Skip to content

Can You Sell CBD On Shopify?

June 1, 2023

As the hemp and CBD industry continues to grow, ecommerce platforms like Shopify are seeing surges of CBD startup growth. Beyond unique product lines and creative marketing, new businesses need to understand how to acquire a CBD merchant account if they want their presence known in the Shopify CBD market.

Shopify CBD - PayKings

Firstly, there are a few basic steps to figure out if you can sell CBD on Shopify. In order to hedge legal risk, they recommend you consult with a lawyer so you can understand all of the different regulations in the industry.

Most startups however don’t have the time or financial resources to iron out the specifics on a high level. Moreover, the most important information about the sale and restriction of CBD and hemp-related products is online. We recommend you search for both federal and state regulations for your exact products and explore the standards for shipping, sales, and distribution in your area.

Shopify CBD Policy

Now that you’ve done your research, you’ll need to look into the Shopify CBD policy. If you don’t follow the policy closely Shopify can drop your merchant account. Then you’ll be left with an online business and no way to accepts payments. For the most part, Shopify’s regulations are consistent with the state-level restrictions associated with hemp-derived cannabidiol or CBD sales.

The laws change constantly and new states are allowing certain levels of THC content while others have strict rules that restrict the sale of any hemp-related product. If your products are consumable such as gummies or edibles, then the FDA will be the main authority to refer to when it comes to understanding the regulatory environment.

Shopify CBD Payment Processor

CBD oil solutions for eCommerce websites - PayKings

In order to process credit cards online, you’ll need to find a solution that allows you to operate as a Shopify CBD business. Shopify Payments is a payment processor, but it does not currently allow CBD businesses to use its payment gateway. However, there are many alternatives to this service.

You’ll want to find a third party gateway like PayKings who can provide the high risk account you’ll be needing. CBD is categorized as high risk because of the above mentioned legal stipulations, additionally, banks who support your account don’t want to have the risk of bad brand association when it comes to products in this vertical.

How to apply for a CBD merchant Account

To get a Shopify CBD account, you’ll have to go through three different processes.
  1. Application – Apply to receive a payment processing account. This entails filling out a general form, then adding details to a more thorough merchant application. Here their processing company will collect important information. Share the details regarding your company such as how long you’ve been operating and your chargeback rates. You’ll also want to share which state you’re operating in, and how much sales volume you’re processing per month.
  2. Underwriting – Once you have finished sharing all of the necessary documents and company details, the bank will review your application. At this stage, they may also contact you and request adjustments to your site, or possibly verification of documents such as COAs that show THC below 0.3%.
  3. Approval – Once the bank approves your Shopify CBD account, you’ll be able to start accepting payments. With your payment gateway integration and a portal through the bank, you can see all of your transactions and revenue flow. You’ll also be able to monitor important details like your number of chargebacks and refunds.

In Canada, the restrictions for CBD are a bit different, and the process may not apply. However, there are more opportunities for getting a cannabis merchant account in Canada according to the legal regulations.

Types of CBD You Can Sell:

  • CBD Gummies and Edibles
  • CBD for Dogs and Pets
  • Concentrates
  • Ointments and Topicals
  • Sprays and Atomizers
  • Capsules and Pills
  • CBD for Vaping
  • Creams and Lotions
  • CBD Flowers

Who Is the Best Shopify CBD Payment Processing Company?

Third-party credit card processing companies all have different standards and guidelines for opening a CBD merchant account. Find one that has experience with CBD, and can answer your questions. The application process calls for detailed information. Be sure you find a company with real people who you can talk to.

author avatar
Kyle Hall CEO

June 1, 2023 | Merchants | Kyle Hall