7 Payment Processors to Sell CBD on Shopify
Last updated: December 25 2024
CBD products are classified as high-risk due to legal and regulatory complexities. Many traditional payment gateways, including Shopify Payments, restrict transactions involving CBD. So, CBD merchants need to find reliable CBD payment processors for Shopify that cater specifically to this industry.
This guide will give you the top 7 CBD payment processors, additional payment options, and a step-by-step guide to integrating these processors into your Shopify CBD store.
Can You Sell CBD on Shopify?
Yes, Shopify allows merchants to sell CBD products where it is legal, but only under certain conditions. Merchants must comply with all applicable laws, including federal, state, and local laws in both your region and the regions you ship to, and meet Shopify's requirements for CBD sellers.
What Are Shopify’s Requirements for CBD Merchants?
Geographic Restrictions:
- Shopify’s CBD program is primarily available in the United States and Canada.
- Merchants must verify that CBD sales are legal in their jurisdiction.
Licenses and Documentation:
- Merchants must obtain and provide valid CBD licenses.
- They must also submit documentation proving compliance with legal THC limits (typically below 0.3% in the U.S.).
Product Compliance:
- CBD products must meet federal standards, including those set by the Farm Bill (in the U.S.).
- Proper labeling and disclosures regarding CBD content are mandatory.
However, Shopify’s built-in gateway - Shopify Payments, does not process CBD transactions. Merchants must use approved third-party CBD payment processors for Shopify to handle payments.
Top 7 CBD Payment Processors for Shopify
Since you can not use Shopify Payments, here are seven reputable payment processors compatible with Shopify for CBD transactions:
DigiPay
DigiPay is a premium payment processor specializing in high-risk merchant accounts, making it an ideal choice for Shopify CBD businesses. Their services cater to businesses facing complex regulations, offering flexible solutions that help mitigate risks while enhancing payment efficiency.
Key features
- DigiPay Payment Gateway: A robust platform designed to support seamless payment processing for high-risk industries like CBD.
- Fraud and Chargeback Management: Advanced tools to reduce fraud and manage chargebacks through proprietary integrations and real-time alerts.
- Tranzlytics Analytics: A cutting-edge system that predicts and prevents fraudulent activities, minimizing chargeback risks while providing customer insights for better marketing strategies.
- Customized Solutions: DigiPay offers personalized payment solutions tailored to your business's size and risk classification.
- PCI Level 1 Data Vault: Ensures that all transactions comply with top-tier security standards.
Pricing and Transaction Fees
DigiPay provides competitive pricing options based on the business's risk level. While exact rates are determined during onboarding, merchants can expect the following:
- Customized Fees: Tailored pricing for high-risk businesses like CBD to ensure affordability.
- Chargeback Alerts and Fraud Protection Tools: Included as part of their services to reduce additional costs from disputes.
- Interchange Optimization: Designed to minimize processing fees by optimizing transactions.
Requirements and Restrictions for CBD Businesses
To support compliance and avoid disruptions, DigiPay requires merchants to meet specific conditions:
- Regulatory Compliance: Proof of adherence to federal, state, and local CBD laws.
- Business Information: Submission of licenses, certifications, and product details to validate legality and compliance with THC limits.
- Clear Operational Policies: Merchants must display transparent terms, including shipping, refund, and privacy policies on their Shopify stores.
- Underwriting Process: DigiPay conducts in-house underwriting to assess the merchant’s risk level and determine eligibility.
Bankful
Bankful is a versatile payment processor specifically designed for high-risk industries, including CBD businesses. It offers seamless integration with Shopify, ensuring a smooth and secure payment experience for merchants. Bankful caters to various business sizes, from startups to enterprise-level operations, making it a scalable solution for growing CBD brands.
Key features
- Multi-Currency Support: Bankful handles transactions across multiple currencies, ensuring global reach.
- Fraud Prevention Tools: Advanced fraud shield mechanisms protect businesses from chargebacks and fraudulent activities.
- Subscription Billing: Perfect for merchants offering recurring CBD products like supplements or oils.
- Crypto Processing: Accept cryptocurrency payments for greater flexibility.
- QuickBooks Integration: Streamline accounting processes with built-in compatibility.
Bankful’s robust infrastructure ensures 99.99% uptime, which is critical for high-volume operations.
Pricing and Transaction Fees
Bankful offers several flexible pricing plans:
- Standard Plan: $0 monthly fee (with $50 min. processing), $0.10 per transaction, 0.60% credit card volume fee.
- Startup Plan: $15 monthly fee, $0.10 per transaction, 1.50% crypto volume fee, includes subscription billing, fraud shield, and eCheck processing.
- Success Plan (Most Popular): $20 monthly fee, 0.60% credit card volume fee, 1.50% crypto volume fee, chargeback alerts included.
