of customers rely on the ease of connecting with CBD providers online since many territories impose sanctions on maintaining a physical storefront with any cannabis product. It is essential that you understand the risks of relying on any payment service that has not applied itself specifically to operating inside of and protecting the CBD industry.
At any point, that company can close down your CBD merchant services without telling you anything beforehand. If your customers are used to transacting with you through that platform, you could have months of downtime before you can sell to them again. Your payment gateway is truly a gateway to your customer base. Having the ability to process credit card payments is vital to any company inespecially online. If you are starting a company that you know may be disputed, then simply getting a PayPal and hoping for the best is haphazard at the very least.
Leap Payments is the go-to, trusted CBD merchant account provider that you need to ensure that your customers have a reliable payment solution. We have been working with CBD companies for years and know the ins and outs of the industry.How to Accept Credit Cards on Website - Stripe Payment Gateway Setup WooCommerce WordPress Websites
In short, unlike other pop-up merchant service providers, we are here to stay and pride ourselves in backing the CBD industry through and through.
Leap Payments understands the high risk nature of CBD merchant accounts. CBD is an industry that does and will continue to provide countless benefits for thousands of people. The entrepreneurs and dreamers who bravely stand for this industry in the trials of today will reap the benefits tomorrow. Need a merchant account for cbd vapor products? Leap Payments has you covered. Because of our direct banking solution, we are able to offer credit card processing for vape CBD products, completely transparent and without the over-inflated prices.
With Leap as your processor, you can boost your businesses growth through debit and credit card payments today. We minimize your processing chargeback risks and offer sensible processing rates with no hidden fees, helping to maximize your profit margins. As for approvals, we understand the cannabis industry specifically. We will work with you to ensure that your business is fully compliant and ready for underwriting to get approved.
You will also never have to worry about us arbitrarily closing your account without notice. Why give them all of the power while you take all of the risk?The following categories of businesses and business practices are restricted from using the Stripe Service "Restricted Businesses". Restricted Business categories may be imposed through Network Rules or the requirements of our Financial Services Providers.
In certain cases, businesses listed below may be eligible for processing with explicit prior approval from Stripe.
Note, however, that businesses that offer illegal products or services are never eligible to use the Stripe Services. The types of businesses listed in the right column are representative, but not exhaustive. If you are uncertain as to whether your business is a Restricted Business, or have questions about how these requirements apply to you, please contact us. By registering with us, you are confirming that you will not use the Service to accept payments in connection with the following businesses, business activities, or business practices, unless you have received prior written approval from Stripe.
If you have any questions about supported businesses, don't hesitate to get in touch. Virtual currency or stored value Virtual currency that can be monetized, resold, or converted to physical or digital products and services or otherwise exit the virtual world e.
On this page. Securities brokers; mortgage consulting or debt reduction services; credit counseling or repair; investment services; real estate opportunities; lending instruments.
Financial institutions, money transmitters and money services businesses, check cashing, wire transfers, money orders; currency exchanges or dealers; bill-pay services; crowdfunding; insurance; bail bonds; collections agencies; law firms collecting funds for any purpose other than to pay fees owed to the firm for services provided by the firm e. Virtual currency that can be monetized, resold, or converted to physical or digital products and services or otherwise exit the virtual world e.
Sales, distribution, or access to counterfeit music, movies, software, or other licensed materials without the appropriate authorization from the rights holder; any product or service that directly infringes or facilitates infringement upon the trademark, patent, copyright, trade secrets, or proprietary or privacy rights of any third party; use of Stripe intellectual property without prior written consent from Stripe; use of the Stripe name or logo including use of Stripe trade or service marks inconsistent with the Stripe Marks Usage Agreementor in a manner that otherwise harms Stripe or the Stripe brand; any action that implies an untrue endorsement by or affiliation with Stripe.
Counterfeit goods; unauthorized sale or resale of brand name or designer products or services; sale of goods or services that are illegally imported or exported. Lotteries; bidding fee auctions; sports forecasting or odds making for a monetary or material prize; fantasy sports leagues with cash prizes; internet gaming; contests; sweepstakes; games of chance including legal or illegal forms of gambling, internet gambling, sweepstakes and contests with a buy-in or cash prize; charity sweepstakes and raffles for the explicit purpose of fundraising.
Cannabis dispensaries and related businesses; sale of tobacco, e-cigarettes, and e-liquid; online pharmacies; prescription-only products including card-not-present pharmaceuticals; peptides and research chemicals; fake references or ID-providing services; age restricted goods or services; weapons and munitions; gunpowder and other explosives; fireworks and related goods; toxic, flammable, and radioactive materials; products and services with varying legal status on a state-by-state basis; goods or services, the sale of which is illegal under applicable law in the jurisdictions to which your business is targeted or directed.
Pornography and other obscene materials including literature, imagery and other media depicting nudity or explicitly sexual acts; sites offering any sexually-related services such as prostitution, escorts, pay-per view, adult live chat features; sexually oriented items e. Platforms that facilitate the publication and removal of content such as mug shotswhere the primary purpose of posting such content is to cause or raise concerns of reputational harm.
Sale or resale of a service without added benefit to the buyer; resale of government offerings without authorization or added value; sites that we determine in our sole discretion to be unfair, deceptive, or predatory towards consumers. Engaging in any form of licensed or unlicensed aggregation of funds owed to third parties, factoring, or other activities intended to obfuscate the origin of funds; payment facilitation.