If you’re considering selling CBD products on your Shopify store, it’s important to understand its risks. Selling CBD products, in general, can be risky, but selling them online takes things to another level. The FDA has been cracking down on companies who sell CBD without going through a proper registration process, and they have even gone as far as seizing shipments of these products at customs. So, before you jump into this business venture, make sure you understand all of the risks associated with it.
Once you get all the information, you’ll see it’s not really that difficult to start selling CBD on Shopify.
As the hemp and CBD industry continues to grow, ecommerce platforms like Shopify are seeing surges of CBD startup growth. Beyond unique product lines and creative marketing, new businesses need to understand how to acquire a merchant account for their business if they want a presence in this quickly growing market.
Overview: Selling CBD on Shopify
- Can I Sell CBD On Shopify?
- Shopify CBD Policy
- Shopify CBD Payment Processor
- How to apply for a CBD Merchant Account
- Shopify CBD Merchant Accounts in Canada
- What type of CBD products can you sell on Shopify?
- Who’s the Best Shopify CBD Payment Processing Company?
- Shopify CBD Frequently Asked Questions
Can I Sell CBD On Shopify?
First, there are a few basic steps to figure out if you can sell CBD on Shopify. Then, to hedge legal risk, they recommend that you consult with a lawyer to understand all of the different regulations in the industry.
Most startups, however, don’t have time or financial resources for digging into every detail – and it doesn’t need to be perfect from day one anyway because the most important information about the sale and restriction of hemp-related products is online these days. Therefore, we would advise looking up both federal and state regulations for your exact product before exploring standards for shipping & sales.
Shopify CBD Policy
Now that you’ve done your research, make sure to stay up-to-date on the Shopify CBD policy. If you don’t follow it closely and find out about it, your merchant account can (and probably will) be canceled. Then all of your payments will not go through, which would leave your online business with nothing.
The laws constantly change in this field. New states are allowing certain levels of THC content, while others have strict rules against selling hemp-related products or anything containing even a fractional amount of THC contents. If your products are consumable such as gummies or edibles, then the FDA will be more than happy to explain what you need from them.
Shopify CBD Payment Processor
To process credit cards online, you’ll need a solution that allows your Shopify CBD business the ability to operate. Unfortunately, the default payment processor for Shopify does not allow cannabis-infused products, but there are many alternatives out there with more flexible policies in place.
You’ll want to find a third-party CBD payment gateway like Bankcard that can provide you with the high-risk merchant account you’ll be needing.
CBD is categorized as high risk because of the above-mentioned legal stipulations. In addition, banks that support your account don’t want to have the risks associated with CBD products.
How to apply for a CBD Merchant Account
To get a Shopify CBD merchant account, you’ll have to go through a three-step process:
CBD Merchant Account Application Process
Apply to receive a payment processing account. This entails filling out the general form, then adding details in a more thorough merchant application. Here your processor will be collecting important information while you’re at it- like how long you’ve been operating and your chargeback rates.
You’ll also want to share what state you’re operating in and just how much sales volume per month is being processed on average.
CBD Merchant Account Underwriting Process
After you’ve shared all the necessary documents and company details, Bankcard will review your application. This is when we’ll be in contact with you if we need to request a few adjustments to your site or ask for verification of any sensitive documents such as COAs that show THC below 0.3%.
CBD Merchant Account Approval Process
Once we approve your CBD merchant account, Shopify turns into a solid platform to accept payments and monitor important details about your account.
With your Shopify account, you can start accepting payment as soon as the bank approves it. You’ll also have access to an easy-to-use portal through the financial institution for all of your transactions, making managing cash flow much more manageable. In addition, with our risk management features like chargebacks and refunds monitoring, we ensure that everything goes smoothly from beginning to end, so you’re always in control.
Shopify CBD Merchant Accounts in Canada
CBD merchants in Canada have the opportunity to apply for a merchant account according to legal regulations. The process is not complicated. It may be worth inquiring about which Canadian banks are open for business as there’s more room than usual, despite any regulatory restrictions that might exist with CBD products such as hemp oil.
We recommend you get in touch with us if you’re looking to use Shopify in Canada to sell CBD products. We’ve helped hundreds of companies grow their business using Shopify!
