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    Last Updated | May 16, 2022

    Overview Shopify CBD Payments: What is CBD payment on Shopify?

    In the past few years, CBS selling has become big in the ecommerce marketplace. The increased demand has also led hundreds of online stores to start selling CBD products online in various countries; thereby, gradually making them familiar products for the average person.

    According to one survey, over 60% of Americans knew about CBD-related products in 2019, and over 64 million American consumers have used CBD products in the last couple of years. According to an estimate by Cowen, the American market for CBD is expected to reach over USD 16 billion by 2025, making it one of the high potential markets for businesses.

    The boom in CBD demand is followed by various benefits of the products which are continuously recognized by experts. This is also leading to more first-time consumers trying their hands on CBD. So, if you have been waiting to launch an online CBD store; perhaps it’s the best time. Also, you can gain a head-start by getting along with a Shopify CBD store. That’s because Shopify store development is much easier and faster, plus you can always get in touch with a Shopify eCommerce store design agency to get things done professionally for your store. Also, since Shopify is known as a high-performance platform, you can always hire a Shopify eCommerce migration company to migrate existing stores onto Shopify’s platform.

    Nonetheless, before you enter into this market it’s important to remember that it’s a high-risk business. You can say it as a legal “grey area” with ambiguous legislation. Any violation of unclear laws can lead to serious consequences; including shutting down the store.

    Well, if you are looking to enter this very niche market, below we have given you a brief overview of the CBD market and how you can sell CBD through the Shopify store legally.

    How to start an online CBD Ecommerce Business on Shopify by Folio3

    Folio3 is a Shopify Partner and we can help you start your online CBD Ecommerce Business quickly and efficiently. We have the experience and expertise to help you get started on the right foot and avoid the common pitfalls that can hamper your success.

    We will help you choose the right Shopify plan for your business, select the best Shopify themes and apps, configure your store for optimal conversions, and load it with high-quality products. In addition, we will provide ongoing support and maintenance to keep your store running smoothly.

    If you are interested in starting an online CBD Ecommerce Business, please contact us today. We will be happy to discuss your specific needs and requirements and develop a tailor-made solution for you.

    What payment processor does Shopify use for CBD products?

    While Shopify Payments doesn’t support the payment processing for stores selling CBD products, it does have third-party payment processors that support transactions for CBD stores. Unfortunately, the major payment gateways like PayPal, Stripe, and Square which are used by the majority of sites don’t support CBD sales, some uncommon gateways do process the same. Here are two prominent payment processors that can be used for CBD sales.

    What payment gateway does Shopify use

    1. DigiPay

    DigiPay is a popular payment processor that accepts CBS sales and can easily be integrated with Shopify stores. It’s a highly flexible payment gateway that offers various features to businesses including;

    • Fast track approvals
    • Vetted security
    • Complete credit card suite
    • Powerful security features
    1. eMerchant Brokers

    eMerchant Brokers is the other popular Shopify payment processor that accepts CBS sales. The payment gateway has partnered with Shopify to bring in better features and more streamlined operations for CBD payment processing. You can know more about how eMerchant Brokers is working with Shopify to help CBS sellers, you can fill in the application form.

    Apart from these two, there are other payment processors as well that support CBS sales. However, just make sure that the payment gateway you choose must:

    • Integrate with Shopify
    • Support payment processing for purchase, selling, and exchanging hemp, CBD, and related items.

    Does Shopify allow CBD products?

    Yes, Shopify does allow selling CBD products online.

    Shopify started supporting sales of hemp and hemp-derived products like cannabidiol back in 2019. Currently, the store does support the sale, purchase, and exchange of CBD and related items in the US and Canada.

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

    While you can sell CBD and related items online in the UK, however, these can only be sold as nutritional supplements. This means any marketing and selling of CBD or related products as medicines or making unsubstantiated medical health claims for such products is not allowed in the UK. Also, online Shopify stores selling CBD products in the UK need to abide by the food supplement regulations that are in place in the UK for advertisement purposes.

    Also, only CBD products derived from EU-approved strain of the hemp plant with < 0.2% THC. Tetrahydrocannabinol (THC) is a psychoactive compound and comes under controlled substances in the UK. Also, CBD products sold in the UK should have only trace amounts of THC (< 1mg per container). This is to ensure that the product can’t be used to extract THC (a controlled substance).

