CBD payment gateway news – updated 04/02/2020 with CARES act information-
Updated regularly, this page includes information on CBD e-commerce based on what we hear from clients, colleagues, and payment industry experts.
As always, do your own due diligence on all services before you sign up, and please seek qualified legal guidance before launching a CBD business.
Established in 2002, A+ rated, and BBB accredited, Tasker Payment Gateways LLC helps site owners with payment gateways, merchant account recommendations, and e-commerce solutions.
Looking to stay up to date on new CBD payment gateway developments?
In addition to reading our regular CBD payment gateway updates, posted below – we strongly suggest you “like” or “follow” one of our social media pages.
04/02/2020 The CARES Act & the SBA: Do CBD businesses qualify for loans and grants?
With the passage of the 2.2 trillion dollar CARES Act, which was signed into law by the President last week, we have received a lot of questions about the $377,000,000.00 allocated to small businesses and whether or not it applies to CBD businesses.
Additionally, we have read a ton of confusing information out there regarding the $10,000 emergency payments to small businesses and the PPP loans – which in some circumstances do not need to be repaid at all.
Below are links to a handful of reputable, online resources. We hope this helps you, and your online CBD business, navigate these uncharted waters.
Can CBD businesses apply for Coronavirus SBA loans, grants, or other SBA programs as provided by The CARES Act?
The answer appears to be YES. According to long-standing guidance first issued by the SBA in April of 2018, legal, hemp-derived, Farm Bill compliant CBD businesses are allowed to take advantage of SBA programs.
We have not seen any information contradicting this guidance in the CARES Act, and the SBA’s guidance is still available on the SBA.gov website. This does not include activities that are still federally illegal.
Where can CBD businesses learn about the different small business programs available through the CARES Act?
There is a lot of information out there on The CARES Act, and much of it is a bit confusing and sometimes contradictory.
Let’s sort this out.
Here are some helpful links on The CARES Act from credible sources.
- The Small Business Administration guide on PPP. The SBA’s outline of the PPP, or Paycheck Protection Program discusses ways in which these loans can be forgiven and provides a sample SBA application to review. Below is a relevant section that discusses loan forgiveness.
The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.
- The United States Senate’s guide on the CARES Act. The US Senate’s CARES guide looks like it’s well put together. It outlines some key aspects of the law, including the $10,000 advance that does not need to be repaid. Below is an excerpt.
Economic Injury Disaster Loans & Emergency Economic Injury Grants
These grants provide an emergency advance of up to $10,000 to small businesses and private
non-profits harmed by COVID-19 within three days of applying for an SBA Economic Injury
Disaster Loan (EIDL). To access the advance, you first apply for an EIDL and then request the
advance. The advance does not need to be repaid under any circumstance, and may be used
to keep employees on payroll, to pay for sick leave, meet increased production costs due to
supply chain disruptions, or pay business obligations, including debts, rent and mortgage
- The United States Chamber of Commerce Coronavirus FAQs. The US Chamber has put together the answers to 10 common Corona relief small business questions and answers. Their FAQs cover important issues like whether or not self-employed business owners qualify. The FAQs include both Emergency Disaster Loans/Grants and Paycheck Protection Loans. Here’s a sample:
What loans are available to help small businesses during Coronavirus?
– The Economic Injury Disaster Loan from the Small Business Administration (SBA).
– The Paycheck Protection Loan (Part of the CARES Act).
- United States Treasury PPP Fact-Sheet. The US treasury has an online PDF that goes over the details of the Paycheck Protection Program. It details loan qualifications, historical requirements that are being waived for this program, what qualifies as payroll and a lot more. Below is a sample section that talks about interest rates for any non-forgiven portions, personal guarantee waivers, and collateral.
What is my interest rate? 1.00% fixed rate.
When do I need to start paying interest on my loan? All payments are deferred for 6 months;
however, interest will continue to accrue over this period.
When is my loan due? In 2 years.
Can I pay my loan earlier than 2 years? Yes. There are no prepayment penalties or fees.
Do I need to pledge any collateral for these loans? No. No collateral is required.
Do I need to personally guarantee this loan? No. There is no personal guarantee requirement.
***However, if the proceeds are used for fraudulent purposes, the U.S. government will pursue
criminal charges against you.***
- Cooley LLP. Cooley is one of America’s most prominent law firms with hundreds of attorneys. They have put together an overview of SBA Programs Under the CARES Act that discusses who qualifies. Their section on salaries and sole proprietors may be especially helpful to small businesses. In part, it states:
What costs are included in “payroll costs”?
