How do merchants sell CBD?

CBD or Cannabidiol is a non-narcotic or non-psychoactive substance found in pure marijuana. The compound has yielded great results in treating epilepsy, schizophrenia, joint pain and many more. However, the retail sale of CBD is prohibited by the government. CBD oil is only legal in 50 states and it’s sale is a very risky business as bank payment and other payment processes have a lot of hurdles put-forth by the legal authorities as seen on


If done legally, the sale of CBD oil is an extremely profitable venture since the demand is rising by the day. But first, a person must procure the license from legal authorities to become a merchant. And since the business is very risky, the merchant needs to have good financial stability at least for the next 6 months. Many merchants try to push in CBD oil in the name of e-cigarettes and other substances. If caught, the merchant account will be closed and there is severe punishment involved.

Since most of the work is done online these days, the sale of CBD is also preferred online. It is very important to choose the right payment processor which is suitable for high risk businesses like these. There are many payment frauds included in the business and it needs a very secure payment gateway to keep you going. Nonetheless, a merchant cannot use the likes of PayPal, Stripe and Skill as they aren’t meant for such ventures and the account will be closed in no time.


The two biggest obstructions stopping you from being a CBD merchant are-

1. Opening a bank account for transactions- It is by far the greatest barrier present in your way to success. Most banks shy away from opening an account for CBD pursuits.

2. Chargebacks- More the number of chargebacks, less the trust. Chargebacks are inevitable but the merchant must try and maintain a very low rate to avoid his function being shut down.


A secure CBD payment gateway is one which handles all CBD transactions efficiently. But not all online payment gateways are strong enough to handle such risks.

One must look for the right payment gateway which goes hand in hand with the business and knows all the rules and regulations wrapped up with it.

Some of the rules are as follows-

1. The merchant should not sell Cannabis seeds or Medical Marijuana.

2. No image of Cannabis leafs should be present on the merchant website or product packaging.

3. Tobacco or Nicotine shouldn’t be a part of the product.

4. THC (Tetrahydrocannabidinol) should be 0.3 or less.

If you can view such basic rules in the payment gateway’s website, it means that the gateway is being trusted by many merchants and it is not fraud.

The merchant should check the popularity of the payment gateway and look for it’s experience in selling CBD. He/She must read all the rules and regulations prescribed by the gateway beforehand when trying to obtain it’s services.

The payment processor must have partnerships with major banks so that the path becomes easier and less time consuming. It is better if the gateway supports the use of credit cards for purchase operations. Some of the popular gateways like eMerchantBroker (eMB), lnstabill, High Risk Holdings and T1 payments are well versed in the process and are very much dependable.


If you are planning to become a CBD merchant, be aware of all the legal policies and hazards in the business, build up resources, make up your mind and only then try to pitch in. Good luck.