CBD Payment Processing

Traditional banks and payment processors reject CBD businesses for several key reasons, despite the industry's federal legality. First, many major card networks and acquiring banks maintain internal policies that predate the 2018 Farm Bill, treating all cannabis-related products as prohibited regardless of THC content. Second, the lack of standardized testing procedures for THC levels creates liability concerns—if a product later tests above 0.3% THC, banks fear regulatory action and potential fraud liability.

Beyond regulatory concerns, processors worry about chargeback rates in the CBD industry, which can run 2-3x higher than traditional e-commerce. Many customers purchase CBD products with high expectations for health benefits, and when results don't match marketing claims, they initiate chargebacks. Additionally, the subscription-based business models common in CBD commerce create complexity around recurring billing disputes, customer retention, and fraud. Traditional processors simply aren't equipped to handle these industry-specific challenges, leading them to blanket-reject CBD applications rather than invest in understanding the space.

At Paysuki, we've built our CBD payment processing solution from the ground up to address the unique challenges of this industry. Our platform includes automated COA (Certificate of Analysis) verification, ensuring that every product sold through our system has up-to-date lab testing confirming THC levels below the federal threshold. We work with multiple acquiring banks that specialize in CBD commerce, providing redundancy and stability that single-bank processors simply can't match.

Our chargeback protection system is specifically tuned for CBD commerce. We've analyzed millions of CBD transactions to identify the patterns that lead to disputes—vague product descriptions, unrealistic health claims, unclear subscription terms, and poor customer service. Our fraud prevention AI flags these issues before they become chargebacks, and when disputes do occur, our team has a winning playbook specifically for CBD merchant disputes. We've helped our CBD clients reduce chargeback rates by an average of 50% within the first 90 days.

Compliance is baked into every aspect of our CBD solution. We automatically enforce age verification at checkout (21+ or 18+, depending on state), integrate with leading CBD-specific shipping and fulfillment platforms, maintain detailed transaction records for regulatory audits, and monitor state-level regulation changes to keep your business compliant. Our platform supports complex business models including wholesale, retail, subscription boxes, and white-label programs—all with the payment processing reliability that CBD businesses desperately need.

We understand that CBD businesses need more than just payment processing—they need a strategic partner. Our account managers have deep experience in the CBD space, helping merchants optimize everything from product pages and subscription flows to email campaigns and retention strategies. We've processed over $500 million for CBD merchants, and that experience translates into better approval rates, lower costs, and the stability required to build a sustainable CBD business.