Payroll costs include the total amount of any compensation to (1) employees in the form of a salaries, wages, commissions, cash tips, payments for leave, severance, group health care benefits, retirement benefits, or state or local taxes assessed on employee compensation, and (2) a sole proprietor or independent contractor in the form of wages, commissions, income or similar payments not to exceed $100,000 per sole proprietor or independent contractor in one year prorated for the covered period.
We are not lawyers and cannot provide any advice on whether or not you should pursue these options. You should always seek qualified legal advice. What we can do, though, is provide expert payment gateway and merchant account recommendations to any CBD business owner that needs to accept credit cards online. Contact Tasker Payment Gateways LLC to get started.
03/12/2020 With Bank of Albany tightening, will others fill the CBD payment processing void?
After the Elavon CBD processing shutdowns in 2019, thousands of CBD start-ups, in addition to established businesses, found themselves with no way to accept credit cards. Thankfully, other processors stepped in to assist new and established CBD site owners with payment processors.
A bit of background: The payment processing world operates through a network of independent sales organizations, or “ISOs,” that in turn contract with sponsor banks. In the case of Elavon, their sponsor bank was US Bank, of which Elavon was also a subsidiary.
In the post-Elavon world, many credit card processing companies have aligned themselves with a well respected financial institution based in Texas. This sponsor bank is commonly referred to by agents, ISOs, and CBD businesses as “Bank of Albany” or “Albany.”
What has changed with Albany’s CBD startup processing?
After speaking with dozens of CBD website owners and payment processing professionals this week, this is what we have learned: Bank of Albany seems to be still allowing CBD websites, but they have tightened their underwriting.
Our take is this: Albany appears to be a reliable, trustworthy solution for many businesses, but they likely became overwhelmed by the volume of CBD merchants entering the market and decided to pull back a little, at least for now. Unlike more established industries, CBD is relatively new, and this means there is a more significant amount of start-up activity compared to other product types.
If you would like to be introduced to an agent that places business with Albany, among other CBD payment processing resources, let us know.
How do the changes made at the Bank of Albany affect CBD site owners?
In practice, it means they are becoming pickier and are only taking established, predictable CBD sites with a stable processing history.
Also, from what multiple sources have told us, Albany’s ISOs are issuing termination notices to some CBD companies. Apparently, terminated merchants were approved for processing over the previous year or so but had not yet launched their business or begun accepting online sales.
Luckily for businesses entering the world of accepting credit cards for online CBD sales, there still are multiple options, even for start-ups.
01/31/2020 Question of the month: Authorize.Net and CBD
January has been a great month in terms of our ability to recommend stable payment processors to CBD website owners looking to get started selling online. In this ongoing “online CBD payment processor” update post, we work to provide news and tips to CBD site owners in a clear, helpful way, and address common questions when we notice a trend.
This month, questions about the Authorize.Net payment gateway and CBD have been frequent; therefore, we want to address it.
Does Authorize.Net allow websites to sell CBD?
The short answer is yes, but as with many high-risk payment gateway questions, the short answer can be misleading and can cause business owners real trouble.
Here’s why. Authorize.Net is, at its core, a payment gateway. A payment gateway simply “connects” a merchant account to a shopping cart, like Shopify, WooCommerce, or, via a 3rd party like Foxy or Ecwid, to “drag and drop” site builders like Wix or Squarespace.
The distinction between a payment gateway and a merchant account (often called a credit card processor) is often vague. Compounding this is the fact that if one visits Authorize.Net’s website, there is an option to get an all in one solution that includes both a merchant account and a payment gateway – but not necessarily a CBD merchant account.
The software, or payment gateway piece, Authorize.Net, has historically worked very well for site owners when connected to a CBD friendly merchant account. Often, and unfortunately, site owners do not realize this and end up with a payment gateway connected to a processor that will not allow CBD sales.
For an Authorize.Net payment gateway to work for a CBD oil site, it also needs high-risk processing set up on the “back end.” (Contact us anytime to learn more.)
What is the best way to set up Authorize.Net so that it works for CBD sites?
Admittedly, pairing site owners looking to accept credit cards online with a stable payment gateway and processor is what we do for a living, so we do have a bias. That aside, the only reliable way to accept credit cards online for CBD oil, or other hemp products, is to work with someone that understands which credit card processors are the best fit for your CBD site based on your product type and your website software.
Specialized providers set up Authorize.Net gateways underwritten for CBD
We find that speaking with a vetted, independent payment processing agent is best. Once they fully understand what you are looking for and how they can help, they will then move forward with setting you up with Authorize.Net and connecting it to a CBD merchant account provider that works for you. They also add no direct cost as they, like us, are paid by the processors and gateways – not by you.