- Bankful Plus (Premium): $95 monthly fee, $0.08 per transaction, 0.55% credit card & BNPL volume fee, 1.00% crypto volume fee, lower rates for checks/SMS, tailored fraud tools, $45 per chargeback alert.
Requirements and Restrictions for CBD Businesses
Bankful supports CBD merchants but maintains strict compliance guidelines to mitigate risk:
- Documentation Requirements:
- Valid CBD licenses and certifications.
- Product compliance documentation (e.g., proof of THC levels below legal thresholds).
- Regulatory Compliance:
- Merchants must adhere to local, state, and federal laws governing CBD sales.
- Websites must include clear refund, shipping, and product labeling policies.
- Underwriting Process:
- Bankful’s underwriting team evaluates businesses based on transaction volume, compliance, and risk level.
- Approval times vary depending on the complexity of the application.
PaymentCloud
PaymentCloud is a leading payment processor that specializes in catering to high-risk industries like CBD. With seamless Shopify integration, PaymentCloud enables CBD merchants to process payments securely and efficiently while ensuring compliance with industry regulations.
Key features:
- Fraud Prevention & Chargeback Management: Advanced tools to detect fraudulent transactions and reduce chargeback rates.
- ACH and eCheck Processing: Flexible options for customers who prefer direct deposit payments.
- Secure API Integrations: Effortlessly connects with platforms like Shopify, USAePay, and Authorize.net.
- Custom Payment Solutions: Tailored services for businesses of varying sizes and risk levels, including high-volume CBD merchants.
- Dedicated Support: A hands-on team provides white-glove support to ensure smooth account setup and ongoing assistance.
Pricing and Transaction Fees
PaymentCloud offers competitive pricing with no hidden fees, catering to businesses of all sizes. While specific rates are customized based on the merchant’s business profile, here’s a general breakdown:
- Monthly Fee: Ranges from $0 to $50.
- Setup Fees: None.
- Transaction Fees: Typically starts at 0.60% for credit card transactions and varies depending on the risk level.
- ACH and eCheck Fees: Flexible options for businesses that prefer direct payments.
PaymentCloud’s pricing model is transparent, ensuring merchants can budget confidently while scaling their business.
Requirements and Restrictions for CBD Businesses
PaymentCloud ensures compliance with CBD regulations while streamlining the onboarding process. Requirements include:
- Legal Documentation: Proof of compliance with federal, state, and local laws governing CBD sales.
- Product Information: Evidence that all products meet THC limits (e.g., less than 0.3% THC for U.S.-based merchants).
- Transparent Policies: Clear refund, shipping, and privacy policies displayed on the merchant’s Shopify website.
- Business Profile Assessment: Merchants must undergo an underwriting process to determine their risk level and eligibility.
Authorize.net
Authorize.net is a payment gateway provider offering secure and versatile payment solutions. It supports multiple payment methods and provides features tailored to meet diverse business needs, including those of high-risk industries like CBD. Key services include:
- Payment Options: Accept credit cards, PayPal, Apple Pay, and eChecks both online and in person.
- Fraud Detection: The Advanced Fraud Detection Suite (AFDS) helps prevent suspicious and fraudulent transactions.
- Recurring Billing: Simplifies recurring payment setups for subscriptions and memberships.
- Customer Information Manager (CIM): Allows returning customers to save payment details for faster checkouts.
- Virtual Terminal: Securely processes manual orders via a web browser.
- Simple Checkout: Add quick "Buy Now" or "Donate" buttons for straightforward payment acceptance.
Pricing and Transaction Fees
Authorize.net offers flexible pricing plans suitable for businesses of all sizes.
- Gateway-Only Plan: $25/month + transaction fees for businesses with existing merchant accounts.
- All-In-One Plan: $25/month + 2.9% + $0.30 per transaction, ideal for those needing both a gateway and merchant account.
- Custom Pricing: For businesses processing over $500,000 annually.
Requirements and Restrictions for CBD Businesses
Authorize.net accommodates CBD businesses by adhering to specific requirements:
- Regulatory Compliance: Merchants must provide documentation showing compliance with CBD industry regulations, including THC limits.
- Product Information: Detailed descriptions and transparent ingredient lists.
- Operational Policies: Clear return, shipping, and privacy policies to meet compliance standards.
- Underwriting Process: Merchants undergo evaluation to ensure risk management protocols are met.
PayKings
PayKings is a payment gateway provider tailored to high-risk industries, offering secure and flexible payment solutions. Their services are designed to address the challenges of processing payments in specialized industries such as CBD, adult content, firearms, and more. Key services include:
- High-Risk Payment Gateway: Secure payment gateway with integrated fraud protection and real-time transaction monitoring.
