By saumi February 24, 2025
The CBD industry continues to grow, but it remains classified as high-risk due to evolving regulations and financial restrictions. This makes finding the right payment processor crucial for CBD businesses to ensure smooth, secure, and compliant transactions. Many traditional processors avoid working with CBD merchants, so selecting a provider that specializes in high-risk industries is essential. This guide explores the challenges of CBD payment processing, how to choose the best provider, and the top processors available, helping businesses navigate the complexities of accepting payments seamlessly.
Is CBD Considered a High-Risk Industry?
Even with its growing popularity and legalization in many areas of the U.S., the CBD industry is still considered high risk for several reasons. One of the major factors behind this is the growing regulatory landscape with the FDA working to establish more concise guidelines for the CBD industry.
Due to strict oversight and regulatory requirements, CBD businesses face several challenges, especially in payment processing. Most of the traditional financial institutions and payment getaways still hesitate to support CBD payments because of legal risk factors.
However, this does not limit the ability to run a successful CBD business. By choosing a payment processor that specializes in high-risk industries you can easily navigate your CBD business with a smooth and reliable transaction.
How to Choose the Right CBD Payment Processor
Choosing the right payment processor for your CBD business requires careful consideration due to the industry’s regulatory complexities. As many mainstream payment processors hesitate to support CBD, it’s essential to find the right provider that understands your business needs and tailored solutions for a more secure and streamlined user experience: Here’s what to consider:
Find a CBD-Friendly Processor
Many major payment processors, such as PayPal and Stripe, don’t support CBD payments due to high-risk challenges. Instead, search for providers with experience in CBD payments. These processors understand the unique challenges of your business and can offer tailored solutions to ensure smooth operations.
Compare Fees and Pricing
CBD payment processor costs can vary significantly. For this pay close attention to setup fees, monthly prices, transaction fees or any hidden charges in the future. Always select a processor that offers transparency in price and budget structure that aligns with your business.
Prioritize Security and Compliance
Since CBD businesses are at a higher risk for chargebacks and fraud, ensure the processor provides secure payment gateways, PCI compliance, and fraud prevention tools. Compliance with state and federal regulations is also crucial, so choose a provider that actively monitors industry guidelines.
Understand Documentation Requirements
CBD payment processors may require specific documents, such as business licenses, product details, and compliance certificates. A reputable provider should have a structured process for gathering and verifying these documents to ensure your business meets all legal requirements.
Check for Seamless Integration
If you run an online store or use a POS system, the payment processor should integrate easily with your existing setup. Some platforms, like KORONA POS, offer processing-agnostic solutions, allowing you to switch processors without disrupting your operations.
Evaluate Customer Support
Payment processing issues can impact your revenue, so choose a provider with reliable customer support. Look for 24/7 assistance, industry expertise, and responsive service to address any concerns quickly.
Look for Additional Features
Some processors offer extra services like chargeback protection, recurring billing, and multi-currency support, which can be beneficial depending on your business model. Merchant account services can also help streamline credit card transactions without relying on third-party providers.
Seek Industry Insights
Consult other CBD business owners, industry experts, or legal professionals to get recommendations on trustworthy payment processors. Engaging in CBD business forums or associations can also provide valuable insights from those who have navigated similar challenges.
By carefully evaluating payment processors based on these factors, you can secure a reliable and compliant solution that enables smooth transactions while protecting your business from potential financial disruptions.
Top 10 Best CBD Payment Processors 2025
Finding the right payment processor for your CBD business is essential due to the industry’s high-risk classification. Many traditional processors refuse to work with CBD companies, making it crucial to choose a provider that understands the industry’s unique challenges. Here’s a list of the top 10 CBD payment processors that offer secure and reliable solutions.
1. Inovio
Inovio is a relatively new player in the payment processing industry, founded in 2016. Despite its recent entry, the company brings extensive experience by working with established backend payment networks. Inovio offers an omnichannel platform, allowing CBD businesses to customize their payment experience based on their needs, simplifying an otherwise complex process.
2. Merrco Payments
Operating out of Canada, Merrco specializes in payment solutions for legal cannabis and CBD businesses. They provide multi-channel support, enabling businesses to process transactions in-store and online. Merrco is compatible with major credit cards, debit cards, and prepaid cards, making it a versatile option for CBD merchants.
