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CBD Businesses and Merchant Accounts

The 2018 US Farm Bill ushered in a revival of high-quality hemp extracts with low amounts of THC (no more than 0.3%). As a result, cannabidiol, or CBD oil, has exploded on the wellness market and it has allowed for the production and marketing of hemp-derived CBD products (ie. oils, beauty products, edibles, and beverages) without federal regulation.

The CBD market in the US was around $5 billion in 2020 and the industry is expected to top $17 billion by 2025 (Statista 2021).

As a result, merchants who sell hemp-derived cannabidiol are scrambling to open merchant accounts that can process CBD payments.

CBD Products and Merchant Accounts
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Industry Stats

  • With estimated sales of 730 million U.S. dollars, the state of California was the country’s leading market for CBD products (Statista 2021)

  • Online share of hemp-derived CBD sales is 66% (Statista 2021)

  • 33% of American adults have used CBD once or more (SingleCare, 2020)

  • Hemp-derived CBD products are legal in all 50 states, as long as they contain no more than 0.3% THC (Food and Drug Administration, 2020)

  • Of the Americans who use CBD, the most common uses are for pain relief (64%), anxiety (49%), and insomnia (42%) (SingleCare, 2020)

  • Of all age groups, Americans age 18-29 are most likely to use CBD consistently, and its popularity decreases with age (Gallup, 2019)

  • 44% of regular CBD users spend $20-$80 per month on CBD products. 13% spend more than $160 per month (Brightfield Group, 2019)

CBD Products and Merchant Accounts

CBD Merchant Accounts

Unfortunately, there are currently very few payment processor providers out there who can place CBD vendors. It remains illegal in parts of North America, Europe, and Asia, which acquiring banks are cautious in offering solutions for payment processing for CBD.

Most sellers of this product should be prepared for higher-than-average transaction rates due to the elevated risk associated with the industry. However, the security and convenience that comes with accepting credit cards may make it worthwhile for some sellers.

Our payment processor partner (one of the best rated processors in the merchant services industry) is currently approving CBD merchant accounts for credit card processing.

If you are a CBD vendor or business owner who is hoping to open a CBD merchant account or would like better rates, click here to apply for an account today.