CBD MERCHANTS

What makes CBD a special case?

While CBD is now considered legal in all 50 states, there are still various restrictions and regulations on its use and sale in some jurisdictions. This is due to its source being from both marijuana and hemp cannabis plants.

Marijuana contains higher amounts of the THC chemical responsible for the high sensation and has only been made legal for recreational use in a handful of states. Others have limited its use to purely medical use, while in others it remains largely illegal.

CBD is also regulated by the FDA when sold as a food, supplement, drug or cosmetic and currently remains illegal to transport over state lines in these forms. This makes sales out of state a controversial subject and therefore gives the product a high-risk categorization.

Your CBD Merchant account

Due to the high-risk labeling of CBD by many providers, general merchant accounts with any of the big-name providers are at risk of being flagged and suspended for anything they perceive to break the rules. The shutting down of your main payment source can have disastrous effects on a business and with no alternative way to collect payments, it can be the death of a new enterprise.

Dedicated CBD merchant accounts are designed to deal with the complexities of the CBD industry. Processors like Cannabis Banking Solutions understand the legalities of these products and are ranked superior to these out-of-the-box alternatives. Most importantly, we don't have sudden suspensions of your account for trying to process legitimate payments.

A changing market

The Hemp Farming Act of 2018 legalized the use of cannabis plants with THC levels of 0.3% or less (categorized as hemp) for production. This made it possible for producers to gain access to grants and insurance as well as easing the process for those who sell products containing CBD.

Today, 33 states have legalized the use of medical marijuana, and 14 further states have allowed limited use of CBD. In 11 states recreational use of marijuana is now legal while a further 16 have decriminalized the drug. While marijuana is still not legal at a federal level, these increasing freedoms are propelling the acceptance of CBD.

Help is at hand

Cannabis Banking Solutions understands the complexities and effort it takes to appropriately service the CBD market, and we are more than up to the challenge. Our team is dedicated to creating a long term partnership with your business and working through problems as a team. Our bank partners feel the exact same way and are proud to contribute to the growth of a space they support. Whether you've had your account suspended, are setting up for the first time or are a veteran in the industry, we are here for you going forward.