Key Highlights for CBD Merchants on Shopify

• Shopify Payments is Stripe, and Stripe doesn’t allow CBD.
• PayFacs like Stripe, PayPal, and Square can shut down CBD merchants without warning.
• To sell CBD on Shopify, you need a CBD merchant account plus a Shopify-compatible payment gateway.
• Gateways like Authorize.Net and NMI connect your Shopify store to your approved CBD merchant account.
• Many traditional payment processors won’t board the sale of hemp or the sale of CBD, so choosing the right payment gateway and Shopify CBD payment processor matters.
• Many CBD merchants lose 30–60% of revenue when PayFacs freeze payouts without notice.
• VERIFIED Credit Card Processing helps CBD businesses secure approval, integrate with Shopify, and protect their ability to accept payments.

Why Shopify Payments Won’t Work for CBD

Shopify allows merchants to sell hemp and hemp-derived CBD products, but not with its built-in Shopify Payments. Shopify Payments is Stripe, and Stripe prohibits CBD transactions. According to Shopify’s acceptable use policy, sellers of hemp-derived CBD products must use an alternative payment method. Put simply, Shopify Payments doesn’t support CBD, so you must connect a third-party payment gateway and a processor for your Shopify store.

If you try to sell CBD on Shopify with Shopify Payments, you risk:

• Frozen payouts
• Immediate account termination
• Placement on shared industry watchlists

This problem isn’t unique to Stripe. PayPal and Square also reject CBD because they’re PayFacs (payment facilitators).

What’s a PayFac?

A PayFac groups thousands of merchants under one giant account. It’s fast to set up, but risky for industries like CBD. If the PayFac decides CBD is “too risky,” every CBD merchant is terminated at once — regardless of compliance. That’s why high-risk payment processing with a dedicated CBD merchant account is the solution that keeps your payments online stable.

That’s why CBD merchants need a dedicated CBD merchant account paired with a Shopify-compatible payment gateway like Authorize.Net or NMI. These are payment processors compatible with Shopify via gateway integration and are a reliable payment solution for CBD products online.

Compliance Checklist: What You Need Before Applying

CBD payment processors require stricter documentation than traditional processors. Having everything ready reduces delays and improves merchant account and payment approval odds.

• Certificates of Analysis (COAs): Lab reports proving hemp-derived CBD products contain less than 0.3% THC. Outdated or missing COAs are a top reason for rejection.
• Business licenses: Proper state and local licenses. Some states treat CBD like food or supplements, while others require separate permits for hemp products and hemp-derived products.
• Compliant website copy: No unverified medical claims. Clear refund, shipping, and return policies are essential for products on Shopify.
• Age verification: Depending on CBD laws in your state, you may need an 18+ or 21+ age gate on your Shopify CBD store.
• Terms & policies: Privacy policies and disclaimers that explicitly mention CBD and hemp derived CBD to meet payment solutions requirements.

Need help gathering compliance documents or want to start your CBD merchant account application? VERIFIED Credit Card Processing offers free consultations for Shopify CBD merchants. Apply today.

Common CBD Merchant Account Rejection Reasons

• Website makes medical claims about CBD oil, gummies, or topicals.
• COAs are expired or missing from product listings.
• Prior applications through Stripe, PayPal, or Square resulted in high-risk flags.
• Catalog includes restricted items (e.g., vape cartridges or THC products over 0.3%).

Working with an experienced CBD payment processor like VERIFIED reduces these risks because underwriters know exactly what to look for in the CBD market.

Merchant Account vs. Payment Gateway

To sell CBD on Shopify, you need two pieces:

1. CBD Merchant Account – The account that actually processes your CBD sales.
2. Payment Gateway – The connector that securely transmits data between Shopify checkout and your merchant account.

Authorize.Net and NMI are gateways, not processors. They don’t approve you directly. Instead, once you’re approved for a CBD merchant account, these gateways let you plug it into your Shopify store. This is the right payment architecture for a Shopify CBD payment processor setup.

Think of it like this: the merchant account is the bank, the gateway is the bridge, and Shopify is your storefront. Without all three, payments don’t flow.

Best Shopify-Compatible CBD Gateways

Authorize.Net

• Industry-standard gateway trusted for decades
• Built-in support in Shopify and compatible with Shopify for CBD online
• Handles credit card processing, recurring billing, and fraud filters
• Authorize.net Official integration guide

NMI (Network Merchants, Inc.)

• Designed for high-risk payment processing in high-risk industries like CBD
• Works with multiple processors, giving redundancy and payment options
• Supports credit card payments, ACH, and alternative methods
• NMI Official integration guide

Both gateways are third-party payment processors by integration (not the underwriter) and act as organic payment gateways to help you accept credit and accept credit card payments from customers buying CBD products online.

