What is CBD Payment Processor Shopify – How to Sell CBD Products on Shopify

CBD Payment Processor Shopify: What is CBD payment on Shopify?

In recent years, the sale of CBD products has gained significant traction in the eCommerce marketplace. This increased demand has prompted numerous online stores in different countries to start selling CBD products, gradually making them more familiar to the general public.

According to a survey, in 2019, more than 60% of Americans were aware of CBD-related products, and around 64 million American consumers have used CBD products in recent years. Cowen estimates that the American CBD market will surpass $16 billion by 2025, making it a highly lucrative market for businesses. As a result, the Shopify CBD payment processor has become a topic of interest in this blog.

The surge in CBD demand is accompanied by the growing recognition of the various benefits offered by these products, which is attracting more first-time consumers. If you’ve been contemplating launching an online CBD store, now may be the opportune time. Additionally, partnering with a Shopify CBD store can give you a head start. Shopify store development is relatively simple and quick, and you can seek assistance from a professional Shopify eCommerce store design agency. Moreover, due to Shopify’s reputation as a high-performance platform, you can engage a Shopify eCommerce migration company to transfer existing stores to Shopify’s platform.

However, it’s important to bear in mind that entering this market entails significant risks. It operates in a legal “grey area” with uncertain legislation. Violations of ambiguous laws can result in severe consequences, including the closure of your store.

If you’re interested in venturing into this niche market, we provide a brief overview of the CBD market and how you can legally sell CBD through a Shopify store.

Which payment processors are available for CBD businesses on Shopify?

Shopify users in specific US states now have the opportunity to engage in the trade of hemp and CBD products derived from hemp, particularly in states where it is legally permitted. It is important to be mindful of local county laws and regulations pertaining to these items when considering the establishment of a CBD business. Selecting the most suitable Shopify CBD Payment Processor is of utmost importance for CBD merchants utilizing the Shopify platform.

How to start an online CBD Ecommerce Business on Shopify?

If you’re looking to launch an online CBD e-commerce business on Shopify, we can assist you in a fast and efficient manner. With our expertise and experience, we’ll ensure you start off on the right track and avoid common obstacles that could hinder your success.

Our services include helping you select the appropriate Shopify plan for your business, choosing the best themes and apps for your store, optimizing its configuration for maximum conversions, and populating it with high-quality products. Additionally, we offer ongoing support and maintenance to ensure smooth operations of your store.

If you’re interested in starting an online CBD e-commerce business, don’t hesitate to contact us today. We’d be delighted to discuss your specific needs and requirements and develop a customized solution tailored just for you.

Which payment processor does Shopify utilize for CBD products?

Although Shopify Payments does not facilitate payment processing for stores selling CBD products, it does offer third-party payment processors that support transactions specifically for CBD stores. Regrettably, popular payment gateways like PayPal, Stripe, and Square, commonly used by many websites, do not support CBD sales. However, there are a few lesser-known payment gateways that do process such transactions. Here are two notable payment processors that can be utilized for CBD sales.

Which payment gateways does Shopify use?

Shopify processes CBD payments through two unconventional third-party gateways, namely DigiPay and eMerchant Brokers.

DigiPay

DigiPay, a widely used payment processing service, supports CBS sales and seamlessly integrates with Shopify online stores. It is a versatile payment gateway that provides numerous benefits to businesses, such as:

Expedited approval process
Thoroughly reviewed security measures
Comprehensive credit card options
Robust security functionalities

eMerchant Brokers

eMerchant Brokers is another well-liked payment processor for Shopify that accepts CBS sales. This payment gateway has collaborated with Shopify to introduce improved features and streamline CBD payment processing operations. If you’re interested in learning more about how eMerchant Brokers assists CBS sellers through their partnership with Shopify, you can complete the application form.

In addition to these two options, there are other payment processors available that also support CBS sales. However, it is crucial to ensure that the chosen payment gateway meets the following criteria:

Integration with Shopify.
Support for payment processing related to the purchase, sale, and exchange of hemp, CBD, and related items.

Does Shopify allow CBD Products?

Indeed, Shopify permits the sale of CBD products on its platform. As of 2019, Shopify began supporting the selling of hemp and hemp-derived items, including cannabidiol. Presently, Shopify allows the commerce of CBD products and related goods in the United States and Canada.

