Why Most CBD Brands Get Denied for Payment Processing (And How to Fix It)

Intro: Running a CBD business is tough—but getting approved for payment processing shouldn't be the biggest hurdle. Yet for many entrepreneurs in this space, it is. Here's why most CBD brands get denied and how to finally get approved.

1. The "High-Risk" Label CBD is still considered high-risk by most banks and processors due to federal regulation and chargeback concerns—even if your business is fully legal and compliant.

2. Mismatched Processors Square, Stripe, and PayPal often terminate CBD accounts because their policies restrict hemp or cannabinoid-related products. These platforms weren’t built for you.

3. Incomplete Documentation A surprising number of CBD business owners don’t submit lab results, product COAs, or a clear terms of service—leading to instant denial.

✅ The Fix: Work with a processor who specializes in CBD. At Clay Pay, we know exactly what underwriters are looking for and get most CBD brands approved within 48 hours.