9+ Shopify CBD Payment Processors & Key Considerations

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shopify cbd payment processor

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Want to find the right Shopify CBD payment processor? Within the United States, sales of CBD products are expected to hit nearly 16 billion dollars by 2026. Therefore, many companies are investigating the exciting prospects for selling CBD products online using Shopify. However, CBD e-commerce presents distinct obstacles, notably in payment processing.

This detailed article covers the top 9 Shopify CBD payment processors, helping you choose the right one for your company. We'll compare each processor's characteristics and discuss important factors to consider before choosing.

Understand The Basics Surrounding Shopify CBD Payments

First, you need to know Shopify doesn't offer a dedicated "CBD payment" option. 

Also, CBD merchant processing is not available via PayPal and Stripe. These payments will freeze and terminate your account if they discover you sell CBD on Shopify or another ecommerce site. CBD merchant accounts are terminated if the company model is high risk after first approval, which is always the case.

Read more: Understanding Shopify's Restricted Product Policies.

However, there's still hope: third-party payment processors have come to the rescue. These specialized providers cater to high-risk industries like CBD and have the necessary compliance measures. They can accept transactions for hemp-derived CBD products that meet the legal threshold of less than 0.3% THC.

Sell CBD on e-commerce

Sell CBD on e-commerce

You can still give your customers easy and safe ways to pay by looking into these other payment providers. This will help your Shopify CBD business reach its full potential:

Processor

Traditionally, many businesses in this industry have faced challenges finding reliable payment processors, point-of-sale systems (POS), and flexible contracts.

CBD Merchants Account Payment

CBD Merchants Account Payment

The good news? There are now specialized processors catering specifically to the CBD industry, allowing you to offer your customers convenient and secure payment options.

  • Accept payments: Overcome the hurdle of Shopify Payments not processing CBD transactions.
  • Offer flexibility: Choose from various processors with competitive fees and contract terms suited to your specific needs.
  • Ensure compliance: Partner with processors that adhere to relevant regulations and legal requirements, giving you peace of mind.

By exploring the growing pool of CBD-friendly processors, you can unlock convenient and secure payment solutions, paving the way for success on Shopify.

Gateway

For CBD businesses on Shopify, finding the right payment gateway is crucial. You should explore alternative solutions since Shopify Payments doesn't handle CBD transactions.

Here's what to remember:

  • High-risk processors: CBD falls under the category of high-risk products for many traditional payment processors. Look for gateways specializing in handling such industries, as they understand the specific regulations and requirements.
  • Potential for additional fees: High-risk processing may incur additional fees compared to standard transactions. However, this cost helps mitigate the risk of account termination or unexpected disruptions.
  • Reduced risk of account closure: Choosing a reputable gateway experienced with CBD sales can minimize the chance of random account closure, ensuring your business can run smoothly.

By understanding what payment platforms do and selecting the best one for CBD products, you can provide your consumers with a safe and secure means to pay, allowing your online company to thrive. 

Bank

The legality and regulatory environment surrounding CBD can feel like a complex maze. The 2018 Farm Bill legalized hemp-derived CBD federally, but state regulations differ. Different rules and limits apply depending on your area.

CBD is considered high-risk by financial institutions, adding to its complexity. CBD firms may have trouble getting banks

So, not all banks accept accounts associated with CBD businesses. Carefully research and choose a bank comfortable working with your industry.

Top 9 CBD Payment Processors Compatible With Shopify

This part will show you the top 9 CBD payment companies that work with Shopify. We will give you all the information you need to make an educated choice, whether you value low costs, easy integration, or strong security measures:

1. DigiPay

Think of DigiPay as your one-stop solution for processing CBD payments. We offer fast acceptance and a full credit card suite, which is different from many other companies. This means that you can easily accept credit cards from your users.

DigiPay’s homepage

DigiPay’s homepage

But wait—there's more! DigiPay offers various goods, enabling you to concentrate on what you do best: developing fantastic items for your clients. This includes relaxing body care topicals such as lotion balms, hair care enriched with hemp-derived CBD, and even tasty CBD edibles.

Worried about fraud or chargebacks? Don't be. DigiPay utilizes advanced technology to validate digital identities. This translates to saved time and money for you, so you can focus on growing your business.

DigiPay's feature

DigiPay's feature

Finally, we know consumers value flexibility. DigiPay enables you to accept ACH check processing, currency conversion, cash discounts, gift cards, digital wallets, loyalty programs, and credit cards. This makes checkout easy for clients, promoting repeat business.

2. eMerchants Brokers

eMerchants Brokers integrates seamlessly with your Shopify store, displaying your whole CBD product line, from topical creams and vape pens to delicious edibles and pre-rolled flowers. This makes it easy for customers to browse and purchase their favorites.

eMerchants Brokers’s homepage

eMerchants Brokers’s homepage

One of the main advantages of eMerchants Brokers is their focus on reducing processing costs. They help you accept credit cards at competitive rates, ensuring you keep more of your hard-earned profits.

eMerchants Brokers don’t have hidden fees

eMerchants Brokers don’t have hidden fees

Their dedicated support team is always available to answer your questions and assist you with any challenges you may face. Whether you prefer email, live chat, or phone calls, they help you navigate the process smoothly.

eMerchants Brokers goes beyond basic processing. They offer additional features like ACH check processing, an affiliate program, and even free shopping carts to help you maximize your revenue potential.

