What is a CBD merchant account?

It's a card processing account (sometimes called a hemp merchant account) that a bank has approved knowing you sell CBD. Your products, certificates of analysis (COAs, the lab reports for each batch) and website are reviewed before you process, rather than a payment app finding out what you sell after the fact. General-purpose payment apps work differently: in 2026 Square told sellers CBD is no longer permitted, Stripe needs approval first, and Shopify Payments doesn't support CBD.

Banks give CBD a high-risk classification because the law is changing, most sales are online, and disputes run higher. That shapes pricing and approval, which the guides below explain.

CBD merchant services for brands, shops and wholesalers

These guides, and our CBD payment processing team, are for businesses that sell hemp-derived CBD:

Online CBD brands
CBD retail shops
Wholesalers & distributors
CBD oil & tincture makers
Topical & skincare brands
Pet CBD brands

Every business is reviewed on its own products and sales channels. Tell us what you sell and how, and we'll tell you where you stand.

What we accept, and what federal law rules out

We work with sellers of hemp-derived CBD that meets the federal definition of hemp at the time of sale. That definition is changing in late 2026, so what qualifies depends on the date and on each product's COA.

Hemp-derived CBD

CBD products that meet the federal hemp definition when you sell them, backed by a current COA for each batch. Today that means no more than 0.3% delta-9 THC by dry weight. From December 11, 2026 (pending), it means total THC, including THCA, and no more than 0.4 mg total THC per container for finished products.

Outside the federal definition

Marijuana and state-licensed dispensary products. From November 12, 2026 (pending), cannabinoids the hemp plant can't produce naturally, such as THC-O. From December 11, 2026 (pending), cannabinoids made outside the plant, such as delta-8 converted from CBD, and products over the new total-THC limits, which is expected to include most hemp flower and hemp-THC gummies and drinks.

Edibles, drinks and some product types raise extra questions from banks and states, so list everything you sell. Send us your product list and COAs and we'll tell you which banking partner fits it before you apply. Selling nicotine vapes instead? See nicotine vape merchant accounts.

What's changing for CBD payments in 2026

Two changes are hitting CBD sellers this fall. Square is leaving CBD, and Congress has rewritten the federal definition of hemp. From November 12, cannabinoids the plant can't produce naturally are out. From December 11, converted cannabinoids such as delta-8 made from CBD are out too, and hemp is measured by total THC, with a 0.4 mg per container cap on finished products. Re-test, re-label and update your COAs now.

→October 15, 2026: Square's deadline to remove CBD and hemp items from Square catalogs, online and in person (notice dated August 7, 2026). Account closures are reported for November 5.
→November 12, 2026 (pending): cannabinoids the hemp plant can't produce naturally, such as THC-O, fall outside the hemp definition.
→December 11, 2026 (pending): everything else takes effect: the total-THC test (THCA counts), the 0.4 mg per container cap, and the exclusion of cannabinoids made outside the plant, such as delta-8 converted from CBD. Bills to delay or repeal them are in committee.

Full guide: the 2026 hemp law change

As of September 27, 2026. General payments guidance, not legal advice.

Before you apply

Getting approved for CBD

Underwriters check who you are, what you sell and how you sell it. Have your business documents, a current third-party COA for every product and a website free of health claims ready before you apply. List every product: one out-of-scope item, such as delta-8, can sink the whole application.

→COAs: from an independent lab, matched to the batch you sell. From December 11, 2026 (pending), they should show total THC, including THCA, and mg per container.
→Your website: claims that CBD treats or cures anything are the most common fixable reason for a decline.
→Your history: disclose past shutdowns, including a Square closure, with the closure notice.

Full guide: CBD merchant account requirements

Rates, fees & reserves

CBD processing costs more than typical retail because banks price in changing hemp rules, mostly online sales and subscription disputes. Ask for interchange-plus pricing, compare offers by effective rate, and get any reserve terms in writing before you sign.

→What the market quotes: CBD processors' published quotes in September 2026 ran about 3% to 8% per sale, with reserves commonly 5% to 20% held 90 to 180 days. These are industry ranges, not our prices.
→START's pricing model: interchange-plus, with no termination, annual or address verification fees.
→Surcharges: credit cards only, capped at 3% for Visa and 4% for Mastercard, and banned in some states.

Full guide: CBD rates, fees & reserves

Payment compliance

Processors check your products, your claims and where you ship, not just your paperwork. The FDA, the states and the card networks each set rules that decide whether a CBD sale can be processed.

→FDA: CBD is excluded from the dietary supplement definition and can't be added to food sold across state lines. No disease or treatment claims.
→States: some set age limits, licensing or lower THC limits. Check every state you ship to.
→Card networks: the sale has to be legal where you and your buyer are. There's no single "CBD MCC"; your bank assigns the category code.

Full guide: CBD payment compliance

Running your payments

Selling CBD online

Shopify allows hemp and CBD stores, but Shopify Payments doesn't support CBD, so you need a third-party provider. Amazon doesn't allow CBD listings at all. The setup that works on Shopify, WooCommerce or BigCommerce is a CBD-approved merchant account plus a payment gateway your cart supports.

→The gateway: connects your checkout to your merchant account. The Authorize.Net gateway works with more than 1,000 carts.
→Build the checkout right: COAs linked from product pages, no health claims, and clear refund and subscription terms.

