CBD Merchant Accounts: Do You Qualify?

Dec 28, 2017

New domestic CBD merchant accounts


Better rates, better service and rapid payouts. 

That’s right – the new year is bringing a new domestic bank into the mix for CBD merchant accounts.  Unlike many of the banks that service the industry (admittedly, there are not that many), we are starting to onboard clients with a US bank that has years of experience in high risk merchant transaction processing and has decided to start working with the industry.   These accounts are restricted to US entities only at this time. 

What does that mean for business?

In a nutshell it means that the rates, minimum volume, payout times, and transparency factor should make CBD business owners jump for joy.  It’s been rare, to date, that we’ve found financial institutions with high risk backgrounds who are willing to work with anyone in the industry, and frankly, the industry needs their experience.  

Who can apply?

Online stores, brick and mortar retailers, and wholesale accounts are able to apply.  All product sold must be within the .3% allowable range, and origin of CBD materials must be disclosed.  In addition to the usual KYC and BSA documentation, product package labeling and ingredients list submission is required for pre-approval; this does not guarantee final approval.  

What’s the bank account situation?

Currently you must have a bank account that can receive settlement.  As always, we are working with financial institutions to create deposit account availability for our clients, and as usual, most credit unions and banks that are willing to work with the industry are not interested in working with smaller volume depositors.   

One point we want to be clear about is that these CBD merchant accounts are bank issued MIDs – this is not an aggregated, shared, or third party, type of account. 

If you have any account closures in the past, please disclose them on your initial application.  Certain types of account closures count against you more than others, but failing to disclose this information constitutes a fraudulent application and can cause your account to be terminated after activation. 

What are the rates and fees?

Smaller volume accounts can expect rates to be less than 5%; per transaction fees are likely to be less than .35, not including gateway charges and fees.  Multiple gateway options are available, and we have options with WordPress/WooCommerce plugins or simple API connections.  Back office reporting in real time is a feature of all available gateways; some have better reporting than others. 

Higher volume accounts will receive volume based discounts.

How long does it take to get set up and running?

Once your application and supporting documents are complete, you should expect approximately one week for bank approval time; we do not control their compliance reviews and this is an estimate.  Gateway setup normally takes 2-3 business days if your tech person is available to do the integration.  Delivery of POS terminals or dongles may take up to a week, and this is a gateway specific item that is beyond our control.  

How often are payouts made?

Net payouts are made each business day,  and bank fees, reserves, gateway charges, etc are all subtracted prior to settlement.  There is no real hold on the funds, so a sale made today would result in a payment tomorrow – provided tomorrow is a business day.  For sales made on weekends or holidays, the next business day will see the settlement. 

Because payouts are rapid, reserve is 10% rolling, for 180 days.   This is non-negotiable. 

Is there an application fee?

There is no application fee, but there will be an activation fee of $625 per account for successful CBD merchant account applications.   Gateway charges for integration and onboarding are separate. 

How can I get my application started?

This part is easy. 

1.  Fill out the more information form located here.   We normally respond within one business day.  If you have questions, you can always give us a call – 925 400 8077. 

2.  Start gathering up the supporting documents, since we cannot submit applications without the complete list or explanations in lieu of specific items.  Here is a link to the list of required documents for all accounts.   

3.  Additional information needed for CBD merchant account application processing includes:

  • images and/or schematics of all product packaging
  • ingredients list
  • disclosure for source of CBD used in product manufacturing
  • summary of manufacturing, distribution and shipping locations


That pretty much sums it up.  Once we have the completed application packet, it’s up to the bank. 



  • We are in no way guaranteeing that you will be approved, the bank will make that determination based on your application, supporting documents and what their compliance review team finds. 
  • Rates are provisional for the first 90 days and may be adjusted based on actual volume versus stated volume.  
  • Laws could change, bank policy or available cap space could change.  One of us could get hit by a bus.  All that good stuff.  By now, you’re probably used to the song and dance, but we have to say it to you again.  And again.  And probably one or two more times before you are up and running.  Sorry.