The Best CBD & Hemp Payment Processors 2026: Features, Fees, and Compliance

• Square exited CBD & hemp in August 2026 – retailers on mainstream platforms should immediately migrate to a CBD-specific payment processor.
• Cova Pay offers the best balance between ecosystem, costs, and processing fees with the only trade-off being that it is exclusive to Cova POS customers.
• The federal hemp redefinition (effective late 2026) will reclassify approximately 95% of intoxicating hemp products, driving further processor exits.
• 24 states either ban or prohibit delta-8 – state laws now range from 0% THC requirements (Idaho) to felony possession (Texas).
• Intoxicating hemp (delta-8, THCA, THC beverages) now faces the hardest path to payment acceptance – choose a processor that understands the distinction and accepts what you’re selling.

We evaluated the leading CBD payment processing providers based on compliance, pricing transparency, chargeback safeguards, system integration, customer support, and scalability. Here's how they compare at a glance:

And here is a detailed breakdown for each processor – including pros, cons, and a verdict on who it's actually suited for.

Cova Pay

Cova Software is one of the largest cannabis POS providers in North America, powering more than 2,200 retail locations across the U.S. and Canada. Cova Pay is the company's integrated payment processing solution, designed specifically for cannabis, CBD, and hemp-derived businesses. The platform also includes POS, eCommerce, inventory management, and reporting tools built specifically for cannabis and hemp retail – all built from the ground up to meet the compliance, reporting, and operational needs of the industry.

Cova Pay does not have a separate monthly fee – it comes bundled as part of an all-in-one retail solution which includes:

• Cova POS
• Cova Pay
• Inventory Management
• Compliance
• Reporting and Analytics
• 70+ integrations across eCommerce, loyalty, compliance, delivery, analytics, and more

All of this for $250/mo – which is often offset by the much lower processing fee. Additionally, retailers can choose from numerous processing options, including dual pricing – where the processing fee is passed to the customer, bringing your effective rate to 0% – or a wholesale rate structure where Cova guarantees the lowest overall rates for your business.

Editor’s Note: At the time of writing, qualifying CBD and hemp merchants also receive a free payment terminal with Cova Pay. Avail the offer and learn more about Cova's integrated POS and payment solution for CBD & hemp retailers.  

On the whole, Cova has made a name in the industry, with their POS being used across 2,200 retailers across North America. Cova Pay’s special pricing for the CBD and hemp segment helps bring the already low cost further down – especially when compared to peers and their regular discounts & offers.

Verdict: If the unified ecosystem of inventory, payments, and vast integrations appeal to you, then Cova Pay is very likely the best the market has to offer as of 2026. The tradeoff is that Cova Pay is exclusive to Cova POS users.

Learn more about Cova's integrated POS and payment solution for CBD & hemp retailers.

Square (No Longer Supports CBD & Intoxicating Hemp Businesses)

Square provides POS hardware, payment processing, eCommerce, invoicing, and payroll services across the United States. It launched a separate early-access, application-only program for U.S. eligible hemp-derived products in 2019.

As of August 2026, Square is exiting the hemp and CBD space. Square notified merchants in August 2026 that it will no longer allow CBD and hemp-derived products to be sold on its platform, citing the upcoming federal recriminalization of many hemp products under the redefined hemp law.

Editor’s Note: Square has communicated its intent to exit but has not published a hard cutoff date for existing merchants. Monitor Square's seller communications for final deadlines.

The termination follows years of merchant complaints about account freezes, reserve holds, and support gaps. Retailers are advised to not assume that a product below 0.3% delta-9 THC remains eligible. Square instructed merchants to remove all CBD, hemp, and hemp-derived items from in-person and online catalogs by October 15, 2026.

Verdict: Existing Square merchants should export catalog and customer data, review payout and reserve terms, and immediately secure replacement processing.

Lightspeed

Lightspeed Commerce is an omnichannel commerce platform primarily serving retail, restaurant, and golf businesses in over 100 countries. The company offers a CBD POS system with a payment processing integration (2Accept) for high-risk categories including vape, CBD, hemp, and legal cannabis.

Editor's Note: Given Square's August 2026 exit from hemp/CBD and the tightening federal landscape around intoxicating hemp, Lightspeed may be next to follow. Lightspeed is not investing in this vertical – CBD isn’t even mentioned in its quarterly financial reports.

