Payment Processing

Why should CBD companies have trouble finding merchant processors now that CBD is federally legal? 

When the 2018 Farm Bill passed, there was hope that the newly acquired legal status of CBD would make payment processors receptive to CBD. And in fact, things looked good when Elavon, a major domestic merchant processor (and US Bank subsidiary) got in on the action early announcing that it would start providing payment processing for the CBD industry. Sadly they quickly jumped ship only weeks after that announcement, giving their CBD clients only 45 days to find alternative payment processors.


Two things, there are a lot of rules around the production and sale of hemp-based CBD need to follow and the FDA is still working out CBD’s regulatory framework. That means that many of those regulations aren’t even clear yet! This adds a second (scary) layer to the already high-maintenance nature of the CBD industry from a payment processor’s point of view.

And that’s not all.

CBD is also part of the already occasionally dodgy world of nutritional supplements which has been known for its bad actors.


Payment is a bit quirky, and ever changing to meet the needs of the industry. For now I am opting for personal payments or can send credit card authorization forms.