3. OffshoreUniPay
OffshoreUniPay is known for catering to high-risk industries, making it a great fit for CBD businesses. They offer offshore merchant accounts, which can be beneficial for businesses looking to bypass strict local regulations. OffshoreUniPay provides flexible processing solutions, supporting both small and large-scale CBD operations.
4. Easy Pay Direct
Specializing in high-risk industries, Easy Pay Direct is a solid choice for CBD payment processing. They offer secure solutions with quick payouts, making them particularly useful for newer businesses. Their tailored services help CBD merchants get the best processing rates while ensuring regulatory compliance.
5. SMB Global
SMB Global provides customized payment processing for CBD businesses, including offshore merchant accounts. Their solutions offer greater flexibility, making them ideal for businesses that require adaptable processing options. With a strong reputation for customer service and reliability, SMB Global is a trusted name in high-risk payment processing.
6. BestMerchantRates
BestMerchantRates, formerly known as PayWize, is a smaller provider that specializes in helping CBD businesses navigate financial challenges. Despite being founded in 2017, the company has already built a strong presence by supporting CBD oil merchants and medical cannabis dispensaries across the U.S.
7. PaymentCloud
PaymentCloud is a high-risk payment processor that offers seamless integration for CBD businesses. Their user-friendly setup process makes it easy for merchants to start accepting payments. With competitive rates and dedicated account managers, PaymentCloud provides personalized support tailored to the needs of CBD merchants.
8. Square
Square entered the CBD payment processing market in 2019 and has since expanded its offerings significantly. It is a great choice for both small and high-volume CBD businesses, providing flexible solutions for those transitioning from cash-only operations. Square’s established reputation and easy-to-use platform make it a reliable option.
9. PayKings
PayKings is a well-known high-risk payment processor that specializes in CBD transactions. They have an extensive network of banking partners and PSPs, allowing them to offer a wide range of solutions to CBD merchants. Their expertise in working with businesses that struggle with traditional processors makes them a go-to choice for many in the industry.
10. Bankful
Founded in 2016, Bankful is a newer payment processor that has quickly gained recognition for its innovative approach. They provide seamless integration with popular eCommerce platforms like Shopify, WooCommerce, and BigCommerce, making it easier for CBD businesses to set up online payments.
Essential Tips for CBD Payment Processors
Finding the right payment processor for your CBD business is critical for smooth transactions and customer satisfaction. Here are some key tips to ensure a seamless payment experience for both you and your customers.
Offer Multiple Payment Methods
Providing a range of payment options can significantly enhance your customers’ experience. While some may prefer credit or debit cards, others might opt for digital wallets or direct bank transfers. Limiting payment methods can deter potential buyers, so ensure your payment processor supports various payment options.
Allow Guest Checkout
Forcing customers to create an account before making a purchase can be a hassle and may lead to abandoned carts. Enabling a guest checkout option speeds up the payment process and improves the overall user experience. The simpler the checkout process, the higher the chances of completing sales.
Avoid Redirecting Customers to Other Platforms
Redirecting customers to external websites for payment processing can create confusion and reduce trust. Many buyers feel uncomfortable when they are taken to a different platform to complete their payment. Choose a payment processor that allows transactions to happen directly on your website to provide a seamless experience.
Minimize Required Customer Information
Request only the necessary details to complete the transaction efficiently. If additional information is required, clearly explain why it is needed to reassure buyers.
Maintain a Consistent Design
Ensure that your checkout and payment pages match the overall look and feel of your website. A consistent design builds trust and reassures customers that they are still on your platform. Sudden changes in layout or branding can create skepticism and lead to cart abandonment.
Make Error Handling Easy
Mistakes during checkout are common, so your payment processor should have an intuitive error-handling system. If a customer enters incorrect details, clear and visible error messages should guide them on how to fix it. Additionally, auto-saving entered information can help customers correct errors without re-entering everything from scratch.
Conclusion
A smooth and efficient payment process is essential for the success of your CBD business. By selecting the right CBD payment processor and implementing these best practices, you can enhance customer satisfaction, increase conversion rates, and build a trusted brand. Prioritize security, ease of use, and flexibility to ensure a seamless transaction experience for your customers.