Square's exit shows how fast a general processor can walk away from hemp and CBD once the risk calculation changes. Lightspeed hasn't made a similar announcement, but it shares a similar underlying risk.

Verdict: Lightspeed is a general retail POS with hemp and CBD as one of many verticals it supports, not a core focus. For that reason alone it might be worth looking elsewhere – the higher processing fees and monthly penalties to use your own POS do not help the case. Existing CBD and hemp retailers using Lightspeed should consider the platform risk.

PaymentCloud

PaymentCloud specializes in merchant account placement for high-risk and hard-to-place businesses, operating as a broker rather than a direct processor – connecting merchants with payment gateways suited to their industry. It also provides gateway integration, virtual terminals, mobile card readers, and ACH processing.

Verdict: PaymentCloud is a strong choice for eCommerce-first CBD and hemp brands that need gateway flexibility and don't require an integrated brick-and-mortar POS. That said, their broker model means your rates are determined by the acquiring bank, not by PaymentCloud directly – which can work for or against you depending on your risk profile.

PayKings

PayKings is a dedicated high-risk merchant services provider across industries including CBD, vape, firearms, adult content, travel, nutraceuticals, and tobacco. PayKings works with banks willing to underwrite hemp and CBD product types. The company advertises no setup fees, fast approvals for qualified applicants, and dedicated support for CBD and hemp merchants.

Verdict: PayKings is worth considering if transparent pricing and interchange-plus structure matter more to you than an all-in-one platform. The broad banking network gives it strong approval rates, but rolling reserves and potential termination fees mean you should read the acquiring bank's agreement carefully before signing.

Easy Pay Direct

Easy Pay Direct is a long-standing high-risk processor built around a proprietary gateway that spreads transactions across multiple bank accounts to reduce shutdown risk. EPD focuses on high-risk and high-volume eCommerce merchants.

Verdict: EPD's multi-bank architecture makes it a good fit for established CBD or hemp brands processing significant volume, particularly those who've been burned by single-bank account freezes in the past. For smaller retailers or those just launching, the complexity and monthly costs likely outweigh the resilience benefits.

Products like delta-8 THC, THCA flower, HHC, delta-10, and hemp-derived THC beverages all grew out of the 2018 Farm Bill's definition of hemp (0.3% delta-9 THC by dry weight). That definition only measured delta-9, so an entire market developed around products that stayed under that line while being intoxicating (or psychoactive).

But the 2026 federal redefinition of hemp changed the legal definition of hemp to include:

• total THC measurement (THCA now counts toward the limit)
• a 0.4mg total THC per container cap (effectively eliminating current-dose gummies, beverages, and edibles)
• and exclusion of synthesized cannabinoids (delta-8, delta-10, and HHC are not considered hemp at all)

As a result, payment processors are reacting preemptively. Square's August 2026 exit is the most visible example. That said, many states are fighting this direction and introducing their own state laws.

However, if you sell delta-8, THCA, hemp-derived THC beverages, or any intoxicating hemp product, it’s best to switch to a dedicated hemp/CBD payment processor. General retail POS will likely continue kicking hemp and CBD retailers off the platform regardless of whether the products include intoxicating hemp or not.

A processor's use of “CBD-friendly” can be misleading – hiding major product restrictions behind a vague label. If you’re in the market for a CBD & hemp payment processor in 2026, the following key terms are must-know:

• CBD Merchant Account: A specialized business bank account that allows CBD and hemp companies to accept credit and debit card payments. Because CBD/hemp is classified as a high-risk industry, these accounts are subject to more stringent approval processes and often come with higher fees. Unlike traditional merchant accounts, they are designed to accommodate the unique risks associated with selling CBD products, like legal ambiguity and elevated chargeback rates.
• CBD Payment Gateway: The technology that transfers payment information securely between your website or payment terminal and the payment processor. For CBD and intoxicating hemp businesses, the gateway must support compliance-aware transaction routing – some gateways restrict transactions by zip code to avoid processing sales in states where specific products are illegal. The best CBD payment gateway helps ensure seamless customer experiences, supports recurring billing if needed, and provides transaction visibility through reporting tools.
• CBD Credit Card Processing: This refers to the full suite of services involved in accepting and settling credit and debit card transactions for CBD & hemp sales. Because many card networks place restrictions on CBD & hemp, processing these payments involves more than just swiping a card. Processors must work with banks willing to underwrite CBD businesses and remain compliant with federal and state laws.
• High-Risk Processing: CBD, hemp, and intoxicating hemp are classified as high-risk due to regulatory scrutiny, potential legal issues, and a high incidence of chargebacks. This designation affects everything from your chances of approval to the rates you’re offered. High-risk processors have the tools, expertise, and infrastructure to deal with these added complexities.
• Intoxicating Hemp: A category for hemp-derived products that produce psychoactive effects – including delta-8 THC, THCA flower, HHC, delta-10 THC, and hemp-derived THC beverages. These products exist in a rapidly changing legal landscape, affect regular (non-intoxicating) hemp products, and represent the highest-risk category for payment processing in 2026.