What type of CBD products can you sell on Shopify?
US merchants in certain states can sell select hemp or hemp-derived cannabidiol (CBD) products on Shopify. Merchants can sell these products only in states where permitted by law. State laws and regulations governing the sale of these products vary significantly and are subject to change. Therefore, you should consult with an attorney to determine how and where you’re able to sell your product.
- Capsules and Pills
- CBD FlowersCBD for Dogs and Pets
- CBD for Vaping
- CBD Gummies and Edibles
- ConcentratesCreams and Lotions
- Ointments and Topicals
- Sprays and Atomizers
Who’s the Best Shopify CBD Payment Processing Company?
Opening a credit card processing company is quite the task. They all have different standards and guidelines for opening merchant accounts, so make sure you do your research before signing up with one of these companies.
It’s important to find someone who has experience in CBD-related transactions; they may be able to answer any questions you might have about this new form of business transaction that just popped onto the scene.
When applying, it’ll require detailed information from you–be thorough with what information is needed. If anything seems unclear or out-of-place, there could be a problem down the line when trying to open an account after being declined on security grounds like identity theft prevention measures.
Make sure to keep your CBD merchant account company updated by following up periodically throughout the application process.
Shopify CBD Frequently Asked Questions
In the United States, hemp products that meet the definition of “hemp” as defined in the 2018 Farm Bill and comply with all other applicable federal, state, and local laws may be sold on Shopify. However, merchants cannot sell CBD derived from marijuana which violates these guidelines set forth by law.
In the United States, products that meet the definition of (or that contain ingredients that meet the definition of) “hemp” as defined in the 2018 Farm Bill and that comply with all other applicable federal, state, and local laws, including those in the jurisdictions of your customers, can be sold on Shopify. However, merchants are not permitted to sell products containing CBD derived from marijuana.
Shopify will now allow US merchants to sell topical and consumable hemp-derived CBD products, provided that they are operating in a state where the sale of their product is explicitly permitted. In addition, they must comply with all applicable laws and regulations – including those requirements for customers within your jurisdiction – before being able to list any item on Shopify’s store.
Shopify will permit US merchants to sell topical and consumable hemp and/or hemp-derived CBD products, provided that they are operating in a state where the sale of their product is explicitly permitted and they comply with all applicable laws and regulations, including those in the jurisdiction of their customers. In the United States, merchants selling hemp and/or hemp-derived CBD products must complete the Attestation for the Sale of Hemp and Hemp-Derived Products.
To ensure that you comply with all applicable laws, we recommend consulting an attorney before selling any product on the Shopify platform.
No matter your jurisdiction, merchants may sell any product on the Shopify platform that complies with the laws of their jurisdiction and your customers’ law, as well as Shopify’s Terms of Service Acceptable Use Policy or other policies related to online commerce. Merchants should consult a lawyer if they have questions about which products can be sold depending on location-specific legislation. It will affect not only how these items are distributed but also where customers come from who buy them.
No matter their jurisdiction, merchants may sell any product on the Shopify platform that complies with the laws of their jurisdiction and the jurisdiction of their customers, as well as Shopify’s Terms of Service, Acceptable Use Policy, and other applicable policies. It’s the merchant’s responsibility to ensure that they comply with all applicable laws. We recommend merchants consult an attorney if they have any questions about the legality of their products.
The Attestation for the Sale of Hemp and Hemp-Derived Products is specific to US merchants selling hemp and/or hemp-derived CBD products. Canadian CBD sellers must abide by Shopify’s Terms of Service, including ensuring that they comply with all applicable laws. Merchants in other jurisdictions should continue to comply with Shopify’s terms of service and any local regulations governing their business activities if they wish to sell these items on our platform.
The Attestation for the Sale of Hemp and Hemp-Derived Products is specific to US-based merchants selling hemp and/or hemp-derived CBD products. In Canada, merchants wishing to sell CBD must be licensed cannabis sellers and must use Shopify Plus. Merchants in all other jurisdictions must continue to comply with Shopify’s Terms of Service and Acceptable Use Policy, which includes ensuring that the merchant is selling products according to all applicable laws and regulations.