does paypal process cbd payments

Does paypal process cbd payments

If you’ve ever tried to sell CBD products online, you understand the depth of the struggle in trying to secure an online account. Shift Processing specializes in both brick and mortar and online cbd accounts with a 99% approval rate for our cbd merchants.

Most processors will charge ridiculous rates to high risk merchants because they know that you are probably desperate for a processor. Get a merchant account that is cheaper than the rest, without hiding fees that will grow over time.

why not just accept cash?

Square is currently working on a credit card processing solution to allow them to be able to accept the payments on CBD products. However, this solution is currently just being tested with a few different CBD businesses on an invitation only basis. So, there could still be a while until Square has CBD ready payment processing solutions. Square overall, however, tends to have pretty high fees and usually only works well with small businesses because of those processing fees.

Processing CBD sales through PayPal is a huge risk. If they decide that you are too high risk for them, they have the right to, without warning, shut down your merchant account. The lack of warning provided to you means that you won’t have time to find another processor before they decide to shut you down. You’ll have to rely only on cash purchases until you’re able to find a processor that is willing to partner with high risk businesses.

Why Shift is Good for CBD Businesses

However, their standard fees start off at a fairly expensive rate, and with CBD payment processors having higher rates across the board than other high risk industries, will almost definitely grow even more costly.

The software, or payment gateway piece, Authorize.Net, has historically worked very well for site owners when connected to a CBD-friendly merchant account. Often, and unfortunately, site owners do not realize this and end up with a payment gateway connected to a processor that will not allow CBD sales.

Only sell hemp or CBD products through your CBD processor account. You want to make sure that you only process products that fall within the specific criteria outlined when you applied with the card processor. Many will outline that only a particular product type is allowed to be processed through it. In other words, if you sell pipes, glassware, or other paraphernalia, you should use a separate payment gateway or credit card processor for these different product types – likely on a different URL. Some products, like vape and CBD, can be combined, but it depends on your business. Again, contact us with any questions.

Due to the complex restrictions and ever-changing regulatory environment, we feel that qualified legal counsel is essential. We also expect payment processors to react to this new law rapidly and feel that online merchants should plan on payment processing restrictions as they relate to selling vape online.

11/22/2019 The list of shopping carts that work for CBD is growing

Sources and resources:

Like most things, there is no shortcut when selling a regulated product like CBD or hemp online. In order for a CBD merchant to accept credit cards on a major platform like Shopify, WooCommerce, BigCommerce, Squarespace, Weebly, or Wix, CBD websites need to go through the proper steps – this involves a professional website, certificates of analysis (CoAs), clear terms and conditions, a well thought through policy on health claims, and the financial ability to promote your CBD products.

Canada to US CBD more complex

It appears that in late 2020 and early 2021, banks began catching on, and it has garnered scrutiny. Based on our discussions, merchants that tried this method are finding that although their customers can pay them, their payment processor’s bank is often holding their funds. Their dream of seamlessly converting crypto to US dollars has vanished – just as most alternative CBD payment methods do.

We have spent some time this week speaking to independent agents and providers, and we have come up with a list of popular shopping carts and site builders whose users have been able to successfully set up credit card processing for CBD in the past week.