Banking For CBD Businesses

While the CBD industry has been legalized in many parts of the United States, among other countries around the world, banking for CBD businesses remains somewhat elusive due to the associated risks. So, if you’d like to find out how to set up a bank account for your CBD business, we have the answer.

Despite the tremendous growth of the CBD industry after the US government took hemp-derived products off the Schedule 1 substances list, commercial banks have been hesitant to provide business solutions for CBD companies. However, a few banks, primarily online, offer services for CBD businesses. 

If you’ve started a CBD business, you’re going to need a bank account that can process transactions, among other essential services. But due to a lot of ambiguity with the legality of CBD product sales, some banks are hesitant to provide services for CBD businesses. 

In this article, we’ll explain why and help you find a CBD-friendly bank. 

Why Banks Aren’t CBD-Friendly

If you’ve started a business selling CBD products, you will be well aware of how difficult it is to comply with the effectively non-existent industry regulations.

The 2018 Farm Bill made many prospective entrepreneurs hopeful that the legal barriers to entering the CBD industry would disappear. However, the progress that has been made since has been glacial at best. This means that strict banking restrictions continued to prevail because individual states were instructed by the US Department of Agriculture (USDA) to develop their own hemp regulatory programs [1]

As a result, a variety of legislative or regulatory issues regarding CBD products have arisen due to vague laws and complications regarding sales between merchants operating in one state and individuals purchasing products in other states.

Because they lack established guidelines, banks providing business services for companies that sell CBD products are hesitant to work with new entrants in this incredibly promising industry due to the perception of higher levels of risk.

Consequently, banks will either refuse to work with any company that sells hemp derivatives like CBD or charge them higher service fees to accommodate the relatively higher risk of doing business.

Due to ambiguities and the blurry lines between what falls under federal and state jurisdiction and what is considered a CBD product for medicinal or recreational use, risk assessments and compliance become tricky to monitor and enforce. 

Some CBD topicals are even considered cosmetics. Many items can be produced from hemp derivatives that may not be considered to fall under the USDA’s jurisdiction. In other words, it is often unclear whether a product is considered to be a hemp-derivative or under another category of commercial goods.

And the United States is just one country. Other regions around the world have entirely different sets of laws and have to abide by different regulatory frameworks.

Which Banks Permit CBD Companies?

Some banks have recognized the potential for growth in the CBD industry and the growing demand for CBD products and have decided to lead the pack while taking on the associated risks [2].

In Europe, the best option for an online CBD business is to get comprehensive business banking options through Electronic Money Institutes (EMIs). These services will allow you to send and receive funds, make wire transfers, SWIFT, and SEPA transactions, and issue debit cards and cash withdrawal services.

 The best part about EMIs in Europe is that CBD businesses have a dedicated International Bank Account Number (IBAN), which allows them to make wire transfers and access currency exchange services efficiently.

However, in the United States, a few traditional banks have decided to accept CBD businesses [2]. Here are 8 CBD-friendly American banks that you can open an account with today:

The good news is that the CBD industry is growing astronomically, and the legislation and regulative frameworks are progressively improving. They will become far more comprehensive in years to come [1].

This means that, as risk profiles for CBD businesses are reduced, more banks will start offering business solutions, such as loans, merchant services, and payments facilities. For now, though, your options are somewhat limited.

How To Set Up Banking For A CBD Business

For most people, the first strategy for setting up a business banking application for a CBD business would be to approach the bank you already belong to. First, reach out to a consultant at your bank and enquire whether they offer services, such as banking, card processing, and other merchant services like payment gateways.

Should your existing bank refuse to serve your new CBD business, you can approach any of the banks listed above (or EMIs) to enlist their services. It is usually best to approach smaller banks with more progressive policies because large banks tend to have a more conservative approach to their policies [3].

Before submitting your application, ensure you comply with several business requirements. For example, your CBD products shouldn’t have a THC concentration above 0.3% to comply with USDA regulations. You also need documented proof of your wholesale purchases and whether they come from legal sources. Beyond this, be sure to have supporting documentation to confirm your business’ registration, your ID, and proof of address [3].

Once you’ve gathered all of the necessary documents to complete your application, you can begin the process and follow the bank’s instructions for the next steps that you need to take[4].


Banking for CBD businesses is difficult because most banks refuse to provide business solutions due to the high-risk profiles of the industry. However, a few small banks are willing to offer CBD business banking solutions. To secure a business account, you will have to ensure you operate within existing regulatory frameworks and provide documentation to support this. As more CBD regulations are developed, banking will become easier for your CBD business.


  1. CBD Retail & E-Commerce Banking Solutions With Fincann | Fincann
  2. 10 Banks That Accept CBD Businesses and Give Loans in 2022 | Profitable Venture
  3. Business Banking for CBD companies | Merchant Advice Service
  4. How to setup banking for a CBD business | Money Gate



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