Cannabidiol (CBD) is one of 113 phytocannabinoids from hemp. It was first identified in 1940. The Cannabidiol is a non-psychoactive compound that forms about 40% of the total plant extract.

With advanced research into the uses of Cannabidiol, there is a evidence based study of myriad clinical applications of the oil, such as the treatment of arthritis, epilepsy, PTSD, PMS, anxiety and MS.

Over the years, cannabidiol remained under The Substance Control Act that classified it as a schedule I substance thus deemed illegal over the United States unless accompainied by a special permit. This Act restricted the production, transportation, sale, and utilization of this product for commercial purposes until relatively recently. The stringent legislation made Cannabidiol be in a category of high-risk business that required unique license gateways for processing of credit card payments for those involved in the industry.

The law made it difficult for every merchant payment processing to offer service to such businesses. However, with the introduction of the 2018 Farm Bill (that came into force in 2019), big changes are expected as the Cannabidiol market is seen as the next gold seam.

CBD business has had a huge energy boost with he new legislatin and U.S Cannabidiol sales are expected to hit $22 billion by 2022. That is not part of the 20 billion marijuana market but a market in its own right.

What makes it so easier to reach a much larger audience than Medical marijuana is that no THC (the ‘high’ you get from marijuana) is present, so it is much more readily accepted in more conservative boardrooms. Even Senator Mitch McConnell is an ‘advocate’ (maybe that is a little strong word, but he is not against it). Finding a merchant processor for your online cbd business is now an easy process.

Below is an analysis of some of the companies that provides payment processing gateways for Cannabidiol merchants.

Payment Cloud is a merchant payment account provider with its headquarters in Woodland Hills, California. The company specializes in high-risk business credit card solutions for merchants. With seven years of existence in online business and e-commerce, the company’s website pinpoints what it has been doing in the past years as much as high-risk business is concerned.

The company does not openly display its rates publicly on their website. The services offered by the firm include the provision of online payment gateway, mobile swipers, virtual terminals, and point of sale solution.

Payment Cloud previously offered their services at a rate of 0.39%; however, due to minimal disclosure, the rates currently remain unknown.

No account set up or application fees.

It has a diligent account manager for customers’ support.

The company offers a free credit card terminal with each retail account

They offer payment gateway systems compatible with other third-party gateways

Lacks online transparency in terms of fees and prices

It may require an off-shore account for CBD

PayWize is a California based Cannabidiols merchant services provider that has existed in the market since 2017. PayWize is an affiliate to Payment Depot, which is one of the low-cost merchant processing service providers. The company market to CBD oil merchants and medical marijuana dispensaries. As much as the company charges a flat rate price for processing, this may turn out to be more expensive for merchants processing above $5,000 per month.

Highly compatible with the third party online shopping carts

The company offers month to month billing.

Consistency flat-rate pricing.

Not convenient for businesses processing above $5,000 monthly.

Since the company is new, it has little customer feedback.

The company was formerly known as Pinpoint Intelligence. It is among the most globally recognized credit card payment solutions.

Pinpoint Payments services the traditional online retail sector but also accomodates the more riskier industries such as for Cannabidiol payment processing.  They are not a ‘head’ setup and so they are a great choice.

Besides, Pinpoint Payments uses an advanced automated system that protects the merchant from any form of fraud, which is rife in this high-risk sector.

It has excellent customer support

It has automated fraud tracking and management.

They offer a wide range of merchant services with flexible terms

The company lacks a transparent pricing policy posted online

The automated services are relatively expensive.

It is a Texas-based company with its Headquarters in Austin.  EasyPayDirect has been in the market for over 18years of service. It provides both the low-risk and high-risk merchants' account. Additionally, it is one of the merchant accounts providers that advertises to CBD merchant services. Prices are premium in terms of account set up fees and processing rate.

The company does fall into the short list of companies that post their prices on their website. It charges you a flat processing rate starting from 3.9% plus $0.25 per transaction. Besides, the company will also cost you $29.99 account fees for every month, including EPD gateway.

You will also have to sign a standard contract for three years after which the contract auto-renews for the next year.

With the presence of Load balancing feature, the merchant can access a higher monthly processing limits

High-quality proprietary payment gateways enhance the speed of processing.

No early termination fees

Account set up fee of $99 and operational cost of $29.99

They offer three years contract with automatic renewal for one year.

Expensive for small and starting Cannabidiols business.

eMB is an eMerchant broker founded in 2011 with its headquarters in Los Angeles. eMB is one of the companies that previously advocated for CBD oil industry before the 2018 Farm Bill came into life. Moreover, the company provides a specific high-risk merchant account (at a relatively high cost).

Also, the company is known to educate CBD oil merchants on the nature of high risk and chargeback prevention and management. Besides, the company provides eMB gateway, supports Authorize.Net, and mainly focuses on eCommerce with no credit card terminal.

Even though the company has a good reputation, do not expect to save money. They only advertise 2.99%, which is the lowest available qualified rate but the actual amount you will be subject to is much more due to their tiered program.

Free account set up and application

No yearly fees

Reputable sales practices

Early termination fees

Longterm contract with automatic renewal

High tiered price programs A significant number of customers’ complains

With the recent approval for hemp production, marketing and industrial use on U.S soil, your chances of getting approval for merchant card processing account is even better. Therefore, before you choose the merchant payment processor to work with, find out in details about their tiered pricing. Also, you should find out about the contracts terms, facility fees, and the range of services offered to avoid being locked up in a non-profitable contract for a long time.