A question that our office is frequently being asked is:
Now that the Farm Bill has been sent to the president for signing and Hemp is expected to be fully removed from the list of controlled substances, can we expect more banks in the USA to allow for credit card processing of CBD or hemp related products?
As of the date of this article, the answer to this question is
“It Depends!”
CBD business is both a high profit & high-risk business!
In reality, it's getting harder and harder to get approved for CBD Merchant Account due to its high-risk nature. Read more about why CBD Merchant is consider a high-risk merchant! Credit card processing service like Paypal, Stripe, and Square will shut down any CBD merchant account without hesitation.
Fortunately! We can help you get approved! Simply apply today!
ARE ALL CBD PRODUCTS THE SAME AND ELIGIBILE FOR CREDIT CARD PROCESSING?
CBD products can come from industrial hemp or from marijuana plants.
CBD products that exclusively are derived from industrial hemp and have less than 0.3 percent THC are the only CBD products eligible, as of the date of this article, that can be considered for the approval of a credit card processing merchant account.
Any CBD or Terpene product(s) derived from the marijuana plant even if the THC is less than 0.3 percent are currently not eligible for the approval of a credit card processing merchant account.
ARE HEMP PRODUCTS ELIGIBLE FOR CREDIT CARD PROCESSING?
Absolutely! Products that come from industrial hemp and have less than 0.3% THC are eligible for the approval of a credit card processing merchant account.
Restrictions that apply and that can affect approval for either a Hemp or CBD credit card processing merchant account are explained below.
IF THE 2018 FARM BILL PASSES DOES THAT MEAN WE WILL HAVE MANY PROCESSING OPTIONS AND EASILY GET APPROVED FOR CREDIT CARD PROCESSING?
The FDA and each state government have the final say regarding hemp and CBD products such as food, cosmetics, and supplements.
From a banking perspective just because something is legal does not mean any bank in the USA will want to be associated with a particular product, market segment, or industry. For example, certain types of adult toys, videos, and products are legal yet many banking institutions in the USA want nothing to do with those products, market segment, and industry.
Banking institutions are very protective of their brand and are careful in what they allow themselves to be associated with especially when it comes to allowing for the processing of credit cards.
We also don’t know how long it will take any bank institution in deciding whether to offer credit card processing for hemp or CBD products, once any additional legislation passes.
Hypothetically let’s say hemp and hemp derived CBD is totally legal it still might take months or longer before any additional banking institution allows for credit card processing for this industry.
However, in our opinion, it is possible and likely that additional banks in the USA will offer to process for merchants that sell hemp and hemp derived CBD products.
WHAT TYPE OF RESTRICTIONS APPLIES?
USA Domestic Bank Now Accepts CBD Merchant!
Regardless the result of 2018 farm bill vote, most USA domestic banks will stay away from CBD business. However, the good news is that one of the top USA bank now is willing to take the risk and start accepting USA based CBD merchant application!
Read more about USA Domestic CBD Merchant Account from HRC!
Provided below are some common misconceptions and restrictions:
Regardless of the legality of hemp and CBD, a common issue many merchants struggle with is why they need to make changes to their website in order to be approved for credit card processing.
Currently, the credit card processing solutions we offer do not approve a merchant that displays marijuana images and pictures and also uses and displays the word “cannabis” anywhere on their website. In short banking institutions currently, don’t want to be associated with the word “cannabis” and any image(s) of cannabis.
As a merchant, you will need to figure out how to not use the word cannabis nor any cannabis images on your website.
Payment solutions we offer for hemp and hemp derived CBD vary in the products they will or will not consider. For example, we might have one payment solution that allows for the sale of CBD Vape products and cartridges and another payment solution that does not.
A common disclaimer that is required of merchants to put on their Hemp or CBD website is as follow:
Our products have less than 0.3% THC and are legal in all 50 states.
HOW DO I GET CREDIT CARD PROCESSING FOR MY HEMP OR CBD BUSINESS?
You can simply apply now by clicking the following “Apply Now” button to kick start your CBD merchant application process. It only takes three easy steps to apply your CBD merchant account.