In recent years, CBD has become a go-to health product for many Americans, and with the passing of the Agricultural Improvement Act in 2019, the popularity of this substance is gaining popularity at top speed. Many e-commerce merchants, particularly those in the nutraceuticals and cannabis industries, are hopping on board with this new trend and hoping to get their share of the marketplace. However, Shopify’s CBD processing rules tend to get a bit complicated, which leaves a lot of merchants trying to figure out the best way to accept credit card payments online for CBD and CBD-related merchandise.
What Are Shopify’s Rules For CBD Products?
Even though hemp-derived CBD products are technically legal for sale in the U.S., many payment processors are hesitant to allow the sale of this product. While Shopify does technically allow its merchants to sell these products, it does require them to operate within state regulations and to find a third-party payment gateway for their business.
There are several steps involved when it comes to setting up a CBD store on Shopify.
- Create a CBD store on Shopify.
- Review Shopify’s Attestation for the Sale of Hemp and Hemp-Derived Products, sign it, and submit it.
- Apply for a third-party payment processor and connect it to your Shopify store.
What’s important to understand about this process is that while Shopify will allow you to host a CBD store on its platform, it does not assist the sale of any hemp or CBD products. While Shopify is partnered with several payment processors that can handle these transactions, it’s worth pointing out that this requires multiple steps to set up and gain approval for your store.
An Easier Way to Process CBD Transactions
While Shopify is certainly a viable solution for CBD merchants seeking a way to process online payments, the simpler solution is to find a payment gateway that specializes in high-risk payment processing and already understands the unique needs of merchants in this industry.
What are high-risk payment processors?
High-risk payment processors specialize in working with merchants that are deemed to carry a higher risk than other merchants. Typically, this label is assigned by banks and traditional payment processors because of the products the merchant carries, the type of payments they typically accept, or because of the merchant’s prior history with credit or payment processing.
High-risk processors are willing to accept this risk and provide merchants with the tools they need to succeed without facing common issues such as a high volume of chargebacks or account closures.
What to expect from a high-risk payment solution
A high-risk payment processor should provide you with a variety of tools and account features that help you successfully manage your business and mitigate risks such as fraud and chargebacks. Additionally, you should have access to support around-the-clock and assistance with installing and implementing your new payment gateway.
Process CBD Payments With PayDiverse
At PayDiverse, we work directly with CBD and hemp merchants across the U.S. to provide them with a secure and affordable high-risk payment solution. Our account features are designed to keep merchants operating efficiently and at full capacity at all times.
Some of the features we offer CBD merchants include:
- 24/7 support: Merchants can rest assured that we’re were to answer questions and troubleshoot issues 24 hours a day, seven days a week.
- Chargeback alerts: The moment a chargeback is processed against a merchant’s account, they’ll receive a notification from us, allowing merchants to provide evidence of the transaction and dispute chargebacks accordingly.
- Fraud protection: Our payment gateway is integrated with top-of-the-line fraud prevention software that alerts merchants of suspicious card activity and allows them to suspend or decline the transaction.
Get Started Today!
At PayDiverse, we have a high rate of approvals, low processing rates, and offer payouts within 24 to 48 hours. If you’re ready to get started with PayDiverse, complete one of our simple online applications today. We’ll review your application as quickly as possible and once approved, can have you up and running in just a couple of days.
Diverse Payment Processing is Smart Processing
Fill out our free and quick merchant account application and let us match you with many banks that want your business.