If you are involved in the CBD industry or plan to be then this article contains essential information for you and will cover issues such as payments and banking for CBD online businesses.
What banks allow CBD business?
Accepting CBD businesses is a matter of individual bank policy. The first question relates to the legal status of CBD trade in the country where the bank is based. Next, most established commercial banks have more conservative policies and will either refuse such accounts, or classify them as high-risk with greater restrictions and charges. In general, working with an Electronic Money Institution (EMI) is much more likely to provide easy acceptance, as well as all of the features you will need.
Does PayPal work with CBD companies?
This is a still a question for which no official response has come out of PayPal. According to their official Acceptable Use Policy, “PayPal currently does not permit the use of their payments platform for the sale of products containing Cannabidiol (CBD)”. However, there are many known cases of both websites and retail traders, especially national pharmacy chains in the UK, where you can purchase CBD oil using PayPal. It’s not possible for us to give a definite answer, although right now it seems it is possible, at least in the UK.
Banks that accept CBD business
Finding a bank that will accept CBD business is not easy. The number of banks and financial service providers that accept CBD activity is very limited. In the USA, the difference between state and federal laws makes the process extremely complicated. In Europe, CBD laws vary between the individual countries. Some products like skincare or medications containing CBD are permitted in some countries but illegal in others, and making it more complicated, the level of THC content permitted can be different both by country and by type of product.
Banks have to be assured that you will only be dealing with permissible products, and only supplying customers in countries where they meet all legal requirements. As well, the bank may impose stricter conditions, require more comprehensive reporting, and charge higher rates than would be the case for normal non-CBD customers. Make sure all of this is specified at the time that you are setting up the account.