Why this is classified high risk
CBD is federally legal under the 2018 Farm Bill, but the largest payment aggregators — Stripe, Square, PayPal, and Authorize.Net's default acquirer — prohibit hemp and CBD regardless of compliance. The reason isn't legal; it's that their underlying acquiring banks don't want the MCC exposure.
A real CBD merchant account uses an acquirer that specifically underwrites hemp. Approval requires a compliant website (lab reports, age gate, no medical claims) and clean processing history, but it's routine for established brands.
Features included
Tokenized card vault, retry logic, account updater for CBD subscriptions.
Sell internationally with EU/UK acquirer pairing.
Verifi RDR + Ethoca deflect pre-disputes before they become chargebacks.
We review your website, COAs, and labeling before submission.
Underwriting documents you'll need
- Merchant application
- Government ID (25%+ owners)
- Voided business check
- 3 months bank statements
- 3 months prior processing (if any)
- EIN letter / formation docs
- Compliant website with SSL, refund, terms, privacy
- Industry-specific compliance docs (see below)
- Certificate of Analysis (COA) for each SKU
- Source of hemp supplier documentation
Pricing factors
Standard CBD pricing ranges 3.45% – 4.95% + $0.25 depending on volume, chargeback ratio, and processing history. Reserves are typically 5–10% rolling 180 days for newer brands.
Established brands with strong history routinely qualify near the low end and step down reserves after 6–12 months.