Why Is It So Hard to Open a Payment Account as a CBD Business?
The CBD industry in the UK & EU has long faced challenges securing payment accounts due to its high-risk status. While major retailers like Holland & Barrett and Boots openly sell CBD products, smaller startups are often rejected by traditional acquiring banks.
Thankfully, many banks are now expanding their support for CBD-friendly businesses. With more competitive merchant account options and rates aligned with mainstream industries, there’s growing hope that compliant CBD companies will gain better access to reliable payment solutions.
Dealing With CBD Compliance Requirements
At Northern Payments, we specialise in onboarding CBD businesses across the UK and EU. With deep knowledge of compliance requirements, we help match your company with the right acquiring bank to support seamless and secure payment processing.
The rules around THC content and online CBD product listings can be confusing. Many wholesale CBD suppliers offer white-label or dropshipping services, which may give the false impression that all products are legal and approved for retail sale.
However, this isn’t always the case. Without the right compliance checks, you risk launching your business and applying for a merchant account—only to be told your products are prohibited. Meanwhile, the same items may appear to be freely sold by wholesalers across the UK, which can be incredibly frustrating without expert guidance.
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THC Levels In CBD
The UK has stricter THC limits in CBD products compared to the EU. While most EU countries allow up to 0.3% THC, UK guidelines permit just 0.01% THC or 1mg per container for consumer CBD products, as confirmed in official government guidance.
A common misconception is that the UK allows 0.2% THC, but this threshold only applies to commercial hemp cultivation, not to finished CBD products sold to consumers.
Novel Food Registration
If you’re selling CBD consumables in the UK or EU, novel food registration is a legal requirement. All ingestible CBD products must be listed with the UK Food Standards Agency (food.gov.uk) or the European Commission Novel Foods database (food.ec.europa.eu) depending on your market.
Any product not on these approved lists or in the process of registration cannot be legally sold in the UK or EU. Acquiring banks will typically request proof of registration before approving your merchant account application.
Flower, Resin, Seed Sales in the UK and EU
CBD flower, resin, and seed products fall under a higher-risk category compared to CBD oils, creams, balms, and edibles. As a result, they face stricter regulatory oversight in both the UK and EU.
In the UK, it is currently illegal to sell CBD flower or resin, regardless of THC content. However, several EU countries, including France and Spain, are moving toward legalisation and increased retail availability.
Hemp seeds can be sold legally in the UK as novelty items, but they must not be used for propagation or human consumption. Similarly, many EU nations allow the online sale of seeds under specific conditions.
Drug Paraphernalia
Products such as bongs, grinders, pipes, king-size rolling papers, and vaporizers are classified as drug paraphernalia and fall outside standard approval processes for CBD merchants. These items are often flagged due to their direct association with drug use.
As a result, most acquiring banks are reluctant to approve merchant accounts for businesses selling these products. That said, we’re starting to see signs of change in certain markets. If you operate in this space, contact us to check the latest approval options available.
How We Can Help You
✅ At Northern Payments, we work closely with leading acquiring banks to stay ahead of current CBD regulations. This allows us to guide you through payment industry changes and keep your business running smoothly long term.
✅ We regularly benchmark our acquiring partners to ensure we offer competitive rates for high-risk merchant accounts. Whether you’re a new startup or an established CBD business, we can help you get approved faster.
✅ Accept payments in-store or online with ease. We support shopping carts like Shopify, WooCommerce, Magento2, and PrestaShop, plus offer bespoke API integrations for full flexibility.
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