If you would like to know more about the CBD payment gateway set up process, please read our “Selling CBD on-line 101” post, it goes over all the specifics. And, as always, please contact us for a CBD merchant account recommendation- we are always happy to help.
12/13/2019 Which banks offer CBD business checking accounts?
One thing that surprises many new CBD site owners is that there are still hurdles when setting up a CBD friendly business banking account. Luckily, that trend is moving in the right direction.
Twelve months ago, obtaining a checking account for a CBD business was extremely difficult. Now, with the passage of the 2019 Farm Bill, which loosened industrial hemp regulations, among other items, online business checking accounts for CBD are easier to come by. The final passage of the SAFE Banking Act should speed this positive momentum even further.
Over the past week, we have spoken with independent agents that have gathered a list of CBD friendly banks that offer straightforward checking account set-ups. Conveniently, some of these banks can do the whole thing through email and online, and it only takes 2 – 3 days, typically.
If you would like a CBD business checking account, payment gateway, or a merchant account recommendation, drop us a note using our contact form by clicking here and well get you the information you need to get started.
12/06/2019 High-risk + high-risk does not always equal higher risk when it comes to CBD and MLM’s
2019 is ending on an excellent note for CBD sites in need of processing. A little more than six months ago, thousands of CBD web-sites on WooCommerce, Wix, Shopify, and Squarespace, among others, were dropped by Elavon and left without a way to take credit cards.
The aftermath, for many of these affected CBD businesses, was awful. Many ended up submitting a half dozen or more CBD merchant account applications only to wait months to find out they were declined, or that their new solution had so many challenges that operating a business was nearly impossible.
Now, in December, there are multiple, stable, US-based solutions allowing CBD sites.
CBD MLM merchant accounts
Nothing demonstrates the dramatic improvement in the CBD payment gateway industry more than the fact that CBD MLM’s now have reliable US credit card processing options too.
MLM’s are considered a high-risk industry by payment providers – as is CBD – so the ability to recommend solutions to site owners that offer a CBD based MLM is something we did not expect to see so soon.
11/26/2019 Selling CBD? Consult a qualified attorney – please. FDA in the news
The FDA is making some news. In this installment of “CBD payment gateway news,” we discuss legal advice and selling CBD the safe way. Earlier today, the FDA issued a statement that they have sent warning letters to 15 CBD companies informing them that what they are doing violates the Food, Drug, & Cosmetic act. You can read more about it on Forbes.com.
Don’t set yourself up to fail
There is no better way to wreck your holiday season than to find yourself in a headlock from the long arm of the law, so, please…. before you sell any regulated product, get a lawyer. Before you add any new regulated product types to your website, get a lawyer.
We are not attorneys, we don’t play one on TV, and we certainly do not give legal advice on the Internet. But, we do try to keep up to date on the CBD industry and work hard to keep our readers informed. A quick search of this site for the word “attorney” comes up with a minimum of 11 pages, with dozens upon dozens of references on topics ranging from cigar payment gateways to vape to CBD.
Why are we so repetitious about this? Because… again.. we are not lawyers, and if you are going to sell online, you need to make sure you are not breaking the law. Don’t get legal advice from a website; sit down with a trusted lawyer who knows CBD.
11/22/2019 The list of shopping carts that work for CBD is growing
We hope all our readers have a turkey in their freezer, canned cranberry sauce in their pantry, and are fully prepared for Thanksgiving! We want to pass on a little good news that CBD site owners can be thankful for before this upcoming holiday week.
Over the past year, since the Elavon pull-out, CBD e-commerce has been in flux, especially when it comes to finding a CBD payment gateway that works for all the popular carts. As we have discussed below, though, the situation continues to improve.
We have spent some time this week speaking to independent agents and providers, and we have come up with a list of popular shopping carts and site builders whose users have been able to successfully set up credit card processing for CBD in the past week.
This list is not comprehensive, but it covers most of the big ones.
- Foxy.io / Foxy cart
As always, if you would like a CBD payment gateway and merchant account recommendation, we can help.
11/12/2019 CBD merchant account approvals: doc prep and site work
November has been a busy month, and CBD processing, as always, is ever-changing.
First, the good news: every day, we are seeing more CBD site owners approved for a payment gateway and a merchant account that works for their products and with their shopping cart.
Now the harder part: approvals this month are, at times, requiring a more careful and thorough preparation of documents and more careful website updates than ever before.
Over the past week, we have seen a consistent theme – more documents are required, and fewer website deficiencies are acceptable. Below is a sample of some of the website requirements we are seeing some processors implement, and below that are some of the documents those CBD merchant account providers commonly request.