3. Inovio

Inovio revolutionizes online payments by removing restrictions. They're not just another payment gateway. Established in 2016, their team has over 8 years of experience building global relationships with processors, acquirers, and payment service providers.

Inovio’s homepage

Inovio’s homepage

In love with coding? Speaking your language. Their versatile APIs work with any programming language, making customization easy.

An omnichannel platform lets consumers choose the appropriate payment method for them and their company, simplifying a complex procedure.

Don't settle for a one-size-fits-all solution. Choose Inovio and experience a payment processing platform built for modern businesses.

4. Bankful

Bankful is a rising star in the payment processing world. Despite its recent arrival, the company has quickly established itself as a leader in innovative payment technologies.

Bankful’s homepage

Bankful’s homepage

What sets Bankful apart? They work well with well-known e-commerce platforms like WooCommerce, Shopify, and BigCommerce. With this connection, businesses can easily accept funds on any site they choose. 

Also, Bankful accepts payments in several forms, including eCheck Plus, ACH, check imaging, and credit cards from Amex, Visa, and MasterCard. You don't have to pay exchange rates or other fees for accepting Bitcoin payments from people around the world. 

Bankful take payments in several formats.

Bankful take payments in several formats.

If you're looking for a modern and innovative payment processing solution, Bankful is worth considering.

5. Merrco Payments

Operating from Canada, Merrco is your one-stop shop for secure and compliant payment processing in the exciting world of cannabis and CBD. With over half the Canadian market, they bring a wealth of experience. Merrco understands the ins and outs of the cannabis and CBD industry, so you can rest assured you're in good hands.

Merrco’s website

Merrco’s website

Whether you're selling online or in-store, Merrco offers a secure and user-friendly solution for accepting payments. They process all major credit, debit, and prepaid cards domestically and internationally, making transactions smooth and hassle-free for you and your customers.

One of the first white-labeled digital payments platforms, their PayHQ platform is unique to their partner network. Also, Merrco's cloud-based, PCI DSS-compliant system saves all transaction data in one place and provides organizations with real-time data and insights into their payment products.

Merrco’s solutions
Merrco’s solutions

These payment processors also offer competitive pricing and reliable onboarding, ensuring you get the best value for your business. Plus, their dedicated support team is always available to answer your questions and guide you through any challenges.

As a Merrco client, you gain access to our network of trusted cannabis partners, which provides additional resources and support for navigating this dynamic industry.

6. NMI

Running a CBD business is exciting, but managing payments can sometimes be a hassle. Here at NMI, they understand your unique needs and are here to make things easier. 

NMI provides a CBD-specific unified commerce approach. This means you receive a complete solution for everything from payments to analytics.

NMI’s website

NMI’s website

NMI provides you with powerful tools to manage your merchant relationships effectively. With their combined CRM and underwriting features, you can onboard new merchants faster and stay organized.

NMI’S payment solutions

NMI’S payment solutions

NMI, which goes beyond just processing payments. They're your partner in growth. With their comprehensive solution, you can streamline your operations, gain valuable insights, and ultimately achieve your business goals.

7. PayKings

PayKings is your CBD merchant account's reliable payment processor. They have 24+ acquiring banking partnerships and is a specialist in CBD-related enterprises. Also, they expedite CBD merchant account approval for online payments.

PayKings’s website

PayKings’s website

At PayKings, they work hard to get your CBD merchant account up and running quickly so you can focus on what you do best – building your business.

Also, they know every penny counts. That's why PayKings negotiates your business's lowest possible processing rates, ensuring you keep more of your hard-earned profits.

PayKings’s services

PayKings’s services

Finally, account shutdowns can be a nightmare. PayKings works diligently to establish sustainable accounts that won't disrupt your business, giving you the peace of mind to focus on growth. If you encounter any account issues, PayKings can help you quickly navigate the recovery process and get your business back on track.

8. Square

Square entered the CBD processing game online and in-store and has been building a strong reputation ever since. Their experience and resources translate into a reliable and secure solution for your business.

Square’s website

Square’s website

Whether you're a high-volume seller or prefer a cash-only model, Square is flexible. They offer methods that can change as your business does, so no matter what size you are, you can still handle payments the way you need to. 

There are no hidden costs. When you process payments with Square, you will not be charged any setup costs, statement fees, monthly fees, PCI compliance fees, business card fees, or hardware leasing expenses.

They also enable clients to pay in installments using Afterpay. There is no danger. You get paid in full immediately, and they pay four interest-free payments over six weeks.

9. Easy Pay Direct

Easy Pay Direct is one of the most experienced players in the world of high-risk payment processing. This includes the CBD, cannabis, and hemp industries, which can be challenging to navigate for new businesses.