Step-by-Step: How to Sell CBD on Shopify

1. Apply for a CBD Merchant Account
   Provide COAs, licenses, business formation docs, and policies. Approval usually takes 5–10 business days.
2. Choose Your Gateway
   Authorize.Net or NMI depending on processor setup and the right payment gateway for your needs.
3. Integrate with Shopify
   Go to Settings → Payments → Third-Party Providers. Select your gateway and enter your credentials.
4. Test Transactions
   Run test purchases with multiple cards, confirm payouts, and test refunds and error messages.
5. Launch Live Payments
   Enable live mode and start processing real CBD transactions; now you’re able to sell hemp products and CBD products on Shopify.

At VERIFIED when you apply we will get you setup with the merchant account and your gateway of choice so you can accept payments for your CBD products quickly.

Testing and Launch

• Verify settlement timelines (most CBD processors pay out in 1–3 business days).
• Test mobile checkout flows — most CBD buyers shop on mobile.
• Confirm error handling for failed transactions is clear and professional.
• Run refund tests so customers feel confident about post-purchase support.

Optimizing Your Shopify CBD Checkout

• Offer multiple payment options: credit cards, ACH/eCheck, and alternative payment methods from third-party payment processors.
• Consider dual pricing/cash discounting. VERIFIED may be able to help you implement fee-free processing.
• Keep checkout friction-free: enable guest checkout, limit form fields, and optimize for mobile.
• Display trust badges: SSL, PCI compliance, and gateway logos (Authorize.Net / NMI) for a secure payment experience.

Building Trust & Increasing CBD Sales Conversions

• Add disclaimers: “All products are hemp-derived CBD and contain less than 0.3% THC.”
• Use clear product pages with COA links and shipping/return policies across your Shopify website.
• Set up abandoned cart emails and post-purchase follow-ups to boost payments online and repeat purchases.

State-by-State Considerations

Even though the 2018 Farm Bill legalized hemp-derived CBD at the federal level, state laws vary widely. Some states restrict edible CBD products, others limit shipping, and a few ban certain hemp-derived CBD products entirely.

A knowledgeable CBD payment processor will help you configure your Shopify store to block orders from restricted states, keeping your business compliant with the sale of hemp and the sale of CBD.

Optional: LegitScript Certification for CBD Merchants

While not required to accept CBD payments on Shopify, some merchants choose to take the extra step of getting LegitScript CBD Certification. This certification demonstrates your commitment to compliance and can unlock powerful advertising opportunities.

Why consider LegitScript?

• Discounted Certification with VERIFIED: As a VERIFIED Credit Card Processing client, you can access discounted LegitScript application fees and expedited review.
• Unlock Paid Ads: Certification allows CBD merchants to advertise on platforms like Meta (Facebook/Instagram) and Google Ads, which normally block CBD campaigns.
• Faster Approvals: Expedited LegitScript processing helps you start advertising and scaling sooner.
• Compliance Advantage: Certification reassures banks, payment processors, and customers that your CBD store meets strict regulatory standards.

This option isn’t mandatory for every CBD business, but for merchants who want to aggressively market and grow their Shopify CBD store through paid advertising, LegitScript certification can provide a strong competitive edge.

Why Work with VERIFIED Credit Card Processing?

VERIFIED Credit Card Processing specializes in high-risk payment processing, including CBD.

• CBD merchant accounts with high approval rates
• Shopify integrations via Authorize.Net and NMI
• Processor redundancy to keep your payments flowing
• Fraud protection and chargeback monitoring
• Dedicated account managers who understand CBD laws and Shopify policies (we actually have worked as cannapreneurs ourselves)

While CBD payment processing typically costs 4–6% due to high-risk classification, VERIFIED helps merchants compare rates across multiple CBD-friendly processors to find competitive pricing and the right payment solutions.

Launch Your Shopify CBD Store with Confidence

If you want to sell CBD on Shopify, you can’t rely on Stripe, PayPal, or Square. You need a CBD merchant account and a Shopify-compatible gateway like Authorize.Net or NMI. This is the shopify cbd payment processor blueprint that keeps payments for your CBD products consistent.

At VERIFIED Credit Card Processing, we make that process seamless. From compliance support to gateway integration, we provide the tools CBD merchants need for stable, high-risk payment processing.

Start your no commitment application and launch your Shopify CBD store with confidence. If you’re looking for Shopify and CBD guidance end-to-end, VERIFIED has a solution compatible with Shopify for your CBD.