What is CBD payment gateway UK Shopify & Can I sell CBD products on Shopify UK?

While it is possible to sell CBD and related products online in the UK, they can only be marketed and sold as nutritional supplements. It is not permitted to advertise CBD or related items as medicines or make unsupported medical claims about their health benefits in the UK. Online Shopify stores selling CBD products in the UK must also comply with the country’s regulations regarding food supplements when it comes to advertising.

Additionally, only CBD products derived from hemp strains approved by the European Union with less than 0.2% THC (tetrahydrocannabinol) are allowed. THC is a psychoactive compound classified as a controlled substance in the UK. CBD products sold in the UK should contain only trace amounts of THC (less than 1mg per container) to prevent the extraction of THC, which is a controlled substance.

The nature of the product creates some challenges for Shopify in terms of selling CBD stores. However, Shopify and CBD have formed a successful partnership, making the process of selling CBD oil on Shopify relatively easy. Below are some payment processors that can be used for selling CBD and related products in the UK.

Related: Best Print-On-Demand Sites

How to get a merchant account for my CBD business?

WorldNet:

WorldNet, a well-known payment gateway, has been serving customers across North America and Europe for more than ten years. Recently, WorldNet expanded its services to include payment gateway solutions for online stores that offer CBD and hemp-based products. With its established reputation and reliability, WorldNet offers a secure and comprehensive solution for CBD merchants seeking to sell their products in the UK. The company also supports online payments for subscription-based CBD stores.

NMI:

NMI is a promising payment gateway solution for online CBD stores in the UK. However, understanding the operations of this processor may not be straightforward for all merchants. NMI specializes in payment gateways and collaborates with legal industries. To use NMI, the merchant needs to integrate their bank account with the platform, which connects them to an affiliate company that provides the merchant account for online sellers.

Epay and ClearHaus:

Epay and ClearHaus are two platforms that work together, requiring online sellers to register on both platforms. These platforms operate in close collaboration and enable transactions for online CBD stores.

How to build a CBD store?

Creating an online Shopify store for CBD products is similar to building any other Shopify store, with the exception that you must adhere to various regulations. When establishing a CBD store, there are several important factors to consider:

Implementing an “Age Verification Gate” to ensure that all visitors are above the legal age of 21.
Adhering to design regulations for landing pages, which may also be utilized for advertising on platforms like Google, Facebook, or Instagram.
Integrating a trustworthy and legally compliant payment gateway to facilitate online transactions.
Utilizing a third-party checkout system instead of Shopify’s checkout page, as it does not support transactions for CBD items.
Creating a batch lookup process for CBD orders to comply with specific regulations in certain states or countries.
Establishing customized shipping rules that restrict delivery to states where CBD product sales are prohibited, as well as limiting the type and quantity of products shipped to different states.

What is the best high-risk payment processor for Shopify?

Registering with a credit card processing company can be a challenging task, as each payment processor has its own set of standards and guidelines that must be followed. Therefore, it is crucial to thoroughly research the requirements for opening a Merchant Account with various payment processing companies before making a decision.

When searching for the optimal high-risk payment processor gateway for selling CBD products on Shopify, it is important to ensure that the company has adequate experience in handling such transactions. Additionally, it is essential to understand all the prerequisites for opening Merchant Accounts with high-risk payment processing companies to avoid any potential issues in the future.

Nevertheless, some of the top high-risk payment processors for online Shopify stores that sell CBD or related items are as follows:

WorldNet
Epay and ClearHaus
NMI
eMerchant Brokers
DigiPay

Cannuka – A successful Shopify CBD store Example

Now that we have examined the details and legal aspects involved in establishing an online CBD Shopify store, let’s boost our confidence by providing an outstanding example of a successful Shopify CBD store. Cannuka is a prominent online retailer that offers a wide range of CBD-based health and beauty products, including face creams, body cleansing bars, and eye balms.

The company has created an engaging and interactive homepage that highlights the numerous benefits of their products. They also provide ample educational resources to build trust among visitors and assist them in selecting the most suitable product. The store’s footer includes important links such as shipping information, FAQs, and detailed ingredient lists for each product.