- Chargeback Management: Tools for chargeback prevention and automated dispute resolution.
- Integration Support: Easy integration with major platforms like Shopify, WooCommerce, and custom APIs.
- Industry-Specific Solutions: Tailored solutions for industries like CBD, adult content, firearms, and more.
Pricing and Transaction Fees
PayKings offers custom pricing based on the needs and size of your business. Businesses can contact PayKings for detailed pricing information and a personalized quote.
Requirements and Restrictions for High-Risk Businesses
PayKings accommodates high-risk businesses with a focus on compliance and safety through the following features:
- Regulatory Compliance: Merchants must comply with industry regulations, such as those for CBD, adult content, firearms, and other high-risk sectors.
- Risk Management: PayKings conducts thorough risk assessments to ensure that businesses can manage the unique challenges of high-risk industries.
- Operational Support: Clear policies on returns, shipping, and privacy are required to ensure that businesses meet compliance standards.
NMI Payment Solutions (USAePay)
NMI is a leading embedded payments platform that provides comprehensive, scalable payment solutions for businesses. Its offerings are designed to enable organizations to integrate, manage, and monetize payment capabilities seamlessly, serving both large-scale merchants and smaller businesses across various industries. Key services include:
- Modular Payments Platform: Flexibly integrate and scale embedded payment solutions.
- Merchant Relationship Management: Manage the full lifecycle of merchant relationships, including underwriting and forecasting.
- Payment Gateway: A white-label payment gateway solution that facilitates secure and reliable payments.
- Omnichannel Payments: Supports a wide range of payment methods, including in-person, online, and mobile transactions.
- Fraud Prevention: Includes a robust fraud protection suite to secure transactions.
Pricing and Transaction Fees
NMI offers tailored solutions to accommodate various business needs, with flexible pricing plans:
- Standard Plan: $0 monthly fee, with a $50 minimum monthly processing requirement. Transaction fee: $0.10 per transaction. Credit Card Volume Fee: 0.60%.
- Startup Plan: $15 monthly fee, transaction fee of $0.10, Crypto Volume Fee: 1.50%. Additional features include subscription billing and fraud protection.
- Success Plan (Most Popular): $20 monthly fee. Includes Credit Card and Crypto Volume Fees of 0.60% and 1.50%, respectively, and chargeback alerts.
- Bankful Plus (Premium Plan): $95 monthly fee, with a transaction fee of $0.08 and Credit Card & BNPL Volume Fee: 0.55%. Includes enhanced fraud management tools and chargeback alerts.
Requirements and Restrictions for CBD Businesses
NMI supports CBD businesses, ensuring compliance with industry standards:
- Regulatory Compliance: CBD businesses must comply with THC limits and provide necessary documentation.
- Transparent Product Information: Detailed product descriptions and ingredient lists are required.
- Operational Policies: Clear return, shipping, and privacy policies must be in place.
Additional Payment Options for Shopify CBD Sellers
In addition to third-party payment processors, merchants can explore alternative payment methods to cater to a wider customer base:
- Cash on Delivery (COD): Suitable for local deliveries and avoids banking restrictions.
- Bank Transfers: A secure option for larger transactions, though processing times may be slower.
- Cryptocurrency Payments: Offers fast, secure, and anonymous transactions, appealing to tech-savvy customers.
How to Set Up a CBD Payment Processor on Shopify
Setting up a CBD payment processor for your Shopify store is the same as setting up other third-party payment gateways. Here’s how:
- Log in to your Shopify Admin.
- Navigate to Settings > Payments
- In the Supported payment methods section, click Add payment method.
- Search for and select alternative payment methods from the search results.
- Click Install
- Enter your account credentials for the provider you chose.
- Click Activate.
Bottom Line
While many traditional gateways shy away from CBD businesses, the 7 CBD Shopify payment processors listed in this article provide reliable and compliant solutions. With the right setup, you can successfully navigate this high-potential niche and grow your eCommerce business.
FAQs
Can I use Shopify Payments for CBD products?
No, Shopify Payments does not support CBD transactions. You’ll need a third-party processor.
What’s the best CBD payment processor for Shopify?
It depends on your business needs, but DigiPay and PayKings are highly recommended for their reliability and features.
Are CBD payment processors more expensive?
Yes, due to the high-risk nature of the industry, CBD merchants typically face higher fees.
Is it legal to sell CBD on Shopify?
Yes, as long as you comply with Shopify’s requirements and local laws governing CBD sales.
What should I look for in a CBD payment processor?
Look for processors that explicitly state their support for CBD businesses, offer competitive rates and transparent pricing, and have a good track record of security and reliability.
Can I accept international payments for CBD products?
7 CBD payment processors above support international transactions. However, it's crucial to ensure you comply with the regulations of both your country and the customer's country.