Easy Pay Direct’s website

Easy Pay Direct’s website

With over two decades in the game, they understand the needs of high-risk businesses.

Also, Easy Pay Direct tailors their services to your specific needs, whether you require a connection to credit card processors or domestic banks. This allows them to accommodate businesses of various sizes and models.

Easy Pay Direct’s services

Easy Pay Direct’s services

While specializing in high-risk industries, Easy Pay Direct also offers solutions for low-risk businesses in any sector. This makes them a versatile choice for a wider range of companies.

Key Considerations When Selecting A Payment Processor For CBD Products

Finding a suitable payment processor for your CBD business requires careful consideration, as traditional processors often don't work with CBD companies due to its legal gray area. 

Here are some crucial factors to keep in mind:

Experience With CBD

The CBD business is continually growing, with restrictions varied by state and municipality. A processor experienced with CBD will deeply understand these complexities and can help you navigate them seamlessly.

Also, traditional processors often shut down accounts associated with CBD due to perceived risk. A processor experienced with CBD will have established relationships and risk management strategies specifically tailored to the industry, 

Here's how you can assess a processor's experience with CBD:

  • Check their website and marketing materials: Look for explicit mentions of CBD processing services and testimonials from satisfied CBD clients.
  • Ask directly: Don't hesitate to ask the processor about their experience working with CBD businesses. Inquire about the number of CBD clients they serve, the length of their experience in the industry, and any specific challenges they've helped CBD businesses overcome.
  • Seek industry recommendations: Network with other CBD businesses and ask for recommendations on reliable payment processors. Industry associations and online forums can also be valuable resources for finding experienced processors.

Remember that using a payment processor with substantial knowledge of the CBD market will save you time, money, and hassle in the long term. They may be a trusted partner in negotiating the complexity of CBD payments, allowing your company to thrive.

Account Approval Rates

Account Approval Rates
Account Approval Rates

High account approval rates are essential for avoiding delays and interruptions in your operation. Inquire about the processor's approval procedure and success rate for CBD companies, especially.

Every day your account is seeking approval means possible missed revenues. High acceptance rates reduce this risk, ensuring that your clients may easily acquire your items and that you do not lose out on vital income.

It's important to understand that approval rates are not always publicly available. However, there are ways to gauge a processor's success rate:

First, to view industry reviews and comparisons, look for independent reviews and comparisons of CBD payment processors, which often mention historical approval rates or user experiences related to account approvals.

Also, look at client testimonials too. Seek out testimonials from other CBD businesses that use the processor. Contact them directly if possible and inquire about their experience with the approval process.

By completing careful research and asking the proper questions, you may select a processor that will enable you to start selling fast and confidently expand your CBD company.

Security And Compliance

A 2023 IBM Cost of a Data Breach Report found that the worldwide average data breach cost $4.45 million, a record. This shows the financial effect of a data breach on your firm, making strong security essential.

Noncompliance with CBD sector laws might result in severe fines. A processor that meets industry standards and laws reduces these dangers and assures legality. 

So seek processors with certifications. These certifications confirm that the processor follows industry-recognized security best practices.

FAQs

1. Do I Need A Special Merchant Account For CBD Sales On Shopify?

Yes, you will need a high-risk merchant account designed explicitly for CBD businesses. These accounts cater to industries with higher risk factors, typically due to regulatory complexities or potential chargebacks.

2. What Resources Are Available To Learn More About The Legal Landscape Surrounding CBD Sales?

The legal landscape surrounding CBD sales is complex and constantly evolving, so staying informed is crucial. Here are some resources to help you navigate the legalities:

Consult a knowledgeable attorney for specialized advice on your individual circumstances and location. Using these tools and getting expert assistance can help you better grasp the legal environment surrounding CBD sales and run your company legally.

3. Can I Use Shopify Payments If CBD Is Allowed In My State? 

No. While some states allow the sale of hemp-derived CBD products, Shopify Payments still prohibits processing payments for them, even in those states. 

For additional information on companies that cannot utilize Shopify Payments, see the Shopify Payments requirements. This does not prohibit you from using Shopify to run your company. It simply implies that you must engage with a third-party payment source.

Conclusion

Choosing an appropriate payment processor on Shopify is crucial for any CBD company. By carefully analyzing the considerations indicated in this article, you may choose a solution that fulfills your requirements while ensuring smooth, safe consumer transactions.

While a secure and reliable payment processor fosters trust in the transaction process, a beautifully designed website is your storefront's first impression. It should showcase your products, educate potential customers, and provide a seamless user experience.

One of the most excellent tools available to Shopify owners is the EComposer Landing Page Builder. This #1 Shopify Builder Page allows you to construct a beautiful and effective Shopify shop with eye-catching landing pages, comprehensive product descriptions, and a simple checkout process.

Use EComposer to design product pages

Use EComposer to design product pages

Try free EComposer today and see the difference the best drag-and-drop page builder, extensive design library, and powerful built-in features can make for your CBD business.

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