To ensure complete transparency and compliance with regulations, the store explicitly states that their products are not FDA-approved and do not claim to treat any diseases.

In addition to incorporating all the necessary compliance elements, the company has implemented various features to enhance customer satisfaction and increase conversion rates. Each product on offer is accompanied by comprehensive descriptions, usage instructions, ingredient lists, and potential benefits. The store prominently displays customer reviews to enhance customer satisfaction and bolster the brand’s credibility and reliability.

Cannuka’s overarching goal is to foster customer trust through a highly transparent and ethical business model. They provide a dedicated page listing all the ingredients used in their products, offering detailed information about each item available in the store.

Related: Why Is Shopify So Expensive?

How to receive online payments on a CBD store?

To accept online payments for your CBD store, you need to set up a merchant account with a credit card processor that supports CBD businesses. It is essential to research different companies and compare their fees before making a decision. Once you have chosen a processor, you will need to obtain a CBD Merchant Identification Number (MID) from them. This MID will be used by your customers’ banks during the transaction process on your website. Additionally, you will need to obtain an SSL Certificate for your site to ensure the security and confidentiality of your customers’ information when they make purchases on your CBD store.

How to choose a CBD payment processor?

When selecting a payment processor for your CBD business, there are several factors to consider. Firstly, it is important to ensure that the chosen processor is compatible with your CBD products. Secondly, you should take into account the fees associated with the processing service. Additionally, it is crucial to evaluate the user-friendliness and security measures provided by the processor. By considering these factors, you can choose the most suitable CBD payment processor that meets your specific requirements.

Related: Is Shopify Safe and Secure?

Things To Consider When Choosing CBD Dropshipping Shopify

In the health industry, the CBD sector is currently a popular and highly sought-after product, making it a suitable choice for dropshipping in 2022. When selling CBD on Shopify, there are a few key factors to consider in order to ensure long-term success.

CBD Product Quality

The first step is to assess the quality of the CBD products. Utilize online reviews and ratings to gather customer feedback. Visit the supplier’s website and communicate with them via phone or email to determine their reliability. Ordering a sample is an effective way to personally evaluate the product, particularly if you are dealing with Shopify CBD oil. If your location is outside the target market, you may also hire a CBD specialist from platforms like Upwork or other freelancing websites to assess the quality on your behalf.

Legal Compliance of CBD

Ensure that you understand the regulations surrounding the sale of CBD products. For instance, if you are selling in the USA, refer to the FDA website for the latest CBD-related information. Additionally, check if your eCommerce platform allows for the sale of CBD products. Shopify, for example, offers a streamlined process for US merchants.

Shipping and Warehousing

If your CBD products are being shipped from a distant location, there is a possibility that your customers might experience delays. It is important to verify if the company has a domestic production facility or warehouse, particularly if you are selling in the USA, to facilitate smoother transactions with Shopify payments for CBD products.

Types of Dropshipping

There are two methods for dropshipping CBD products. The first is to utilize automated dropshipping services like Spocket, which assist you throughout the entire process, from product import to automated fulfillment. The second method involves manually placing orders and uploading product information for each new order.

Automated dropshipping is typically available for both wholesale and dropshipping suppliers through a provider’s connecting platform. However, if you are working with a private label CBD source, you will need to opt for the second method.

FAQs: How to Sell CBD on Shopify

Can CBD sales be conducted on the Shopify platform?

Yes, CBD sales are supported on Shopify. While the platform itself does not provide payment processing for CBD stores, it can be integrated with third-party payment processors to effectively accept online transactions.

Is it possible to dropship CBD products?

Yes, online merchants can engage in dropshipping CBD products within the US market. However, they need to establish a partnership with a legal supplier of CBD products. It is crucial to find a reputable partner who is authorized to manufacture CBD products and ensure the quality and safety of their products.

Is selling CBD on Shopify profitable?

Yes, selling CBD products on Shopify can be profitable. CBD products are highly sought after in the US market and are expected to experience significant growth in the future. By implementing the right pricing strategy, opening a CBD Shopify store can be a lucrative venture for online merchants.

Is it possible to offer CBD e-commerce subscriptions on Shopify using a third-party payment processor?