Full guide: accepting cards on an online CBD store

In store and by bank transfer: if you run a CBD shop or sell wholesale, tell us how you take payments today. Card-present processing and eCheck (ACH) payments depend on the bank that approves your account, so we'll confirm what's available for your products before you apply.

When something goes wrong

Shut down by Square or funds frozen

Square has told sellers that CBD and hemp-derived products won't be permitted, online or in person. Stripe restricts CBD rather than banning it, Shopify Payments doesn't support it, and PayPal doesn't list it as allowed. Export your data, get your payout and hold dates in writing, and apply for a CBD-approved account before your cutoff.

→Square: remove CBD from your catalog by October 15, 2026 (notice dated August 7, 2026).
→Stripe: CBD with negligible THC needs approval; CBD edibles are prohibited (policy updated September 22, 2026).
→Held funds: get the amount and release date in writing.

Full guide: what to do after a CBD account shutdown

Chargebacks and disputes

CBD disputes cluster around subscriptions, free trials and "it didn't work" complaints. Clear subscription consent, reminders before renewals and easy online cancellation prevent most of them. Dated records win the rest: the product page, the batch COA and delivery proof.

→Visa: since April 1, 2026, the US "excessive" level is 1.5% of fraud reports plus disputes to online and phone sales, once there are at least 1,500 a month.
→Mastercard: its excessive chargeback program starts at 1.5% and 100 chargebacks a month.
→Free trials: Visa requires a reminder at least 7 days before a trial turns into a paid charge.

Full guide: preventing and winning CBD chargebacks

Why CBD sellers talk to START

Straight answers before you apply: Send us your product list and we'll tell you which banking partner fits it, and what your file needs, before you fill out an application.
Current, dated guidance: Square's exit and the 2026 hemp law change, explained with dates and sources, and updated when they move.
Clear pricing model: START prices on interchange-plus, with no termination, annual or address verification fees.
Authorize.Net specialists: 20+ years in payments and more than 60,000 Authorize.Net accounts set up.
Real people: A Salt Lake City team, Monday to Friday, 9 to 5 Mountain Time, at 888-573-7587.
Honest limits: If a product falls outside the federal hemp definition, we'll say so up front rather than let it close your account later.

CBD payment processing FAQ

Can I use Square or Stripe for CBD?

Not Square. In August 2026 Square told sellers CBD and hemp-derived products will no longer be permitted, online or in person, and set October 15, 2026 to remove them from catalogs. Stripe lists CBD with negligible THC as restricted, which means it needs Stripe's approval, and prohibits CBD edibles and CBD over local THC limits. What Square, Stripe and PayPal allow →

Is CBD still legal after December 11, 2026?

Hemp-derived CBD that meets the new definition stays legal federally. From December 11, 2026 (pending), hemp is measured by total THC, including THCA, and finished products can contain no more than 0.4 mg total THC per container. CBD isolate and broad-spectrum products are expected to qualify; some full-spectrum products may not. The 2026 hemp law change explained →

What documents do I need for a CBD merchant account?

Your formation documents and EIN, owner ID, bank statements, any processing statements, a full product list, and a current third-party COA for each product or batch. Your website should have no health claims and clear refund, shipping and privacy policies. CBD merchant account requirements →

How much does CBD payment processing cost?

More than a standard retail account. Published quotes from CBD processors in September 2026 ran about 3% to 8% per sale, often with a reserve. Ask for interchange-plus pricing, your effective rate and any reserve terms in writing before you sign. CBD rates, fees & reserves →

Can I sell CBD on Shopify?

Yes, but not with Shopify Payments. Shopify allows hemp and CBD stores whose products meet federal and state THC limits, and says Shopify Payments doesn't support CBD, so you need a third-party payment provider. Accepting cards on an online CBD store →

Do you process delta-8, THCA or hemp flower?

We work with hemp-derived CBD that meets the federal definition of hemp at the time of sale. From December 11, 2026 (pending), that definition excludes cannabinoids converted outside the plant, such as delta-8 made from CBD, and products that fail the total-THC test, which is expected to include most hemp flower. Send us your product list and we'll tell you where you stand. What we accept →

Do I need a merchant account if I already have a business bank account?

Yes. Your bank account holds your money; a merchant account is what lets you accept cards and deposits those sales into your bank account. They're separate accounts, often with separate providers, and a bank that opens a checking account for a CBD business hasn't necessarily approved it for card processing.

This page is general payments guidance, not legal advice. Laws and platform policies are as of September 27, 2026 and change often.

CBD Merchant Accounts

What is a CBD merchant account?

CBD merchant services for brands, shops and wholesalers

What we accept, and what federal law rules out

What's changing for CBD payments in 2026

Before you apply

Getting approved for CBD

Rates, fees & reserves

Payment compliance

Running your payments

Selling CBD online

When something goes wrong

Shut down by Square or funds frozen

Chargebacks and disputes

Why CBD sellers talk to START

CBD payment processing FAQ

Go deeper on any topic

How to Get Approved

Rates, Fees & Reserves

Payment Compliance

2026 Hemp Law Change

Selling CBD Online

Shut Down by Square?

Chargebacks & Disputes

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