Does Authorize.Net Allow CBD?
In the rapidly growing market of cannabidiol (CBD) products, many businesses are seeking reliable payment processing solutions. One of the most common questions among CBD merchants is whether Authorize.Net, a leading payment gateway, allows the processing of CBD transactions. This article delves into the topic to provide clarity on the matter.
Authorize.Net is a widely recognized payment processing service that enables businesses to accept credit card, e-check, and digital wallet payments online. However, the company has specific policies and guidelines that dictate which types of businesses and products are eligible for its services. This has led to the question of whether Authorize.Net allows CBD, a substance derived from the cannabis plant.
Understanding Authorize.Net’s Policies
Authorize.Net’s policies regarding CBD transactions are somewhat complex. While the company does not explicitly ban CBD businesses from using its services, it does have certain restrictions in place. According to their terms of service, Authorize.Net prohibits the processing of transactions involving illegal products, including those that are not in compliance with federal, state, or local laws.
CBD is legal at the federal level under the 2018 Farm Bill, which removed hemp and hemp-derived products, including CBD, from the Controlled Substances Act. However, the legal status of CBD varies by state, with some states imposing stricter regulations on its sale and use. This discrepancy in state laws creates challenges for CBD businesses when it comes to payment processing.
Challenges for CBD Merchants
As a result of the varying legal landscape, CBD merchants often face difficulties when trying to find a payment processor that will work with them. While Authorize.Net does not outright ban CBD businesses, the company may require additional information or documentation to ensure compliance with state and federal laws.
Some CBD merchants have reported being approved for Authorize.Net’s services after providing proof of their legal status, such as a hemp cultivation license or a certificate of analysis for their products. However, others have encountered difficulties, with some being denied access to the platform altogether.
Alternatives for CBD Merchants
For CBD merchants who are unable to secure an account with Authorize.Net, there are alternative payment processing solutions available. Some popular options include:
1. Stripe: Stripe is a flexible payment gateway that does not explicitly ban CBD businesses. However, it is essential to review their terms of service and ensure compliance with state and federal laws.
2. Square: Square is another payment processor that may work with CBD businesses, although they also have specific guidelines and may require additional documentation.
3. Payline: Payline offers payment processing services for a variety of industries, including CBD. They may be more accommodating to CBD businesses compared to some other payment processors.
Conclusion
In conclusion, while Authorize.Net does not explicitly ban CBD businesses from using its services, the company’s policies and guidelines make it challenging for some CBD merchants to obtain an account. It is crucial for CBD businesses to thoroughly review the terms of service and ensure compliance with state and federal laws before attempting to set up an account with Authorize.Net or any other payment processor. By exploring alternative payment solutions, CBD merchants can find reliable and compliant options to process their transactions.