Yes, it is possible to provide CBD e-commerce subscriptions on Shopify by utilizing third-party services such as ReCharge. These services enable the creation of a Shopify subscription-based business specifically tailored for CBD products.

For merchants looking to sell CBD products on Shopify in the USA, there are several important considerations to keep in mind:

Implement an “Age Verification Gate” to ensure that all visitors are above the legal age of 21.
Comply with the design regulations for landing pages, which may also be used for advertising on platforms like Google, Facebook, or Instagram.
Integrate a reliable and legally compliant payment gateway to accept online transactions.
Utilize a third-party checkout system to replace Shopify’s checkout page, as it does not support transactions for CBD items.
Establish a batch lookup process for CBD orders to comply with applicable regulations in certain states or countries.
Set up custom shipping rules, such as limiting delivery to states that do not allow CBD product sales or restricting the types and quantities of products shipped to different states.

How should I price CBD products on my Shopify store?

CBD products have high demand, allowing for potential profitability with the right pricing strategy. As a startup, you may consider initially setting lower prices to attract more customers. With quality products and as your business grows, you can adjust prices over time to improve profit margins.

Do you provide maintenance services for CBD Shopify stores?

Yes, at Folio3, we offer reliable and consistent maintenance services for CBD Shopify stores. We also provide services such as Shopify app development and integration, assisting CBD merchants in smoothly launching and managing their online businesses.

What are the things to consider when planning to sell CBD products on Shopify for a US-based merchant?

For merchants looking to sell CBD products on Shopify in the USA, there are several important considerations to keep in mind:

Implement an “Age Verification Gate” to ensure that all visitors are above the legal age of 21.
Comply with the design regulations for landing pages, which may also be used for advertising on platforms like Google, Facebook, or Instagram.
Integrate a reliable and legally compliant payment gateway to accept online transactions.
Utilize a third-party checkout system to replace Shopify’s checkout page, as it does not support transactions for CBD items.
Establish a batch lookup process for CBD orders to comply with applicable regulations in certain states or countries.
Set up custom shipping rules, such as limiting delivery to states that do not allow CBD product sales or restricting the types and quantities of products shipped to different states.

How should I price CBD products on my Shopify store?

Do you provide maintenance services for CBD Shopify stores?

What credit card processors accept CBD transactions?

Most credit card processors accept CBD transactions as long as the merchant can provide proof that the product is legal in their jurisdiction. Merchants typically need to submit a CBD product label or a certificate of analysis from a third-party testing laboratory. While some processors may have stricter requirements and may request additional documentation, it is advisable to communicate with the processor beforehand to ensure a smooth transaction process.

Which payment processors does Shopify use?

Shopify uses different payment processors depending on the country where the transaction occurs. In the United States, Stripe is the payment processor utilized by Shopify. Stripe is a reputable provider widely used by major online retailers. In Canada, Braintree, a subsidiary of PayPal, is the chosen payment processor. In other countries, Shopify employs various processors, including Adyen, WorldPay, and Amazon Payments.

How can I obtain a CBD merchant account?

To acquire a CBD merchant account, follow these simple steps. Begin by finding a reputable merchant account provider that offers CBD merchant accounts. Collect the necessary documentation, such as your business license and tax ID number. Complete the application for a CBD merchant account using the provided documentation. Once your application is approved, you can start processing credit and debit card payments for your CBD products.

Is it easy to sell CBD on Shopify?

Yes, selling CBD on Shopify is relatively easy. Shopify simplifies the process of launching and managing your own online store, even in a regulated industry like CBD. You do not need coding or development skills to get started. However, it is essential to research and understand the laws and regulations surrounding CBD sales to ensure compliance with Shopify’s policies and avoid any legal issues.

Can CBD products be sold on Shopify?

Yes, CBD products can be sold on Shopify. In 2019, Shopify officially allowed the sale of hemp and hemp-derived products, including CBD. The platform currently supports the exchange, purchase, and sale of CBD and related goods in the United States and Canada. As a CBD merchant on Shopify, it is crucial to conduct thorough research and familiarize yourself with the specific guidelines and regulations governing CBD sales to ensure your business remains compliant and avoids any potential legal complications.