Payment processing approval shouldn’t feel impossible.
Especially if you sell products in industries other businesses serve everyday.
But if you’re a CBD merchant, payment processing approval has felt anything but easy.
Many banks have historically avoided working with hemp-derived product merchants. And mainstream payment processors like PayPal and Stripe have blocked CBD businesses for years. Even after hemp was officially legalized via The 2018 Farm Bill…
The payments industry is still mishandling CBD businesses like their product lines are a problem.
Luckily… there’s some hope.
Specialised fintech companies are popping up to fill the void of payment processing services underserved business markets need.
In this article you’re going to learn:
- Why CBD Businesses Face Merchant Approval Issues
- How Fintech Providers Are Bridging The CBD Payment Gap
- What To Look For In a High-Risk Payment Processor
- Why CBD Merchant Approval Will Only Get Easier
Why CBD Businesses Face Merchant Approval Issues
To put it simply, the CBD industry is booming.
The global cannabidiol (CBD) market size was valued at approximately $10.68 billion USD in 2025 and is expected to reach $30.96 billion by 2033.
That’s huge influx of growth.
But here’s the issue…
This expected growth means banks and credit card processors have tons of potential customers just waiting to be approved. However, due to strict regulation and outright fear, most brands have categorized hemp-derived businesses as “high-risk”.
That has led to a number of setbacks, including:
- High risk classifications mean PayPal, Stripe, and Shopify Payments do not process CBD payments.
- Banks can randomly close down CBD merchant accounts.
- Average processing rates fall between 4% – 10% per transaction.
Yet another report shows just how limited CBD processing truly is. Research done by Payfirmly found almost 62% of CBD businesses faced payment related issues like incomplete documentation, or inconsistent compliance led to funds being frozen or accounts shut down entirely.
CBD businesses are essentially expected to navigate an industry that’s already told them “no” from nearly every direction.
Providers like 2accept specialise in CBD merchant account payments and partner with banks that fully understand and support CBD commerce to help business owners navigate that complex world.
How Fintech Providers Are Bridging The CBD Payment Gap
You may be wondering…
If banks and major credit card processing brands won’t support CBD businesses, how do they operate at all?
Simple.
Fintech companies.
Fintech brands recognise that underserved business markets like CBD, nutraceuticals, and vape sales require unique payment processing needs. So they’ve built their companies from the ground up to serve those needs.
Fintech solutions don’t simply accept all businesses that banks run away from. Instead, they use cutting edge technology and bank partnerships that get real CBD businesses approved.
So what makes fintech so different?
Specialized Underwriting Practices
While most banks have a one-tier underwriting process that automatically declines businesses they don’t want to touch, fintech brands don’t follow that outdated structure.
Fintech brands use advanced risk analysis software and AI assisted fraud prevention to evaluate real businesses on their individual merits. That allows for quicker approval times and more account stability.
Diversified Banking Relationships
Did you know that most fintech providers have more than one acquiring bank?
That’s right. Instead of putting all of their eggs in one basket, many fintech companies spread out transaction processing to reduce the likelihood of a bank pulling the rug from under you.
That’s a level of care traditional payment processors don’t offer.
Strong Compliance Resources
Lastly, fintech providers have your back when it comes to compliance.
Staying completely compliant with state and federal CBD regulations can be difficult. That’s why many fintech providers implement systems to monitor changes within state guidelines, and screen products for inconsistencies within your documentation.
That added layer of protection ensures your account runs smoothly and doesn’t face unexpected suspensions.
What To Look For In a High-Risk Payment Processor
Just because a payment processor works with high-risk businesses doesn’t mean they’re a good fit for your CBD store.
Here are some things to watch out for when vetting potential payment processors:
- Look for providers with experience working with CBD and hemp-derived businesses. If they don’t have a good track record with that industry, move on to someone that does.
- Make sure their fee structures are transparent. Transaction fees, monthly fees, and rolling reserves should be communicated up front. Some processors will try to hide fees in the fine print.
- Take a look to see if they offer chargeback protection. Because CBD businesses are prone to higher chargebacks, look for providers that offer intelligent fraud filters and chargeback alerts.
- Ensure that their processors can integrate seamlessly with your ecommerce platform. Whether you use Shopify, WooCommerce, or BigCommerce. Make sure the payment processor doesn’t give you any installation troubles.
And most importantly…
Account stability. As mentioned before, working with a provider who has built bank relationships around accepting CBD businesses is key. That is what will allow your business to run smoothly for years to come.
The Future Of CBD Business Merchant Approval
The fintech industry is exploding.
Current projections estimate the global fintech market value to reach $1,537.93 billion USD by 2034. Growing from $394.99 billion in 2025.
Needless to say, a lot of that growth will be fueled by industries desperate for payment processing help.
What does that mean for hemp-derived business owners?
If you play your cards right, it means a ton of options.
Fintech has allowed CBD business owners to receive merchant approval within days instead of months. And as more companies jump on the fintech bandwagon, that trend is expected to continue getting even easier.
A few things you can do right now to future proof your business:
- Double check your business is compliant with current regulations. This includes labeling, website copy, and COAs.
- Shop around and pick the right provider. Don’t settle on the first fintech brand you come across.
- Keep an eye on your chargebacks. Chargebacks can help or hurt your ability to negotiate lower rates with your processor. Keep that number as low as possible.
The Bottom Line
CBD payment processing shouldn’t be this hard.
While banks and major payment processors have left CBD business owners in the dust for far too long, there is a light at the end of the tunnel.
Fintech brands are working tirelessly to offer realistic solutions for CBD businesses who’ve been denied service year after year.
And they’re only going to get better.
If you’re serious about your business surviving more than a couple years, taking steps to secure yourself now will pay dividends in the long run.
