As local, state and federal governments weigh the pros and cons of legalizing cannabis for both medical and recreational purposes, the benefits of other products derived from cannabis are starting to take shape — like cannabidiol, known as CBD.
CBD merchant accounts are a relatively new product, but Instabill can help merchants selling health or dietary products that contain the compound to find the credit card processing solutions they need.
Looking for Something Else?
If you came here looking for information on medical marijuana or other herbal remedy merchant accounts, we have solutions for you. View our medical marijuana merchant accounts page or our nutraceutical merchant accounts page for more information. If you have specific questions, feel free to contact us any time.
Important CBD merchant account processing restrictions
Although cannabidiol is legal in the few states that have legalized marijuana for medical or recreational use, there are still some restrictions that merchants must be aware of:
- CBD merchants must be based out of one of the 25 states (and District of Columbia) that has legalized marijuana use.
- Because the U.S federal government deems cannabis to be an illegal substance, Instabill can only offer merchant accounts for cannabidiol through international/offshore acquiring banks.
What is CBD?
CBD is a compound taken from hemp plants that does not include large amounts of THC, which is the psychoactive/pain killing element in marijuana. CBD also contains a natural analgesic as well as anti-inflammatory and anti-anxiety properties.
How do I get a CBD merchant account?
Speak with a CBD merchant account manager directly at 1-800-318-2713, or simply click the button to get started.
Instabill offers an aggregate merchant account solution for CBD merchants with a shared billing descriptor:
Offshore CBD Merchant Accounts (with payment processing history):
- 4-6 months of payment processing statements with company name showing total sales, chargebacks/refunds and returns.
- 3 months of business banking statements
- Approvals: 10 business days to two weeks
Domestic CBD Merchant Accounts
- As marijuana remains illegal by the U.S. federal government, Instabill has no domestic solution for CBD.
CBD Merchant Account Approval Timetable
The only payment solution for CBD Instabill currently offers is an offshore aggregate merchant account with a shared billing descriptor.
The time it takes for CBD merchant account approvals varies with each merchant and their processing history. With all the supporting documentation and materials, Instabill can provide a credit card processing solution between 10 business days to 2 weeks.
What are the fees associated with CBD merchant accounts?
The fees Instabill charges depend on several factors, such as the merchant’s processing history, type of industry (high risk or low risk) and/or projected sales volume. Each merchant account is unique, but typical fees include:
- Merchant discount rate
- Per transaction fee
- Monthly statement fee
- Monthly gateway fee
- Six-month rolling reserve
- Chargeback fee
- Refund fee
Payment gateway integration for CBD merchant accounts
Every merchant account approved by Instabill and its acquiring banking partner includes access to the approving bank’s payment gateway. Instabill’s trusted banking partners offer a secure payment gateway for all transactions, with which you will connect the bank’s API to your website.