If you’re planning to start a CBD business, you’re probably aware that one of the bigger challenges your business will face will be related to the processing of the payments made by customers.
To accept online payments from your CBD store, you’ll need to partner with a payment processor that accepts CBD payments, and you may also need the support of a bank that allows a CBD account.
CBD products are legal at both the state and federal levels, as long as they contain hemp-derived CBD and minuscule THC. But the sale and marketing of CBD products usually have a complex nature.
When banks and payment processors decline to handle transactions that originate from CBD businesses, one of the reasons given is that CBD accounts have a greater susceptibility to fraud and chargebacks.
But the thing is, there are payment processors and banks that will support your CBD business. And so, when setting up your CBD business, make sure that you partner with convenient financial institutions.
In this post, we highlight various banks and payment processors that promote CBD companies.
Banks that Support CBD Businesses
Banks play a critical role in the success of a business. They allow you to create an account for receiving payments from customers and also perform different tasks related to business funds. Additionally, banks may provide you with loan facilities to help grow your business and increase your profits. The following banks are proven to be CBD-friendly:
- Alterna Savings
- Chase Bank
- Credit Union 1
- Customers Bank
- First Citizens Bank
- First Federal Bank
- Florida Capital Bank
- Florida Capital Bank
- Fresno First Bank
- HomeBank of Arkansas
- JBT Bank
- Keystone Bank
- North Bay Credit Union
- NPS Bank
- Oklahoma State Bank
- Partner Colorado CU
- Patelco Credit Union
- PenFed Credit Union
- Safe Harbor Financial
- Silicon Valley Bank
- The MAPS Credit Union
- The Numerica Credit Union
- The Salal Credit Union
- Timberland Bank
- West Town Bank & Trust
- West Town Bank & Trust
Payment Processors that Support CBD Businesses
Payment processors describe the technology that allows online transactions to be done. You want to partner with a payment processor that facilitates seamless financial transactions whether a customer is paying with their card or bank account. The following payment processors support CBD businesses.
- Centurion Payment Services
- Easy Pay Direct
- Easypay Direct
- eMerchant Broker
- Leap Payments
- Merrco Payments
- Pay Diverse
- Payment Cloud
- Pinwheel Pay
- Shift Processing
- Payments Max
Why Do Some Banks and Payment Processors Reject CBD Businesses?
Some banks and payment processors distance themselves from CBD businesses for a couple of reasons:
1. Association with Cannabis
You know, America is a Christian nation, and cannabis is somewhat taboo. CBD is typically derived from the hemp plant, a cousin of the marijuana plant, and some institutions don’t care about the differences.
Whereas marijuana contains a high degree of psychoactive compounds called THC, CBD is non-psychoactive, as it contains minuscule levels of THC, and it has non-addictive properties.
Financial companies that reject CBD on the grounds of being connected to cannabis are usually making that decision from a point of ignorance.
2. High Chargebacks
CBD businesses have been categorized as one of those businesses that are susceptible to high cases of chargebacks, especially since many CBD companies have generous money-back guarantees.
And so, being aware of this fact, some payment processors become unwilling to take the risk of accommodating CBD businesses, because they might strain various anti-fraud systems.
3. Complex Legality
Although CBD products are legal in America, certain conditions or instances can potentially push the extraction and sale of CBD products into the legally prohibited territory. The last thing a payment processor wants is to get entangled in a needless lawsuit because of associating with such businesses.
Does PayPal Accept CBD Sales?
No, PayPal restricts CBD merchants from accepting payments on their platform.
Does Stripe Accept CBD Sales?
No, Stripe doesn’t accept or facilitate any CBD payments.
Does Worldpay Accept CBD Sales?
No, Worldpay prohibits any payments related to cannabis.
Why All Banks Will Accept CBD Businesses in the Future
All banks in the USA will eventually have no issue with CBD businesses. Progress is being made in legalizing CBD for medicinal use and eliminating ambiguous provisions that may taint CBD’s legality.
By the year 2025, we expect that it will be legal to sell CBD products for medicinal purposes. And so, payment processors and banks won’t have any solid reason to shut out CBD merchant accounts.