    Below are some of the payment processors that can be used to sell CBD and related items in the UK;

    How to get a merchant account for my CBD business?

    –         WorldNet

    WorldNet is a popular payment gateway that is widely used across North America and Europe for over a decade. Now, WorldNet is also offering payment gateway solutions to online stores offering CBD and Hemp-based products. As a highly established and reputed company, this WorldNet provides a safe, comprehensive, and reliable solution to CBD merchants looking to sell their products in the UK. The company also supports online payments for subscription-based CBD stores.

    –         NMI

    NMI is one of the most promising payment gateway solutions for online CBD stores in the UK, however, the operations of the processor may not be easy to understand for all merchants. It’s a specialist payment gateway that works with all legal industries. Here the merchant has to integrate his Bank Account with the NMI, which connects the merchant with the affiliate company, which subsequently provides the Merchant Account for online sellers.

    –         Epay and ClearHaus

    These two platforms work in conjunction with each other and online sellers need to register on platforms. Epay and ClearHaus work in close collaboration and allows transactions for online CBD stores.

    How to build a CBD store?

    Building a CBD online Shopify store is much similar to building any other Shopify store; except that you have to stay compliant with various regulations. Some of the important considerations you have to follow when building a CBD store include;

    • Adding “Age Verification Gate” to ensure that all visitors are over the age of 21
    • Complying with the designing regulations of landing pages, which you may also use for ads on social media platforms like Google, Facebook, or Instagram
    • Integrating a reliable and legal payment gateway to accept online transactions
    • Integrating a third-party checkout system to replace Shopify’s checkout page (since it doesn’t support transactions for CBD items)
    • Creating batch look-up process for CBD orders to comply with regulations that may be applicable in certain states/countries
    • Setting up custom shipping rules (limiting delivery to certain states that doesn’t allow CBD products sales, limiting the type and quantity of products delivered to different states)

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

    Registering with a credit card processing company is a difficult task since all different payment processors have individual standards and guidelines which are required to be followed. Thereby, it’s important to research the requirements for opening Merchant Account with different payment processing companies before going with one.

    When you are looking for the best high-risk payment processor gateway for Shopify to sell CBD products, make sure the company has the right experience in dealing with such transactions. Also, make sure you understand all the requirements for opening Merchant Accounts with high-risk payment processing companies, to avoid any problem down the line.

    Nonetheless, some of the best high-risk payment processors for online Shopify stores selling CBD or related items include;

    • WorldNet
    • Epay and ClearHaus
    • NMI
    • eMerchant Brokers
    • DigiPay

    Cannuka – A successful Shopify CBD store Example

    Well, now that we have gone through the various details and legalities involved in opening a CBD Shopify store online, let’s take a breath of confidence by giving you a shining example of a successful Shopify CBD store. Cannuka is one of the leading online stores offering CBD-based health and beauty products including face creams, body cleansing bars, eye balms, and others.

    The company has designed a vivid and interactive home page highlighting the various benefits of products being offered. Also, there’s a lot of educational material available to help build the trust of visitors and assist them in choosing the best product. The footer of the store contains all the important links including shipping information, FAQs, and various ingredients used in different products.

    To ensure complete transparency and compliance with all the regulations, the store has clearly mentioned that their products are not approved by the FDA, and thereby, may not treat any diseases.

    Apart from adding all the right compliance elements, the company has also added various useful elements to improve customer satisfaction and increase conversion rates. All products offered at the store come with detailed product descriptions, uses, ingredients, and potential benefits. The store also boldly displays customer reviews to improve customer satisfaction and increase the quality and reliability of the brand.

    The whole concept of Cannuka is to build customers’ trust by keeping a highly transparent and ethical working model. They clearly listed all the ingredients used in various products on a dedicated page that give detailed information about every product being offered by the store.

    How to receive online payments on a CBD store?

    In order to receive online payments on your CBD store, you will need to set up a merchant account with a credit card processor that supports CBD businesses. There are a few different options available, so be sure to research the various companies and compare their fees before making a decision. Once you have selected a processor, you will need to obtain a CBD Merchant Identification Number (MID) from them. This MID will be used by your customers’ banks when they process transactions on your site. In addition, you will also need to acquire a SSL Certificate for your site. This certificate will ensure that all of your customers’ information is safe and secure when they make purchases on your CBD store.

