CBD Credit Card Processing Rates, Fees & Reserves

The card networks don't charge CBD sellers a special rate. Interchange, the base fee that goes to the bank that issued your customer's card, is the same whichever processor you use. The difference is in what the bank behind your CBD merchant account charges on top, and in the reserve it may hold. Banks price CBD higher for three reasons:

• Legal risk that moves. CBD is legal federally only when it meets the definition of hemp at the time of sale, and that definition is set to change. Under current law, most of it takes effect December 11, 2026 (pending; details in the 2026 hemp law change). State rules differ too. A bank that boards CBD has to keep checking what you sell.
• Mostly online sales. Many CBD brands sell mainly online. Card-not-present sales (online, phone or mail order) carry higher interchange than in-person sales and more fraud and dispute risk.
• Disputes. Subscriptions, free trials and "it didn't work" complaints lead to chargebacks. The bank covers any refund you can't pay, so it prices in that risk.

Here's what CBD processors publish on their own websites, checked September 27, 2026. These are industry quotes, not START's prices.

Most are single percentages. A flat rate hides how much is the card networks' cost and how much is markup, so two quotes are hard to compare.

How START prices: START's pricing model is interchange-plus pricing, with no termination, annual or address verification fees. Your markup depends on your business and the bank that approves it, so we quote it after we see what you sell and how you sell it.

Most CBD quotes use one of two models:

• Interchange-plus: you pay the card networks' actual cost plus a fixed markup you can see on every statement (a percentage, a few cents per sale, or both). When interchange is lower, such as on many debit cards, you pay less.
• Tiered or blended: the processor sorts sales into "qualified", "mid-qualified" and "non-qualified" buckets, or charges one flat rate. An "as low as" rate usually applies only to the cheapest cards. Online orders and rewards cards often land in the expensive tier, and for an online CBD store that can be most of your sales.

Whatever the model, one number lets you compare any two offers:

Total fees ÷ total card sales = effective rate

Say an online CBD shop has $25,000 in card sales in a month and pays $1,050 in fees. Its effective rate is 4.2%. Count every fee line, including gateway, PCI, chargeback and "risk" fees, but not reserve holds. That money comes back to you.

Ask each processor for its estimated effective rate at your real sales mix (order size, online vs. in person, subscriptions), then check it against your first three statements. For a longer walk-through, see how to calculate your effective rate from a statement.

A rolling reserve holds back a percentage of each day's card sales for a set period, then releases it. It's still your money. The bank holds it to cover refunds and chargebacks you can't pay. CBD processors' own pages commonly put CBD reserves at 5% to 20% of sales, held 90 to 180 days (checked September 2026). At 10% held for 180 days on $30,000 a month, about $18,000 is tied up once the reserve builds.

For CBD, underwriters (the bank staff who approve accounts) look at your product list and lab reports, your online and subscription mix, your processing history, and whether your website makes health claims, which also gets CBD applications declined (see CBD merchant account requirements).

Getting a reserve reduced. Ask for a written review date, often at six or twelve months, and what earns a reduction. Your best argument is months of clean processing: low disputes, few refunds and no surprise product changes. Also ask for a cap, a dollar ceiling that stops the reserve growing with your sales, and how long funds are held after you close.

Whether a START account carries a reserve, and on what terms, depends on your business and the bank that approves it. For how reserves build and release month by month, and what to negotiate, see how rolling reserves work.

The rate gets the attention, but these fees can cost more over a year. Ask about each one and get the answer in writing.

START's pricing model has no termination fees, no annual fees and no address verification fees.

There are three ways to pass card costs to customers, and the card networks treat them very differently. Selling CBD doesn't change these rules.

Surcharge rules in effect as of September 2026:

• Credit cards only. Never debit or prepaid cards, even when run as credit. Your gateway or terminal has to detect the card type.
• Capped. Visa: 3% or your cost to accept the card, whichever is lower. Mastercard: 4% or your cost, whichever is lower. American Express and Discover set their own rules.
• 30 days' notice. Tell your processor in writing at least 30 days before you start.
• Disclosed three times. Visa requires notice where the customer enters (for an online CBD store, before checkout), at the point of sale, and as its own line on every receipt.

State bans and limits. Connecticut, Maine, Massachusetts and Puerto Rico ban surcharges. Colorado and Oklahoma cap them at 2% or your cost, New York requires the full card price to be posted, and California requires advertised prices to include mandatory fees (SB 478). These laws change often. Online CBD stores sell into many states, so check the rules where your customers are, not just where you are.

The Visa and Mastercard settlement isn't final. A proposed settlement between Visa, Mastercard and U.S. merchants got preliminary court approval on June 9, 2026. Merchants and trade groups filed objections in September 2026, and as of September 27, 2026 the court hadn't granted final approval. If it does, merchants could surcharge more freely and decline premium cards. None of that is in effect now.

A cash discount done wrong is a surcharge. If a "service fee" appears when a card comes out, it's a surcharge, whatever you call it. Our gun store surcharge and cash discount guide (written for gun stores, same rules) covers the full state list and settlement terms.

A surcharge moves the cost to your customer. These steps make the cost smaller:

1. Ask about eCheck (ACH). Bank payments usually cost less than cards and suit repeat and wholesale orders. Ask whether your account can offer eCheck payments alongside cards.
2. Take in-person sales in person. Card-present sales carry lower interchange than keyed or online sales. If you have a shop or sell at events, ask whether your account supports card-present payments.
3. Cut disputes. Fewer chargebacks mean fewer chargeback fees, less risk to your account and a better case for lowering your reserve. Clear subscription terms and a billing name customers recognize do most of the work. See how to prevent CBD chargebacks, and the chargeback ratio limits Visa and Mastercard enforce.
4. Keep your product list current. Tell your processor before you add products. An undisclosed product is a common reason CBD accounts get closed (see what to do after a CBD account shutdown), and a closed account costs far more than any rate.

Not sure your products fit? Check what we accept, or send us your product list and we'll tell you where you stand before you apply.