NOTE: Not all the site requirements and documents below are needed for all processors. If you need help accepting credit cards for CBD, let us introduce to an agent who can assist. Contact us here to get started.
Common website requirements for online CBD processing
- Shipping Policy
- Refund Policy
- Terms & Conditions
- Visa & MasterCard Logos
- Contact Us link including phone number, email, and city, state & zip
- Photos of all products being sold Pricing for all products must be clearly shown
- Must have age verification upon entry or at checkout on the site
- Certificates of Analysis for products must be posted on the site
- Customers cannot make product claims specific to ailments (for example, stress or anxiety)
- A disclaimer stating “no THC” or “xx.xx% THC content or less” must be posted on the site
Lastly, many CBD processors require websites to have an FDA Disclaimer; here is an example:
The statements made regarding these products have not been evaluated by the Food and Drug Administration. The efficacy of these products has not been confirmed by FDA-approved research.
These products are not intended to diagnose, treat, cure or prevent any disease. All information presented here is not meant as a substitute for or alternative to information from health care practitioners.
Please consult your health care professional about potential interactions or other possible complications before using any product.
The Federal Food, Drug, and Cosmetic Act requires this notice.
Examples of documents that may be required to accept credit cards for CBD
Again, this list does not apply to all processors, so please reach out to us if you need help getting started, or if you need a CBD payment gateway and merchant account recommendation. Some processors do require all or nearly all of these items, so if you are planning on applying soon, it does not hurt to familiarize yourself with the list of possible documents below.
- Articles of Incorporation or Organization
- Operating Agreement for LLC OR By-Laws for Corporation
- SS4 or 147C IRS EIN letter (If you don’t have this, it’s fast and easy to get from the IRS — call
- the IRS Business & Specialty Tax Line toll-free at 1-800-829-4933, or contact us for more details)
- Business license (If selling a product that requires a license)
- Voided Check OR signed & dated Bank Letter
- 3 Months most recent Processing Statements
- 3 Months most recent Business Bank Statements
- Current business utility bill in DBA or Legal name with business address
- Personal utility bill confirming owner(s) home address
- Copy of Driver License or Government-issued ID
- Domain registration screenshot verifying domain ownership
- COA (Certificate of Analysis) for every CBD or hemp product sold. Also known as lab result/test
- Export of all products sold on the site
- Any fulfillment center or 3rd party call center agreements (If you handle fulfillment, let me know)
11/06/2019 Wix and Squarespace CBD processing improving
The ability to set up a CBD friendly payment gateway, along with a CBD merchant account on the back end that makes it all work, has gotten easier for business owners on both the Wix and Squarespace platforms.
Neither Wix nor Squarespace offers a built-in solution that allows CBD. Therefore site owners need to utilize plug-ins or widgets that allow the use of their existing website – but swap out the cart piece.
There are two main ways to process CBD on Squarespace or Wix: Ecwid and Foxy
The choice as to whether Ecwid or Foxy is best depends more on which processor is the best fit than on which solution is. Some processors integrate with gateways that work well with Foxy, and others have direct plug-ins with Ecwid. Regardless, finding homes for CBD sites looking to accept credit cards on either of these 3rd party carts has gotten easier over the past few weeks.
More processors are coming on board, and the existing processors are improving and streamlining their solutions. We expect this trend to (hopefully) continue as CBD becomes more mainstream. As it stands, CBD payment acceptance for sites built on Wix or Squarespace is better than it has been in months.
If you would like a CBD payment gateway and merchant account recommendation for either Wix or Squarespace, contact us anytime.
10/31/2019 CBD payment gateway updates: multi-pay still working well for many, traditional solutions are opening up, and approval times are getting shorter
Happy Halloween – we are delighted to say, that for many, CBD processing has become a lot less scary lately. Here’s a rundown of the most impactful CBD payment topics we have been discussing with site owners this month.
Authorize.Net and NMI integrations are getting easier and better – again.
For many site owners, integrating via one of the “big dog” high-risk payment gateways like Authorize.Net or NMI is a far simpler solution. Unfortunately, for smaller CBD site owners, this has been challenging since Elavon dropped out of the CBD market in the spring of 2019. Lately, we have seen movement on this front.
Using either a high-risk Authorize.Net integration or an NMI gateway is important to many business owners for many reasons. Shopify CBD merchants, for example, are limited to either a processor with a direct Shopify plug-in or processors that allow Authorize.Net integration. This is due to Shopify’s somewhat limited payment gateway options and the restrictions around Shopify’s version of Stripe – called Shopify payments. BigCommerce merchants often prefer NMI, and a site owner that has stored recurring billing info in either Authorize.Net or NMI will often want to retain that functionality without having to transfer data.
