Solutions for Problems That Affect High-risk Payment Processors of CBD

To learn the solutions to the problems that affect the high-risk payment processors you first must know how CBD is different from the other business.

The CBD is a completely new industry. However, it is growing rapidly but still many people are unaware of the CBD. Also, the rules set by FDA for CBD are not clear. They confuse the legal status of the CBD business.

As CBD business is a high risk the payment processors of the CBD are also high risk. To find out the solution for the high-risk payment processors of CBD. You must know the main factors that make it high risk.

Why Are the Payment Processors of CBD Products High-risk?

Many new businesses launch every day, but their payment processors are not considered as risky as CBD payment processors why? Three main reasons make CBD payment processors high risk.

  • Legislation status.

  • Risk of chargebacks.

  • Reputation.

These are the three main reasons or factors that make CBD payment processors high risk and differentiate the CBD business from other types of business.

Now, the answer is how these factors make CBD payment processors risky. So, here is the answer for you.

First, if you know that the legal status of the CBD business lies in the gray area. The rules according to CBD are not very clear and they cause a lot of confusion. This is the factor that makes CBD high-rate payment processors risky.

The second factor is the risk of chargebacks. As the CBD business is new mostly customers are not fully aware of these products. This increases the rate of cashback to the customers and makes your CBD business risky.

The third factor relates to the second factor when the rate of the cash back to the customer increases then the reputation of the business starts to decrease and as a result, makes the CBD business risky.

These are the main factors that not just make your CBD business risky but also cause risk in high payment processors.

Why Are Payment Processors Required for Selling CBD Products?

Payment processors are not just required for selling CBD products. They are required for all those businesses that provide an option of credit card payments to their customers.

As the payment processors enable you to accept or process the credit card payments. So, when you start your business at a wider range or want to sell your products as CBD products online you must require payment processors.

It also improves customer service by providing the expanded payment options.

This is the reason that payment processors are almost necessary because now customers prefer to pay through credit or debit card rather than to pay cash. So, if you don’t provide your customers this option your customers may seek alternative points for buying.

But there is a difference in the payment processors required for selling CBD products and the payment processors required for selling any other products. 

This difference is due to the legal status of the CBD business. The difference is that CBD payments processors for CBD business are considered risky due to the reasons discussed above.

Short Note on the Difference Between the Payment Processor and Payment Facilitator:

The words payment processor and payment facilitator seem to be the same, but they have some differences along with similarities. Both provide a gateway of payment to you, but one is riskier than the other.

Payment Processor:

The payment processors provide you an individual merchant account for your CBD business. The payment processor provides you many payment options and minimizes the risk of fraud.

Payment Facilitator:

In contrast to the payment processor, the payment facilitator can provide you a shared merchant account. It increases the risk of fraud.

So, in contrast, payment processors are more preferred than the payment facilitator due to the low-risk factor.

What is CBD Merchant Processors?

CBD merchant processors are companies that provide merchant accounts for CBD businesses. The merchant account is used to accept credit cards and debit card payments. This is the most secure way for the payment for the CBD business.

Due to the legal status of the CBD, the CBD product payments are high risk. So, keeping in view the following points, problems faced for CBD payments must be solved. 

Now, below is the complete guideline for you which factors are considered while getting a merchant processor account.

  • Accept high-risk payments.

  • Provide easy integration.

  • POS availability.

  • Low fee.

  • Reasonable contracts.

  • Customer support.

Accept High-risk Payments:

As, because the CBD industry is new, and its legal status is in the gray area so many problems can occur such as chargeback and frauds.

So, your CBD merchant processors must be able to deal with all these things.

Provide Easy Integration:

Making an e-commerce store on any platform requires effort and once you set your e-commerce store on any platform it is very difficult to shift it on any other platform.

Shifting an e-commerce store to any other platform is both time-consuming and costly. So, the CBD merchant processors must provide easy integration.

POS Availability:

POS (point of sale) is very helpful to you as you don’t need to do the administrative duties because POS helps you to assist in both online and offline payments.

Low Fee:

Providing all these services the merchant processors have a fee. So, in selecting your merchant processors make sure that their fees must be reliable to you.

Reasonable Contracts:

Not all merchant processors require you to sign a contract with them. Everyone has different conditions and fees. While selecting a merchant account for your CBD business make sure that you do not sign long-term contracts.

Long-term contracts cause problems. So, go with the merchant processor that provides reliable conditions.

Customer Service:

Make sure the merchant processor you select will provide good customer service. Ask them how they handle the customers.

Best CBD Merchant Processors:

Below are the examples of some companies that provide merchant accounts for CBD business.

  • NMI.

  • Pay Kings.

  • Easy Pay Direct.

  • i-Pay Total.

  • Payment Cloud.


NMI is one of the best CBD payment processors as it provides very expanded payment options. It has all the qualities that must be in a good merchant processor. Some highlighted features provided by NMI are;

  • It accepts credit cards, debit cards, and ACH.

  • It is easily integrated with e-commerce platforms.

  • Its monthly fee is only 10$.

  • It also provides good customer support.

Pay Kings:

It is a highly reputed payment processor for CBD businesses. As, because of amazing features it provides. Some of its features are given as;

  • Provides integration for many e-commerce platforms.

  • Affordable rates.

  • Accept telephone and mail orders.

  • Provides cashback.

  • Provides precautions for fraud.

  • Virtual terminal.

Easy Pay Direct:

It is one of the payment processors that was launched in 2000. It not just provides payment gateways for high-risk companies but is equally famous in the sector of low-risk companies. Some of its features are given as;

  • Not required any early termination fees.

  • Provides good customer support.

  • Accepts direct mobile transactions.

  • Affordable fee.

i-Pay Total: 

The i-pay total provides payment processors to high-risk companies around the globe. Some of its features are;

  • Provides multiple banking solutions.

  • Accept mobile payments.

  • 24 Hours customer service.

  • It can reduce chargebacks.

Payment Cloud:

A payment cloud is another amazing CBD merchant processor due to its features. It provides fee virtual termination for CBD business so that your business can boost. Some of its features are;

  • Provides 24 hours customer service.

  • Affordable fee.

  • Provides POS.

  • Accepts credit cards and debit card payments.

  • Accepts mobile payments.

  • Free virtual terminal.

Some Tips For Selecting Payment Processors:

When you know that the payment processors are necessary for your CBD business. Then how can you select a payment processor?

For selecting a good payment processor, you must consider the following factors.

  • What should be the service cost for the payment processor?

  • What facilities are they provided such as security, virtual assistance, payment options, etc.?

  • The most important thing is does the payment processor supports the country of your online store?

  • Must provide 24 hours customer service and support.

  • The contracts must be reliable.

  • Make sure that the payment processor will accept high-risk payment transactions.

These are the factors that you must consider while selecting a payment processor.


The above discussion contains all the solutions for the problems that you faced while handling your CBD payments. It does not doubt that the CBD payments are high risk but if you consider the above points while selecting a payment processor the risk may reduce.

Author - Noah Nicholls

Noah Nicholls is a full-time Writer, Traveler, and Marketing Expert who is Currently Working for CBD-Boxes. Noah Nicholls writing relates to a range of subjects such as CBD and health.


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