CBD (cannabidiol) is a non-psychoactive cannabinoid extracted from hemp or marijuana plants. It doesn't produce a high. It's sold as oils, tinctures, topicals, edibles, capsules, and pet formulations – primarily marketed for wellness purposes like sleep and relaxation, though health claims require FDA approval to be made legally.

The term "CBD" gets used loosely, but payment processors care about the specific product form. Each carries different risk, legality, and approval likelihood:

The 2018 Farm Bill legalized hemp-derived CBD at the federal level, but that framework is being rewritten. Legislation passed in November 2025 introduces new clauses and redefines hemp in a way which would reclassify most intoxicating hemp products as marijuana under the Controlled Substances Act.

The rule was set to take effect November 12, 2026 but a Senate-passed continuing resolution has since pushed that deadline to December 11, 2026. Non-intoxicating CBD isn't the direct target of the ban, but the surrounding uncertainty has made every processor more cautious about the entire category.

As a retailer, some of the hurdles you’ll face include:

• FDA Regulation: CBD companies cannot make therapeutic claims without FDA approval. This limits how products can be marketed and adds compliance risk.
• Credit Card Networks: Visa, MasterCard, and other card networks have strict policies for high-risk industries like CBD. Violations can lead to blacklisting.
• Chargebacks: The wellness and supplement industry, which CBD falls under, has a higher-than-average rate of chargebacks; customers may dispute transactions more frequently due to delivery delays, product misunderstandings, or unmet expectations. These chargebacks can hurt your reputation and lead to account termination.

How State Laws Affect CBD & Hemp Payment Processing

Some states impose additional restrictions, require licensing, or prohibit certain forms of CBD like edibles and vapes. This patchwork of rules complicates payment processing, as many processors are unwilling to navigate the complex legal landscape.

For example:

• Idaho requires CBD to contain 0% THC – not even trace amounts – which takes most full-spectrum products off the table for retailers.
• South Dakota prohibits chemically derived cannabinoids including delta-8, delta-10, THC-O, HHC, and THCP.
• Texas schedules Delta-8, delta-10, THCP, THCA as controlled substances – possession is a state jail felony.
• Virginia capped hemp products at 2mg total THC per package on August 15, 2026.
• New Jersey banned intoxicating hemp sales and imposed a $3.75/gallon excise tax on hemp beverages as of April 13, 2026.
• California banned inhalable hemp (flower, pre-rolls, vapes) and any detectable THC in hemp food or beverages as of January 1, 2026 under AB 8.

Additionally, as of mid-2026, 24 states total either ban or effectively prohibit delta-8 for general retail through severe restrictions, including Alaska, Colorado, Delaware, Minnesota, Montana, New York, Nevada, Rhode Island, Utah, and Vermont.

For a complete look at CBD and hemp legality across the United States, read Where is CBD Legal in North America in 2026?

These state-level requirements can trip up retailers and processors alike. A product that’s legal in one might be banned in another. Payment processors that specialize in CBD and hemp will often provide a compliance checklist and restrict transactions based on zip code to avoid legal exposure.

Companies like Stripe – and until recently, Square – may seem like convenient solutions, but for CBD and hemp businesses, they carry frequent operational risks, and their limitations show up in predictable ways:

• Unexpected Account Shutdowns: One policy misstep or flagged product can lead to instant account closure. Funds may be held for months, cutting off your cash flow.
• Elevated Fees: Because you’re categorized as high-risk, you might be charged 3.5% or more per transaction, compared to the standard rates around 2.9% or less.
• No Industry Support: When you call support, you’ll likely get a generalist – not someone who understands the compliance requirements of selling CBD.
• Lack of Integration: Most general payment processors don’t integrate well with cannabis-specific point-of-sale or inventory management systems.

