Online trading and dropshipping have evolved to a point where almost anyone can start an online business from home. CBD products have become a popular item to buy online. Still, due to regional legislative differences, CBD is not always an easy industry to operate in and support is often lacking. PayPal is a popular online payment platform, but does PayPal allow CBD sales?
PayPal does not allow CBD sales at this time. PayPal’s policies prohibit the use of its payment system to accept money for the sale of CBD products. This is mainly due to CBD legislation varying considerably between different regions. But there are other payment options that do allow CBD sales.
Starting an online CBD business can be challenging, which is why it’s essential to know which services you can and cannot use. With the correct information and guidance, selling CBD online is easy to do. Let’s look at some reasons why PayPal’s payment platform does not allow CBD sales, and then find some other systems you can use to sell CBD products online.
Why PayPal Doesn’t Allow CBD Sales
The possession, use, and sale of CBD oils and products have become legal in more and more locations worldwide. For example, in the United States, CBD is already fully legal in ten states, with varying degrees of legality in the other forty states. It is generally accepted that the safest bet for users is to order CBD products online and have them shipped.
The problem is that it’s not always easy to know how to comply with the legal requirements regarding CBD sales. On a single road trip in the US, for example, you may pass through areas where it’s completely legal to buy and sell CBD products. But very quickly, you may pass through a state that forbids CBD sales. That’s why selling CBD products can be challenging.
This problem accelerates when you consider worldwide online payment and sales platforms. Then the issue can become enormous. PayPal, like its sister company eBay, is active in over 200 countries, each with its own CBD legislation and policies. Some of these countries have multiple legislative areas with varying CBD regulations within their borders, which makes selling CBD products even more difficult.
A company like PayPal cannot be expected to have appropriate policies for every region where its services are available. Until the sale of CBD products is more widely approved and legalized, it is simply not practical for PayPal to allow the use of its payment platform for CBD sales.
Another problem is that legislation regarding CBD is still in its infancy, and in some countries, regulations change rapidly. This makes some banks and financial institutions, like PayPal, view CBD as a “high risk” market, even though it’s obviously a lucrative industry. PayPal stays away from industries labeled as “high risk,” and this includes the CBD market.
A further unfortunate fact is that there’s still stigma surrounding CBD despite the fact that it is used in many commercial pharmaceuticals and its health benefits are widely publicized. Many people are still afraid to use CBD, which could cause them to view PayPal in a bad light if the payment platform were to start approving CBD sales on its platform.
Can Anything Be Done to Change PayPal’s Policies?
Public opinion may have some influence regarding CBD sales, and the PayPal Corporation welcomes user feedback on its policies. PayPal even created a web page where anyone can easily share opinions and ask questions about government regulations and public policies, which is available at https://publicpolicy.paypal-corp.com/about-us#contactus.
There are no guarantees, and as mentioned, it will take a lot of effort for PayPal to update its platform to allow CBD sales. But if the company has proof that there’s enough demand for CBD products, it may find that this market is lucrative enough to consider servicing. 
What Alternatives Are There for Online CBD Sales?
Most experts recommend that CBD resellers register a CBD Merchant account to keep their businesses safe. These are accounts that allow you to accept credit card payments to sell CBD products. To register for a CBD Merchant Account, you simply find a payment platform that’s made provisions for CBD sales in its policies. Luckily, there are many to choose from!
USAePay has been around since the late ‘90s and specializes in high-risk merchant accounts, including businesses that sell CBD. When a company has been active for more than two decades, we can assume it knows its business, so this is in USAePay’s favor. This payment platform offers a gateway that’s compatible with most online retail platforms, and card machines are also available for those who want a walk-in shop.
NMI supports a wide range of payment options on a global scale. Users can make payments with credit cards, debit cards, or ACH from many different countries around the world. Transactions cost as little as $0.05 each, which is very affordable compared to some of the company’s competitors. NMI’s reporting systems are also exceptional and offer detailed information about transactions.
PayKings has earned a reputation in high-risk industries as a reliable and well-respected service provider. Specializing in high-risk merchant accounts, including CBD sales, PayKings has many advantages like direct links to more than twenty banks, rates as low as 2.49%, and exceptional integration with most platforms.
Many consider SMB Global the perfect merchant account provider for start-up businesses. Excellent customer service makes it easy for users to get started, and fair rates and contract terms mean you know what you’re getting and how much you’re paying. For larger businesses with offshore accounts, you have to process a minimum of $50,000, which could be a challenge for very young start-up businesses.
Easy Pay Direct
Easy Pay Direct has a longstanding reputation for being one of the biggest names in payment processing for low-risk industries, but its services are now also available for high-risk markets like CBD sales. There’s a setup and monthly account fee, though neither of these fees is exceptionally high, and Easy Pay Direct’s lower transaction fees make up for it. Generally, this is an excellent platform for CBD sales.
Founded in 2017, PayWize is a relatively new company, but it has grown to become one of the CBD industry’s most popular merchant payment processors. It already provides services to a considerable number of CBD oil merchants and medical cannabis dispensaries in the United States. It is compatible with many platforms and offers flat-rate pricing for processing CBD payments.
iPayTotal is ideal for the international market since, though the company is based in the United States, this service is available all around the globe. Unfortunately, a minimum weekly sales requirement of $1,500 could make iPayTotal less than ideal for very young startups, at least initially. But for the international market and businesses outside the US, it’s hard to beat iPayTotal’s offerings. 
Inconsistent legislation is a problem that plagues the CBD industry. It means that you cannot use well-known and reliable platforms like PayPal to sell CBD products. And yet, the CBD industry is booming, and gradually more and more payment providers are opening up their services to the CBD market. Fortunately, there are platforms similar to PayPal that are ready and willing to facilitate CBD sales.
References https://www.quora.com/Why-wont-PayPal-allow-the-sale-of-CBD  https://www.paypal-community.com/t5/General-Discussions/CBD-sales-allowed/td-p/1712319  https://publicpolicy.paypal-corp.com  https://www.bigcommerce.com/articles/selling-cbd-online/cbd-payments/#8-of-the-best-cbd-payment-processors  https://cfah.org/cbd-legal-states/