New options (and old options that are new again)
We have seen 3 “new” traditional, US-based, Authorize.Net and NMI compatible CBD solutions open up this month. We put “new” in quotes as 1 of them is a processor that is accepting new applications again after a long hiatus. The distinctions between these new processors revolve mostly around underwriting criteria, cost, products allowed, and their willingness to accept smaller businesses.
Monthly fees, not including separate gateway fees charged for the Authorize.Net or NMI piece, run from as low as $0 per month to over $100 a month, and the types of products allowed range from hyper-restrictive “topical only” solutions to processors willing to accept a full range of oils, tinctures, and other ingestibles. Not surprisingly, some of the less expensive options often require either bank balances exceeding $5,000-$10,000 or prior processing history. But, for smaller, less capitalized folks, the somewhat more expensive options are still a way for them to establish themselves and, over time, negotiate better rates.
Approval times are getting better
Approval times for both traditional and non-traditional CBD processors were historically terrible this year. Some site owners were forced to wait literally months before they were able to find, and get approved for, suitable CBD processing. One very positive development we are seeing this month is the improvement of approval times.
We are seeing CBD site owners get approved for merchant accounts relatively quickly, often in less than two weeks. Non-traditional credit card processing solutions are sometimes approving CBD sites in as little as a week. They are integrating very well with a host of shopping carts like Shopify, WooCommerce, and even Wix and Squarespace – although depending on the solution, Wix and Squarespace sometimes require additional software pieces to work.
Multi-pay is aging well and getting better
One innovation that has suited CBD well and that seems to be improving over time, is the multi-pay option. Similar to other “pay over time” solutions, your CBD customer uses their credit card to checkout on your site. They are then given an instant, free account with the processor. Instead of paying everything upfront, they pay only 25% and then have three easy, interest-free, automatic payments left. Or, they can pay in full immediately after the very first payment. You, as the site owner, get paid all your money upfront, and your client pays over time.
There were challenges with this solution in the past, for example, some customer confusion, and some state by state implementation issues, but those seem to be smoothed out – and the feedback we are getting is positive.
One thing that has remained consistent with the multi-pay solution is that they are quite open to startups; they integrate easily with Shopify and WooCommerce and are open to a wide variety of CBD product types.
10/04/2019 “What does ‘multi-pay CBD option’ mean?” and “how do I sign up for Square’s CBD beta program?” dominate the questions we’ve received lately
The first week of October has ….so far… been one of the best we’ve seen for CBD site owners since Elavon was in the CBD business last spring. We are seeing a lot of businesses find suitable CBD processing and start to move the inventory they have built up since the Elavon CBD fiasco. We hope this trend continues. Here are the highlights and some “how to’s”:
What is multi-pay checkout processing for CBD?
Multi-pay, also known by many other names, like split-pay, flex-pay, or easy-pay, is a really interesting solution that’s come about lately. This solution is VERY CBD friendly as it allows virtually any legal form of CBD out there. Additionally, it integrates seamlessly with WooCommerce and Shopify, and – via ECWID, works with limited functionality for Wix and Squarespace sites too.
Multi-pay credit card processing solutions can also work alongside traditional processing too, meaning both options could appear at your checkout.
Multi-pay has been working well for CBD folks. It integrates with standard carts and, with full integration, auto-populates a simple multi-pay option (often a four pay) showing what the payments would be – alongside the products before they are added to the cart.
It creates a familiar, straightforward, interest-free, multi-pay like many folks are used to seeing online or on TV shopping channels.
Online shoppers see a “4 easy payments of …” amount and are instantly approved for easy pay purchases. Because multi-pay works well with Shopify and WooCommerce, it’s been very popular. Contact us anytime for details or for a recommendation on a CBD friendly multi-pay solution.
Here’s some feedback we have heard from folks who use a multi-pay CBD solution as their only processor:
- Set up is straightforward as the provider does the integration for free.
- Costs are low, especially fixed monthly fees.
- Without a detailed explanation of the payout process clearly listed on your site, there can be some checkout confusion when multi-pay is your only processing option. Our partners have sample verbiage that converts well. Feel free to contact us for recommendations
- Site owners are happy with the payouts as the business is paid their money in full, net fees, even when customers pay by credit card over time.
- Business owners find their average sale amount generally goes up when customers can split their payments.
In addition to being a stand-alone solution, it also can exist alongside other processing solutions, such as the Square CBD Beta program discussed below.
