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CBD Payment Processing That Actually Works

Farm Bill compliance, THC thresholds, Delta-8 classification, state licensing, and the CBD payment processing landscape is a maze. We've mapped every turn. Watch the video to see how we navigate it for our merchants.

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We know the difference between "CBD" and "cannabis" in the eyes of an acquiring bank

Your product type, THC content, and business model determine which processors will work with you. We match you correctly from day one.

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Farm Bill Classification

The 2018 Farm Bill legalized hemp-derived CBD with <0.3% THC. We document your supply chain to prove Farm Bill compliance and position your products correctly for underwriting.

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THC Content & Testing

Delta-9 THC percentage is the line between legal CBD and controlled substance. We ensure your COAs, batch testing, and labeling documentation meet processor requirements.

Delta-8, THC-A & HHC

Intoxicating cannabinoids exist in a legal grey zone. We know which processors will work with these product lines and how to present the compliance case.

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Product Categories

Oils, edibles, topicals, vapes, flower, capsules, pet products, and each category carries different risk perceptions and MCC code requirements. We classify correctly.

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Sales Channels

E-commerce, retail POS, wholesale, marketplace, and your sales model determines your processing setup. We configure the right solution for how you actually sell.

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MCC Code Strategy

Visa and Mastercard have specific MCC codes for CBD/hemp. Using the wrong code gets you shut down. We ensure proper MCC classification from the start.

State-by-state compliance is the make-or-break for CBD merchant accounts

Federal legality means nothing if you're shipping to states where your products are restricted. We build the compliance case before underwriters ask.

State Hemp & Cannabis Licensing

Each state has its own licensing requirements for hemp-derived products. We document your state registrations, business licenses, and compliance certifications.

COA & Lab Testing Documentation

Third-party certificates of analysis showing cannabinoid profiles, heavy metals, pesticides, and residual solvents. We ensure your testing meets processor standards.

Marketing & Health Claims

The FDA hasn't approved CBD for most health claims. We review your website, product labels, and ad copy to eliminate unapproved claims that trigger underwriting rejections.

Age Verification & Shipping

Age-gating at checkout, ID verification for certain products, and state shipping restrictions for vapes and ingestibles. We verify your systems are audit-ready.

The vape & ingestibles complication

CBD vapes and ingestible products face additional scrutiny from card networks, especially after the PACT Act. If you sell these categories, your application needs a stronger compliance narrative. That's exactly what we build.

What CBD and hemp merchants ask before applying

CBD merchant accounts range from 4.5% to 7% depending on your product type, volume, and compliance documentation. Topicals and non-ingestible products get the best rates. Vapes and ingestibles are on the higher end due to additional regulatory scrutiny.

This happens constantly. Those platforms prohibit CBD regardless of Farm Bill compliance. You need a dedicated high-risk merchant account with an acquiring bank that specifically underwrites hemp-derived products. We get you set up with a processor that won't freeze your funds.

It depends on your processing history and product type. Many CBD merchants process with no reserve, especially those selling topicals with clean chargeback history. Newer businesses or those selling ingestibles may start with a small reserve that phases out after 3-6 months.

Third-party COAs (certificates of analysis) showing THC content below 0.3%, Farm Bill compliance documentation, proper product labeling without health claims, and a clear refund policy. If you're selling ingestibles, you'll also need manufacturing documentation.

7-14 business days for most CBD merchant accounts. The timeline is slightly longer than other verticals because underwriters review COAs and product compliance more carefully. We pre-build your file to minimize delays.

Limited options exist. Sezzle has approved select CBD merchants with strong compliance documentation, and PayPal Pay Later may be available if you already have an approved PayPal Business account. In-house subscription billing is the most reliable alternative for recurring purchases.

Ready to get your CBD business processing?

Complete the intake form and our team will match you with the right acquiring bank for your specific product lines and business model.

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