Stripe CBD Merchant Account: Challenges and Solutions
The CBD industry is experiencing massive growth, but companies that sell CBD products online often face significant challenges when it comes to payment processing. Many turn to Stripe CBD for solutions, only to find that the platform classifies their business as high-risk, limiting their ability to process payments. For CBD merchants, this can be a major roadblock.
Can I Sell CBD On Stripe?
To start, Stripe CBD payment processing is categorized as a restricted business. The company does not allow certain types of industries to process due to various concerns. These exact issues are often regulatory, legal, or brand conflicts. Moreover, restricted business categories exist with all financial service providers, not just Stripe.
If you're selling CBD on Stripe, you may have breached the Terms and Conditions you agreed to when you opened your account. In this case, it's imperative you start looking for what's called a high-risk merchant account for your CBD business.
These high-risk merchant accounts require special attention when it comes to their payment processing. In this case, you'll want to stop using Stripe for CBD and apply for a new account.
Why Is CBD Considered High Risk for Payment Processing?
CBD businesses are classified as high-risk for several reasons:cbd credit card processing
- Regulatory concerns: Despite the legality of CBD in many regions, varying state and federal laws create a complex environment.
- Legal conflicts: Financial institutions are wary of processing payments for businesses in the CBD industry because of potential risks.
- Brand conflicts: Companies like Stripe often avoid industries that could harm their brand reputation, including adult services and CBD businesses.
As a result, most payment processors, including Square, Shopify and Stripe, hesitate to do CBD credit card processing with businesses in the CBD industry.
What Happens If You Use Stripe to Sell CBD?
If you're currently using Stripe to sell CBD products, your account could be flagged or even terminated. Stripe reserves the right to discontinue services to businesses engaged in restricted or high-risk activities. To prevent payment interruptions, you'll need a high-risk payment processor that understands the unique challenges of the CBD industry.
Stripe: Restricted Businesses
So, is it possible to accept credit cards for CBD as a merchant on Stripe?
To start, it's important to know the particular categories of businesses and business practices that are restricted by Stripe. According to their website, the following lists the general types of businesses without getting into specific products or services.
Unfair, Predatory, or Deceptive Practices
- No-Value-Added Services
- Get Rich Quick Schemes
- Mug Shot Publication or Pay-To-Remove Sites
IP Infringement, Regulated, or Illegal Products and Services
- Gambling
- Adult Content and Services
- Regulated or Illegal Products or Services
- Counterfeit of Unauthorized Goods
- Intellectual Property or Proprietary Rights Infringement
Products or Services That Are Restricted By Financial Partners
- High-Risk Businesses
- Video Game or Virtual World Credits
- Social Media Activity
- Drug Paraphernalia
- Aggregation
- Pseudo Pharmaceuticals
- Substances designed to mimic illegal drugs
- Multi-Level Marketing
Financial and Professional Services
- Money and Legal Services
- Investment and Credit Services
- Virtual Currency or Stored Value
Stripe CBD Merchant Account
As you can see, a Stripe CBD merchant account is not specifically on this list. However, acquiring banks and other financial institutions classify CBD products as high-risk. Keep in mind that Stripe's instant approval doesn't mean your current payment processing account will last. At PayKings we provide custom accounts for your business. Whether you've built your own site or are selling CBD on Shopify, we have solutions so you can take online credit card payments.
Say you choose Stripe for your CBD merchant account payment processing. It's only a matter of time before you can get your merchant account dropped. This can happen fast and could be avoided.
Stripe's CBD policies are different than those of a high-risk payment processor. Therefore, specific high-risk solutions eliminate the chance of having payments interrupted.
Finding a High-Risk Merchant Account for CBD Businesses
A high-risk merchant account offers tailored payment solutions for businesses selling high-risk products or services like CBD. These accounts have specialized payment gateways that are designed to handle the intricacies of CBD payment processing.
For instance, PayKings provides CBD merchant account solutions specifically for CBD merchants, allowing them to process credit card payments without the risk of their account being shut down. Unlike Stripe, which may drop your account without warning, high-risk payment processors are more stable for industries like CBD and adult content.
High-Risk Payment Processors: The Right Choice for CBD Merchants
Using a high-risk payment processor comes with several advantages for CBD businesses:
- Secure CBD payment processing: These processors specialize in handling businesses classified as high-risk, ensuring you can process payments smoothly.
- Fewer restrictions: Unlike Stripe, high-risk processors don’t impose stringent restrictions on CBD merchants.
- Long-term reliability: Stripe may drop your account at any time, but a high-risk merchant account provides more security for the long haul.
Selling CBD Products Online: Alternatives to Stripe
If you’re looking for an alternative to Stripe CBD payment gateways, there are several other payment processors that are more suited to handling high-risk businesses. PayKings is one such provider, offering solutions designed specifically for businesses in the CBD industry.
Here are a few reasons to choose PayKings:
- Customized solutions: PayKings works with businesses to provide payment gateways and merchant accounts tailored to their specific needs.
- High-risk expertise: PayKings has partnerships with banks that are more open to working with high-risk industries like CBD.
Why Stripe CBD Isn't the Best Option for CBD Merchants
Although Stripe offers many features, its policies regarding high-risk merchant accounts make it a poor choice for CBD merchants. Here’s why:
- Account suspension risks: Stripe reserves the right to close your account without notice, which can severely impact your cash flow.
- Lack of support for high-risk industries: Stripe’s platform is not designed for industries like CBD or adult services, leaving merchants without the support they need.
Choose a Reliable Payment Processor for CBD Businesses
If you're a CBD business owner, navigating the complexities of payment processing is crucial for your success. While Stripe CBD may seem like a quick solution, the risks far outweigh the benefits. Instead, consider a high-risk payment processor like PayKings, which specializes in providing reliable, long-term solutions for CBD merchants.
Don’t risk your business by relying on a platform that doesn’t support your needs. Secure your CBD payment processing today and avoid future complications by choosing the right merchant account provider.
Key Takeaways:
- Stripe CBD categorizes CBD businesses as restricted and high-risk.
- High-risk merchant accounts provide a better alternative for processing CBD transactions.
- PayKings offers tailored solutions for businesses selling high-risk products like CBD.