Square’s CBD beta program
So far, we’ve heard ok feedback from a handful of folks using the Square beta CBD program. It can be tricky to get in to and has some restrictions, but for those using it, it works. Here are some highlights:
- The “easy” integration options feel pretty limited. WordPress folks and, interestingly enough, “Limelight CRM” users appear to have the easiest path to integration as those solutions have the Square API as a “native solution,” meaning it is built into their platforms and does not require additional layers of software.
- Allowed CBD product types are a little limited. Items like vape, e-liquid, flower, etc. are completely off-limits.
- Support is “virtual.” We have heard that getting live human support is a challenge, but often Square’s program is “referred” by a payments pro who generally can provide a layer of support without adding any significant cost – or any at all – depending on the situation.
- Shopify integration is possible, but we recommend working with a company familiar with the integration process as the Shopify/Square connection for CBD is not intuitive and requires workarounds that can be costly. Contact us for a referral.
08/13/2019 Topical CBD, high volume USA CBD sites, and Canadian CBD businesses are all hot topics
As the ever-changing world of CBD merchant accounts continues to….. well… ever change… we are hearing some consistent themes and for the most part, the trends feel like they are going in the right direction.
The good news we are hearing so far this month:
Topical CBD vs. ingestible CBD and tinctures- It has long frustrated site owners that sell CBD creams and skincare products that they were classified at the same risk level as CBD merchants selling products designed to be ingested. This seems to be changing- to the point where some CBD oil merchants are marketing their product not as an ingestible, but rather as a topic oil. We recommend ALL CBD site owners consult an attorney and ensure that their products and their marketing are well within the current regulatory structure, but for site owners that do sell true, topical only, CBD, the payment gateway market feels stable. This is good news.
Canadian CBD merchants selling to Canadians in Canadian dollars- This type of account has really matured, it feels. Canadian site owners that need a payment gateway to accept CAD from Canadian clients are now, for the most part, able to accept credit cards in a fairly straightforward way.
Large US CBD sites selling to US clients- Much to the frustration of smaller CBD business owners, the options available to stores and websites selling more than $50k per month is still more diverse and generally less expensive. The processors are – believe it or not- still digging out from the rubble of the Elavon shut-downs and many of them still strongly prefer established business with credit card processing history showing $50,000 per month in processing. Over the past few months, there have been many processors that “opened up CBD processing” to larger merchants- often to abruptly stop accepting applications almost immediately – sometimes with little or no communication to the site owners or merchant account agents caught up in the policy change. We hope this recent trend of stable solutions for larger merchants remains stable. As for new sites, there are still options for start-ups, just not as many.
Zen cart, cube cart, and CBD payment gateways seem to be playing well together. In addition to WooCommerce, which has been leading the way in terms of flexibility, both Zen Cart and Cube Cart have some CBD friendly integrations we have heard some good things about. Shopify does as well, but that integration, like many others, is imperfect for CBD, but functional.
- Card association audit talk and a lack of all card types for many processors- One item that seems to still be a real issue for some processors is the ability to accept all four major card types for extended periods of time. It is often described to merchants as an “audit” by a card brand and disruptions are usually temporary – but, they also often come with additional restrictions. Regardless of the reasons, it is an issue still and many e-commerce merchants are patiently awaiting the green light from their processor that they can accept all major US credit card brands again. This tends to affect “start-up friendly” processors more than those few processors working with larger, more established CBD businesses.
Need CBD payment gateway and merchant account advice?
If you are a CBD site owner that would like to speak with a vetted, independent CBD payment gateway specialist, please contact us here for a recommendation.
07/17/2019 Retail, wholesale, and major cart credit card acceptance feels more stable
After the big Elavon shut down in March of this year the CBD market, in terms of payment gateways and credit card processing, was in real turmoil. The news changed daily, and providers struggled to not only keep up with the flow of applications but also to interpret the requirements of their processors and sponsoring banks.
Many well-meaning brokers, agents, and processors inadvertently gave out payment gateway and credit card processing information that ended up no longer being accurate by the time it was delivered.
The situation appears to be improving – slowly. Although the CBD payment gateway market is still developing – and not nearly as established, affordable, or predictable as other payment gateway verticles – like smoking accessories, vape, or cigars, for example, there has been a small but noticeable slowdown in the rapidness of changes in the CBD payments arena.
Based on our many ongoing conversations with CBD site owners, merchant account brokers, and site developers- a few areas, in particular, seem to have become somewhat more reliable and consistent.
Here are some highlights of what we are hearing this week:
- Retail – brick and mortar businesses that accept chip or swipe transactions are having an easier time finding traditional terminals and the back end processing that goes with it.
