In the United States, CBD oil is considered legal in many states like California, Colorado, Connecticut, Delaware, Florida, and others. Selling CBD products is considered a high-risk business due to its legal boundaries and translation limitations.

Moreover, it’s still illegal under federal law, and other states have drug laws. This creates problems for merchants who want to sell CBD products or services but need help because of the high-risk nature of these businesses. However, a reliable merchant account for CBD companies is a good choice for making business activities smooth.

What is a high-risk business?

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You may have heard the term “high-risk business” when discussing CBD merchant accounts. Many types of businesses can be considered high-risk, and there is no standard definition of a high-risk business. However, there are a few general guidelines that most merchant account providers follow when assessing if your business will be approved for a merchant account.

Who are merchant account providers?

Merchant service providers (MSPs) are usually banks that provide credit card processing services to merchants that sell products or services. They are also known as payment processors, and the main function of a merchant service provider is to process and settle credit card payments for merchants. MSPs can be divided into three categories:

  • Merchant acquirers – these are the second-party companies that facilitate transactions between merchants and their customers;
  • Third-party gateways – these provide software for processing payments electronically;
  • Independent sales organizations (ISO) – It acts as middlemen between clients (typically large businesses) and acquirers.

Issues faced by CBD merchant accounts

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  • Difficulty in getting FDA approval

As you may know, the FDA is responsible for ensuring that all food, drugs, biological and medical products, and hospital devices are safe and effective. As such, it’s their job to approve any CBD products sold in the US. However, they have not approved any CBD product (though they did allow GW Pharmaceuticals’ Epidiolex to be approved as a prescription drug).

  • The unreliable payment processing platform

Being a high-risk business means you can be approved for a merchant account. Opting for reliable CBD merchant accounts for CBD companies is the best way to deal with issues related to payment processing. Many businesses manage all business transactions that are high-risk and still manage to get approved for merchant accounts.

  • Legislation issues

Except for Idaho, CBD is legal in all 50 states in the US. However, this doesn’t mean that they are all created equal. In many cases, when it comes to CBD oil, laws vary from state to state.


Some states have specific laws regarding the use and distribution of marijuana-derived products like cannabis oils or edibles; others do not have any rules. This creates an unstable regulatory environment for businesses selling hemp products across the country.


In conclusion, while it is possible to get a merchant account as a CBD business, there are several hurdles you will need to overcome. Merchant Service Providers assess the risk in offering merchant accounts based on two significant factors – business type and history. Getting a good payment processing merchant account helps in managing most business transactions.

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