PayPal is one of the most widely used payment systems. But does this well-known brand accept CBD payments?
Unfortunately, PayPal does not facilitate payments for cannabis-derived products. The policies of PayPal state unequivocally that the platform cannot be used to accept payments for CBD purchases.
While this is most likely due to the varying legislation around the world, there are merchant account providers who will work with CBD merchants.
PayPal's CBD policy is simple: don't try to sell it or accept payments using your PayPal account. It doesn't get any clearer than that.
While you may have seen the odd retailer using PayPal, it won't last forever. We have heard so many horror stories over the past few years of people having their accounts banned and money frozen. It's just not worth the risk.
Although many discussions have probably taken place, there is no guarantee that PayPal will ever change its current policies. That is yet to be determined. As of now, it would be difficult for the payments giant to abandon its high-risk business clause and suddenly begin accepting payments for CBD products.
Square currently allows CBD Program sellers in most US states to accept payments for hemp and hemp-derived CBD products containing less than or equal to 0.3% THC. If you sell CBD products such as oil, flower, seeds, lotions, topicals, wax, and so on, your company must participate in their CBD Program.
Hemp flower is permitted only if lab certification confirming the THC level and ingredients are provided.
These products must be manufactured and sold in accordance with applicable law, which includes, but is not limited to, the 2018 Farm Bill and relevant state laws.
Square prohibits sellers from selling marijuana, marijuana-derived products, products containing more than 0.3% THC, illegal drugs, or products that otherwise violate Square's Payment Terms (e.g. kratom, kava, paraphernalia, bongs, pipes, etc).
CBD oil brands that want to start accepting payments for their goods will most likely run into difficulties when trying to connect with payment companies to help them do so. Payment companies will label CBD companies as "high-risk," and may refuse to provide services to CBD companies or charge exorbitant fees for payment processing.
There are several reasons for this.
To begin, CBD is a new market in which businesses must navigate a minefield of legislation to ensure that their products are legal to sell. Second, because CBD has obvious links to illegal cannabis, certain payment companies perceive reputational risks associated with CBD merchant acceptance.
In addition to the effort required to break into an already crowded health market, CBD start-ups may find the uncompromising attitude of certain payment providers to be fatal to their chances of getting off the ground and driving the success of their business.
Cryptocurrency does have its uses, and people are using it to purchase CBD products. That said, there is a large population that cannot adopt its use, so your market may be limited in comparison to those using debit and credit cards.
As a company that strives to keep current with business-related technology, wecann identifies the growing demand for decentralized-based currencies, such as Bitcoin and Ethereum.
However, we also understand that navigating blockchain technology can be a daunting task. And so, wecann has partnered with a leading crypto-payment solution, with simplicity in mind.
Our payment solution allows our clients to accept crypto payments, with payouts in your local currency.
We can offer a seamless integration that gives you the power to accept digital currency payments; there are no chargebacks. All sales are final and recorded on an immutable ledger.