Check Out Just A Few of The Companies That Trust & Use Leap Payments
Don’t: Ignore State-Specific Regulations
While federal law greenlights hemp-derived CBD, states like Idaho or South Dakota impose stricter rules, from outright bans to mandatory labeling. Processing payments in non-compliant states can lead to account termination or legal fines. Even in CBD-friendly states, failing to collect proper taxes or follow licensing can flag your transactions.
Action: Map your sales regions and cross-check state laws (e.g., California’s AB-45 requires specific testing). Work with a processor that adjusts to state-by-state rules, ensuring your payments stay above board.
Do: Monitor Chargebacks and Fraud Closely
CBD’s high-risk label attracts higher chargeback rates—customer disputes over product quality or confusion about CBD’s effects. Processors often penalize merchants with fees ($15-$50 per incident) or account freezes if chargebacks exceed 1% of sales. Fraud, like stolen cards, also spikes in online CBD sales.
Action: Use AI-driven fraud tools to flag suspicious transactions and clear refund policies to reduce disputes. Regularly review chargeback ratios and address spikes immediately to protect your account.
Real-World Impact
A CBD e-commerce startup learned compliance the hard way. Using a generic processor, they faced a $5,000 account freeze after vague descriptors (“Wellness Co.”) triggered a bank review. Chargebacks from unclear state sales added $1,000 in fees. Switching to a CBD-legal processor with compliant gateways, accurate MCCs, and fraud tools cut declines by 80% and saved $3,000 yearly in fees. Their dedicated manager ensured state compliance, letting them focus on scaling. Compliance isn’t just rules—it’s revenue.
Bonus Tip: Build a Compliance-First Mindset
Compliance isn’t a one-time checklist; it’s an ongoing commitment. Stay updated on 2025’s regulatory shifts—states may tighten CBD rules as federal oversight grows. Train staff on compliant sales practices, from labeling to tax collection. Document everything—licenses, lab reports, processor agreements—to defend your business during audits. A proactive approach keeps your payments flowing and your reputation intact.
Leap Payments: Your CBD Compliance Partner
Navigating CBD payment processing doesn’t have to feel like a minefield. At Leap Payments, we simplify compliance with approvals legal in all 50 states, ensuring your CBD business—retail or online—operates without fear of shutdowns. Our dedicated account managers guide you through state-specific rules, compliant gateways, and chargeback management, while our cash discount program (3-4% off for cash) and lower rates than big-box processors like Square or PayPal save you thousands. With same-day funding, all major card acceptance, and free PAX A920 terminals* (*for qualifying merchants), we’re built to keep your CBD business compliant and profitable. Ready to process with confidence? Visit LeapPayments.com to partner with a team that gets CBD compliance.
Stay Compliant, Stay Successful
CBD payment processing is a regulatory tightrope, but with the right do’s and don’ts, you can avoid costly pitfalls. By choosing compliant gateways, using accurate terms, partnering with legal processors, respecting state laws, and monitoring chargebacks, you’ll keep your business thriving in 2025’s evolving landscape. Leap Payments is here to make compliance your strength, not your stress—because your CBD success matters.
Contact Us Below & Secure Your Lifetime Rate Lock Today!
Or Call: (800) 993-6300