The overall situation regarding online CBD sales has improved drastically in the last few years. However, processing payments on Shopify or similar platforms is not the simplest process for the owners of online CBD stores. This is due to the legislation surrounding these high-risk products. Thankfully, several third-party payment processors such as DigiPay make things easier for online CBD shop owners.
Digipay is a third-party payment processor that can assist CBD businesses – whether online or retail – to process payments and provide customer analytics and risk management. Digipay is fully integrated with Shopify to ensure ease of use for CBD businesses and assist with other business aspects.
Many difficulties come with running a business that sells CBD-based products, and payment processing shouldn’t be one of them. Things can be made a little easier with Digipay and a handful of other third-party payment processors. This will make the payment-processing aspect of your CBD business far simpler to manage.
Digipay CBD
The sale of CBD products is still seen as a high-risk business despite the changes in the legal sphere. Resultantly, Shopify’s own integrated payment system does not yet allow for the processing of payments for CBD and Hemp products.
This is despite the 2018 Farm Bill where hemp cultivation was finally legalized. The reason for this is that the sale of CBD-related products is still currently seen as a high-risk business. While the regulations and guidelines are still evolving, it remains a slow process.
This is why you will need to incorporate the use of a third-party payment processor
in order to successfully run a business selling CBD products. Digipay – or another similar platform such as that – will assist where Shopify cannot, allowing you to process the payments of most CBD products.
Digipay is now integrated completely with Shopify in order to support the processing of payments for CBD products. Digipay not only offers third-party payment processing for this specialty type of business but simultaneously offers risk management and other services.
Some of the other services offered by Digipay to CBD business owners include customer analytics. They also oversee that business owners are able to remain within regulations at all times.
The staff at DigiPay understand the difficulties associated with running a CBD-related business. Due to this, they have equipped themselves to offer the right guidance throughout the entire process of setting up the business. This will help establish the best solution for your specific business needs.
Whether you are selling wholesale hemp CBD, topical lotions, hair products, ingestibles, vape oils, edibles, or ingestible supplements, DigiPay is equipped to help you. Depending on the products, DigiPay can offer underwriting services between three and fourteen days, a full credit card suite, as well as fast-track approval.
The costs associated with underwriting from Digipay will depend on the business itself and the extent of the services required. Some of the factors influencing pricing will include the business model, current financials of the business, the length of time in business, and the current processing history. [3]
CBD Payment Processors
The 2018 Farm Bill went into effect on January 1, 2019, effectively removing the prohibitions that had previously been put on the selling of CBD products over the internet. Only CBD products generated from hemp plants are covered by this verdict. THC-containing goods are still subject to rigorous regulations. [4]
Federal law prohibits banks from accepting funds related to the marijuana industry. Resultantly, finding a bank that will accept payments for CBD products might be challenging. As a result of this, online payment processors are also wary.
CBD payments will not be processed using Shopify Payments, Shopify’s in-house payment processor. The same can be said for PayPal, leaving CBD business owners with few options. [2]
You’ll need to use an external payment provider that can interact with Shopify to process payments for your CBD products. These payment gateways will provide the high-risk account required to accept CBD product payments, assuming they are supported by Shopify.
Despite the difficulties associated with running a CBD business and obtaining all the legal permissions associated with this type of business, companies such as DigiPay exist to assist business owners and clients alike in order to help create a smooth process for these high-risk CBD transactions.
Shopify’s normal payment infrastructure does not yet support the processing of payments for CBD-related products. However, the high-risk accounts required for these transaction types can be obtained by using a third-party payment processor such as DigiPay and eMerchantBrokers.
eMerchantBroker
eMerchantBroker is another payment processor not entirely dissimilar to DigiPay. This service assists business owners specializing in high-risk business such as selling CBD products.
eMerchantBroker is considered one of the top payment processors for any business owner operating in the high-risk e-commerce space.
Because they specialize in high-risk business types, they are able to offer the expertise needed to CBD business owners across all aspects. This includes payment processing and chargeback protection, with full integration across most online payment services and cryptocurrencies. [5]
Legalities Around CBD Online Sales
You’ll need to file an “Attestation for the Sale of Hemp and Hemp-derived Products” before you may sell CBD products online. This verifies that you are aware of all of Shopify’s criteria and that you will adhere to them at all times while conducting online business. [1]
Because the rules surrounding CBD products are continually changing, you’ll be best advised by consulting a legal specialist before proceeding with any sales. Make sure that you’re up to speed on local, state, and federal legislation and that you’re informed of any FDA updates (Food & Drug Administration). [1]
Conclusion
Through the assistance of the above payment processors, you will ensure that you can conduct business for your CBD company with ease while remaining safe. However, it is your responsibility to stay current with regard to changing legislation regarding the sale and distribution of CBD products.
Online store hosts will not be held liable for this, so it is up to you as the business owner to comply with all CBD regulations. [1]
Sources
[1] https://help.shopify.com/en/manual/your-account/legal/hemp#:~:text=You%20can%20sell%20hemp%20or,9%2C%20and%20delta%2D10 [2] https://help.shopify.com/en/manual/products/cbd-products [3] https://digipayinc.com/digipay-cbd/ [4] https://squareup.com/us/en/townsquare/sell-cbd-products-square [5] https://www.cardpaymentoptions.com/credit-card-processors/emerchantbroker-com/
