CBD (Cannabidiol) is a chemical compound found in cannabis plants and is popularly known to help with many health problems. Despite it being helpful to people, in some states, it is illegal. 

Moreover, strict legal restrictions on CBD products led to this business being classified as a high-risk business. Because of that, payment processing has a significant impact on CBD merchants. They can not use low-risk processors like PayPal. So, CBD merchants have no other options apart from using processors that accept high-risk businesses when it comes to payment processing.

With that, does paypal accept cbd sales? What is CBD merchants’ payment processing? Which are the best payment processors to use as a CBD merchant? Let’s dive in to find those and other answers.

What is CBD Merchant Payment Processing?

CBD Merchant payment processing is how businesses complete their transactions using credit and debit cards. 

The processing system accelerates card transactions while the gateways transfer that data to transfer the money to the merchant account from the buyer’s account.

This processing may take seconds to be done, but it goes through several steps. It starts with the purchaser, the merchant, the payment processor, the payment gateway, the credit card company, and the merchant’s business bank.

What to Look for in a Payment Processor

You can’t just pick any payment processor without considering several things. Let’s dive into them.

  • Know the fraud protection services a payment processor offers. Also, choose a reliable and secure service that will alert and reject any risky or suspicious transactions.
  • Go for a payment processor that will enable you to access your funds quickly. 
  • Apart from good service, choose a faithful and honest payment processor. 
  • Go for a payment processor with different services you can offer your customers without restrictions.

Responsibility of a Payment Processor

  1. Once a customer makes a payment, it will verify their billing information. It also authenticates credit card details.
  2. It will certify that the customer has the right funds before validating funds for each payment. 
  3. After approving the payment, the processor will generate an order confirmation number. 
  4. Lastly, it will approve the transaction, and the money will be transferred first to your merchant account and then to the merchant’s bank account.

Best CBD Merchant Payment Processors to Work with Payment Cloud

Payment Cloud is the most popular CBD merchant payment processor. Since 2010, Payment Cloud has served high-risk merchant accounts, including CBD businesses. Setting up an account with a payment cloud is free, and the rate of your account’s approval as a merchant is high. Another advantage of this account is its free credit card point of sale with each retail account.

Moreover, while processing payments, Payment Cloud does not disclose any standardized account or processing fees. Also, paymentCloud has its own conditions for CBD merchants. They only approve accounts that sell CBD products that are applied externally, like lotions and oils.


Low-volume CBD merchants and startups most prefer Square payment processors. It started offering CBD processing services in 2019.

Despite its transaction rates being higher than the company’s low-risk rates, Square is an excellent alternative to traditional high-risk merchants. They have posted all their prices on their websites. Therefore, you will know what it will cost you to use their services beforehand. 

Square has its limitations. Instead of providing you with a full-service merchant account, Square combines your payment account with those of other merchants. Because of this, your account can suffer a higher risk of sudden hold, freeze, or termination.

Easy pay direct

EasyPayDirect has been providing high-risk merchant accounts for over nine years. Despite accepting CBD merchants, it only deals with well-funded merchants with previous operating experience. You’ll find pricing disclosures on their website, and they do not have an early termination fee, even for high-risk businesses. You can also use their EPD gateway.

Those are not the only payment processors. Others include;

SMB Global

National Processing

packings and many others.

Does PayPal Accept CBD sales?

Unfortunately for CBD merchants, PayPal does not accept any CBD payments. They don’t allow high-risk industries to operate on their platform. Paypal only enables low-risk industries to avoid experiencing high chargeback volumes.

With the above information, you now know how payment processors work and what to consider when choosing your payment processor. Although CBD is a high-risk business, it is also a profitable business. You have to follow the right legal procedures and choose a processor to avoid losses when your account is terminated.