    How to choose a CBD payment processor?

    When it comes to choosing a CBD payment processor, there are a few things you’ll want to keep in mind. First, you’ll want to make sure that the processor you choose is compatible with your CBD product. You’ll also want to consider the fees associated with the processing service. Additionally, you’ll want to think about how easy it is to use the processor and how secure it is. By keeping these factors in mind, you’ll be able to choose the best CBD payment processor for your needs.

    FAQ About How to Sell CBD on Shopify

    Does Shopify support CBD sales?

    Yes, Shopify does support CBD sales. While the platform doesn’t support payment processing for CBD stores, it can be integrated with third-party payment processors to successfully accepts online transactions.

    Is it possible to dropship CBD products?

    Yes. Online merchants can start dropshipping CBD products in the US market. However, they will have to find a legal supplier of CBD products to partner with. It’s important to find the right partner which is legally authorized to manufacture CBD products. Also, you need to ensure the quality and safety concerns of the supplier’s products.

    Is selling CBD profitable on Shopify?

    Yes. CBD products are in high demand across the USA and are expected to grow at exponential rates in the future. With the right pricing strategy, opening a CBD Shopify store can be highly profitable for online merchants.

    Is there any way to offer CBD e-commerce subscriptions on Shopify with a third-party payment processor?

    Yes. You can use third-party services called ReCharge to build a Shopify Subscription-based business for CBD products.

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

    Some important considerations for merchants looking to sell CBD products on Shopify in the USA include;

    • Adding “Age Verification Gate” to ensure that all visitors are over the age of 21
    • Complying with the designing regulations of landing pages, which you may also use for ads on social media platforms like Google, Facebook, or Instagram
    • Integrating a reliable and legal payment gateway to accept online transactions
    • Integrating a third-party checkout system to replace Shopify’s checkout page (since it doesn’t support transactions for CBD items)
    • Creating batch look-up process for CBD orders to comply with regulations that may be applicable in certain states/countries
    • Setting up custom shipping rules (limiting delivery to certain states that doesn’t allow CBD products sales, limiting the type and quantity of products delivered to different states)

    How do I price CBD products on Shopify store?

    CBD products are in high demand and thereby, you can make big profits by implementing the right pricing strategy. As a startup, you may want to keep the pricing lower in the beginning to gain more customers and with the right quality products offered, you can change prices over time to improve the profit margins.

    Do you offer Shopify eCommerce online store maintenance services for CBD stores?

    Yes. At Folio3 we offer reliable and consistent maintenance services for CBD Shopify stores. We also offer Shopify app builder, and Shopify eCommerce online store integration services to assist CBD merchants to get started with their business easily.

    What credit card processors allow CBD?

    Credit card processors typically allow CBD transactions as long as the merchant can prove that the product is legal in their jurisdiction. In order to do this, the merchant must provide a CBD product label or certificate of analysis from a third-party testing laboratory. Once the processor has this information, they will likely allow the CBD transaction to go through. However, it is important to note that some processors are more stringent than others and may require additional documentation before approving a CBD transaction. Therefore, it is always best to check with your processor beforehand to avoid any issues.

    Who does Shopify use for payment processing?

    Shopify uses a number of different payment processors, depending on the country in which the transaction is taking place. In the United States, Shopify uses Stripe for payment processing. Stripe is a leading provider of payment processing services, and it is used by many major online retailers. In Canada, Shopify uses Braintree for payment processing. Braintree is a subsidiary of PayPal, and it offers a similar range of payment processing services. In other countries, Shopify uses a variety of different payment processors, including Adyen, WorldPay, and Amazon Payments.

    How to get a CBD merchant account?

    In order to get a CBD merchant account, you will need to follow a few simple steps. First, you will need to find a reputable merchant account provider that offers CBD merchant accounts. Next, you will need to gather the required documentation, which may include your business license and tax ID number. Once you have gathered the required documentation, you will need to complete an application for a CBD merchant account. After your application has been approved, you will be able to start processing credit and debit card payments for your CBD products.


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    About

    Folio3, a Software Powerhouse established in 2005, is one of the leading eCommerce solution providers for SMBs and Fortune 500. The Company has expertise in diverse industries such as Animal Care, Retail, Automotive, Food and Agriculture, and Health care. From ecommerce store design and development to full-scale ERP deployment and integration, Folio3 has done it all.