- Wholesale CBD websites – e-commerce CBD sites that sell to retailers and other e-commerce merchants are able to find solutions that allow for emailed invoicing, credit card payments and ACH’ed invoice payments
- Major card and site builder consumer CBD websites (“normal” CBD sites) – business owners that sell CBD oils, soaps, lotions, and other common CBD products online are still greatly affected by the site builder they use. Accepting credit cards for CBD is far more straightforward when using a site builder like WordPress/WooCommerce, OpenCart, Shopify, or Magento than many other solutions. Website owners using highly limiting integrations such as GoDaddy GoCentral are still having a very hard time with processing.
- Larger marketers using name brand CRMs – integrations are seemingly opening-up for folks using enterprise-level, or highly scalable marketing software. CRM systems used by many larger marketers tend to be fairly well supported by those processors willing to work with CBD. Customer relationship management systems like LimeLight, Konnektive, and Response CRM generally have better options than those using smaller, or custom CRMs.
If you would like an introduction to an independent agent that can give you the latest updates on what CBD merchant account options are available, please reach fill out our short contact form and we will get back to you right away.
06/18/2019 A pause in “big” approvals – WooCommerce, and B2B still viable as are mid-sized established CBD sites
As we discussed last week, the talk of the industry lately has been the major player who was boarding “domestic” or USA based credit card processing for large, established CBD merchants at great rates.
According to multiple sources, that processor has sent out notices saying that although the first few businesses that applied for a CBD merchant account are approved and things are looking great, any applications not yet approved (likely hundreds of them??) are in a holding pattern until the processor has time to review the existing book of CBD business on their systems. This could take days, weeks, or be indefinite.
As of June 18th, here is the state of the CBD processing world as we know it:
- CBD Businesses processing $75,000 or more a month no longer have a much easier path than smaller sites doing a fraction of that -at least as it stands right now.
- Businesses processing more than $15,000 per month, with solid financial backing and well thought out growth plans do have an option that does integrate with Shopify, Wix, WooCommerce, and BigCommerce, among others. This CBD solution has quite a few “hoops” involved and is pricey, but it works and has been around a while.
- CBD businesses using WooCommerce still have additional options available, even if they are start-ups.
- B2B, or wholesale CBD business also have additional options. These include secure, “card on file” options that allow wholesalers of CBD to have their business to business clients buy CBD inventory using a credit card that is securely stored for repeat business. This B2B option does allow start-ups and smaller growing companies.
- Canadian CBD website owners also have more options than US businesses with more favorable terms and easier integration with big site builders like WooCommerce, Shopify, WordPress, Wix, etc.
Contact us here to learn more or request a call with an independent agent who has their finger on the pulse of the industry.
06/12/2019 For the big dogs, communication resumes but slow approvals persist for smaller companies
The biggest buzz in the “Big CBD” processing world this week was the excitement around, and subsequent frustration following the “new” 75k per month and up, NMI/Authorize.Net compatible, solution. Based on our conversations with the independent agents doing the hard work during this time of “CBD’ageddon,” hundreds of applications have likely been submitted to this new solution and precious few have yet to be approved… If you are a “grass is greener” type, the good news is that some have been approved.
As we suspected the “straight to voicemail” underwriting situations and delays are being caused by the wave of high volume applications this provider is seeing. So, as it stands we are expecting the high-volume merchants who have already submitted applications to be approved, and are hoping that new merchants with a history of more than $75k per month will also be approved once the backlog dies down.
In terms of credit card processing and payment gateway integrations for small CBD companies and start-up websites, there are some solutions, but they are imperfect. As always, if you would like some information or an introduction to an independent agent with their finger on the CBD payments pulse, feel free to drop us a note any time here, and follow us on social media for updates. (Social media links at the top of this post).
05/30/2019 New US CBD solutions, and more props for WooCommerce
New US processor enters the CBD market – (again, if you are big enough)
We are still learning all of the details, but one thing is pretty clear. The future of CBD processing in the USA is looking brighter than the recent past. We are able to recommend this simple, domestic CBD processor to established US CBD companies who have a recent history showing their ability to process $75,000 or more per month.
On the negative side, this minimum volume requirement leaves out the majority of CBD websites, but we expect over time that requirement to come down. The logic behind the minimum volume is pretty solid, even if it is not what we all want to hear. The truth is, Elavon set up a huge amount of CBD merchants, many of whom are still scrambling to set up their processing. Any processor that wanted to open up CBD publicly to all merchants would be buried in applications. The minimums simply keep the initial workload manageable.