General processors treat supporting high-risk industries as optional revenue. And when that option is no longer as profitable as the rest of the industries they serve, they can simply drop you, without warning. Square openly courted CBD businesses and served the industry for seven years before the August announcement.

Partnering with the right payment processor can dramatically reduce your financial and compliance burdens. Below are some key features to look for.

• Regulatory Compliance: Make sure the processor has deep experience with CBD and high-risk industries. They should offer clear guidance on compliance requirements and ideally help you with onboarding and document preparation.
• Fees and Rates: Understand upfront how much you’ll be paying per transaction. This goes beyond the base rate; also ask about:

• Monthly minimums
• Setup fees
• PCI compliance fees
• Chargeback fees
• Rolling reserves

• Chargeback Protection: Some providers offer tools to manage and even reduce chargebacks. These may include dispute notifications, fraud detection, and alerts that allow you to respond before losing the funds.
• System Integration: Your processor should integrate seamlessly with your CBD POS, eCommerce platform, and your inventory software. Manual reconciliation wastes time and leads to errors.
• Customer Support: This is an often-overlooked but critically important component. Look for:
• Live phone support with short wait times
• Specialists familiar with CBD regulations
• No chatbots for sensitive issues
• Scalability: Will your payment processor support you as you grow? This includes:

• Adding locations
• Launching THC products
• Selling across state lines
• Handling higher transaction volumes

Unlike low-risk accounts, approval for a high-risk CBD merchant account is more rigorous and requires extensive documentation. Below is a look at what you can expect from the process.

Application Requirements

• Business License: Must be current and in good standing.
• COAs: Certificates of analysis confirming THC content for each product.
• Product List: Full list of items you plan to sell, including images and ingredients.
• Website Policies: Clear return, refund, privacy, and shipping policies.
• Age Verification: For ingestibles or vapes, age-gating must be present.

The Underwriting Process:

Getting approved for a CBD merchant account isn’t just about passing a credit check. Underwriters will look closely at the following:

• Business history: New businesses may be asked for projected revenue and business plans.
• Website Review: Underwriters will scrutinize your online store. Common issues include broken links, lack of policy pages, unclear product labeling, or unsupported claims.
• Product Compliance: If your product pages include phrases like “reduces anxiety” or “treats inflammation,” your application may be rejected outright.
• Banking Transparency: You’ll likely be asked for three to six months of business bank statements. These help the underwriter assess financial health and the risk of chargebacks.

If approved, you may be assigned a rolling reserve – a percentage of each transaction held by the processor to cover potential chargebacks. These can range from 5 to 15%, depending on your risk profile.

Tips for a Smooth Approval

• Use a processor that specializes in CBD.
• Provide thorough documentation from day one.
• Make sure your site is polished and compliant – no medical claims, full COAs posted, etc.

The federal hemp redefinition, state-level bans, and processor exits are creating short-term turbulence – but the underlying market isn't going anywhere. CBD demand continues to grow, regulatory frameworks are maturing, and the processors that remain in this space are more committed and better equipped than ever.

What's changing is who serves this market. General retail platforms are leaving while dedicated CBD and hemp platforms are investing deeper. And the businesses best positioned for what's next, are those with a payment processor built for regulatory change, transparent pricing, and a compliance infrastructure that adapts rather than retreats.

Mainstream solutions might offer fast onboarding, but they aren’t built for the long-term needs of a CBD brand. That’s why experienced CBD retailers are turning to Cova Payments. Cova was built from the ground up to support cannabis and CBD retail with unmatched reliability, compliance expertise, seamless POS integration, transparent rates, and future-proof infrastructure.

If you're migrating off Square, evaluating alternatives to Lightspeed, launching a new CBD/hemp store, or expanding into THC, Cova gives you the tools, support, and confidence to grow.

Cova’s CBD pricing is completely transparent (starting at just $250/mo) but book a free consultation to get a custom quote and see how your current processing costs compare. Cova's team will review your catalog, confirm product eligibility, and walk you through a live demo – no commitment required.