One of the best features of this new option is the ability to integrate it with a correctly set up NMI, or Authorize.Net account. This gives the larger CBD merchants that qualify tons of flexibility in terms of website builders. If you are processing more than $75k in CBD and need a processor based in the US that integrates with BigCommerce, Shopify, and – via Foxy.io – Squarespace and Wix, contact us for a recommendation. If you are small, or a startup, please read the section below.
WooCommerce leads the way in terms of CBD flexibility
When it comes to CBD start-ups and small CBD sites, one site builder stands out. WordPress, with WooCommerce. The “WP and Woo” combo offers almost unlimited integrations which allow us a broader range of possible solutions to recommend. Although larger merchants have more options, small merchants are best served setting up their sites using WordPress and WooCommerce.
04/22/2019 “Normal” CBD credit card processing does exist
US-based CBD startups do have processing options, but they tend to be more restricted in terms of card types allowed, and more expensive. In contrast, large, established CBD companies who process in the millions per year have more options. We have found that US processors, known as “domestic processors” in the processing world, have stable affordable payment gateway and credit card processing options. This is a new trend and we are working hard to keep up on the details.
Bigger CBD sites have a “leg up” in terms of taking credit cards
As of now, it does seem clear that large, US-based CBD processors have a real advantage in terms of taking cards. Big sites can set up a payment gateway that works with almost any site builder, including the popular ones like Shopify, WooCommerce, BigCommerce, & Foxy. Larger CBD business owners can also take cards without delays in funding or an excessive amount of false declines. Again, this is a rapidly changing environment, so please contact us here for the latest news or a processor recommendation.
04/09/2019 Elavon and CBD- here’s the latest-
UPDATE: Elavon has given existing CBD site owners an extension. CBD site owners using Elavon were told as early as March, 14th 2019 that they had only 45 days to stop processing CBD sales on Elavon’s system and find a new processor – this worked out to be April 28. Luckily, for site owners who did not immediately move forward with a new solution, there has been a reprieve, albeit a small one. Based on our conversations with site owners, agents, and sales organizations, Elavon has extended the shutdown date to May 16th. All CBD merchants will have to have a new processor in place by May 15th to avoid interruption.
Due to the recent shakeup in the US regarding CBD e-commerce merchant accounts and payment gateways thousands of hemp and CBD site owners are now finding themselves without a way to accept credit cards. Below we go over some of the top issues facing CBD site owners in terms of payments and discuss solutions as well.
CBD payment gateways in Canada unaffected by the industry turmoil
One item we want to make clear: Canada was by and large not impacted by the large CBD account terminations that affected US-based CBD website owners this year. We are finding it very easy to assist Canadian website owners with payment gateways and merchant account recommendations. Unlike US CBD merchants, the Canadian site owners we work with that ship to Canada are still able to use the same processors this year as they were last year.
Canada to US CBD more complex
One important note: Canadian website owners who intend to charge US cards and ship to US residents for CBD do need to consider far more in terms of options than site owners engaged in simple Canadian to Canadian B2C sales. Contact us to learn more
Payment processor requirements for online CBD in the USA
Be careful about what products you sell through your credit card processor. While there are card processors that work for CBD oil and hemp-based products, you need to be careful to read the fine print. At the same time, you need to be sure that your products cannot be interpreted or defined as a marijuana product. This means that you need to check that the products you intend to sell are allowed by the Controlled Substances Act, administered by the United States Department of Justice, Drug Enforcement Administration. Our trusted, independent agents can go over the processor agreements with you in detail – just contact us to get started.
Only sell hemp or CBD products through your CBD processor account. You want to make sure that you only process products that fall within the specific criteria outlined when you applied with the card processor. Many will outline that only a particular product type is allowed to be processed through it. In other words, if you sell pipes, glassware, or other paraphernalia, you should use a separate payment gateway or credit card processor for these different product types – likely on a different URL. Some products, like vape and CBD, can be combined, but it depends on your business. Again, contact us with any questions.
Make sure your products meet legal and processor requirements. As a high-risk merchant selling products with many regulations and legal scrutiny, your products must meet all relevant requirements. This includes that your CBD products have less than 0.3 percent tetrahydrocannabinol (THC) by dry-weight. Your products also need to be in line with all local, state, and federal regulations. You need to consult a qualified attorney before selling CBD online – we are not attorneys, and you should not consider anything on this page to be legal advice.
Your distributor needs to be licensed and should be local. It’s important for you to know that you should only buy cannabidiol/CBD from distributors licensed within the state you’re operating from. Additionally, most processors do not allow you to ship or deliver your products outside of the United States.