Does Paypal Technically Approve CBD Sales?

Nowadays, people like to do online shopping and trading, and any individual to start an online business from home. One of the popular products to purchase online is CBD. But due to the legislative issues, the cannabis business is not easy to do, and there is no helping hand. Paypal is one of the payment processors, but does PayPal accept CBD sales?

CBD sales are not allowed by PayPal. The policy of this system does not allow its payment system to accept money to sell CBD products. The reason is that the legislation on CBD varies in different states. Other payment methods are there which can be used to sell CBD products. To run the CBD business, you should know about services you can utilize or not.

Different products can be prepared from CBD oil and used for many years. However, the Farm Bill of 2018 made hemp-derived products legal and blew CBD products into the market overdrive miserably because the payment processing didn’t allow a new class of products, which made it challenging for CBD merchants to discover the type of account which allowed them to carry out sales using credit cards and debit cards.

CBD or cannabidiol

It is one of the cannabinoids derived from cannabis plants called hemp. It is known that marijuana is also a cannabis plant, and it has more THC or tetrahydrocannabinol, psychoactive properties. But CBD contains only less than 0.3% of THC, and it will not make you high. Because of this confusion between THC and products from CBD were stolen under federal laws a few years ago.

Now it is not the case with CBD laws, and it varies widely from one region to another. All the states are now permitted to sell or purchase hemp-derived products containing less than 0.3% THC. Each state has owned its specific laws regarding cannabis products. Even though the effects of cannabis are legal in most of the United States, CBD merchant accounts remain restricted by most banks and credit card processors.

Many CBD business accounts have been closed without giving any prior intimation.

Does Paypal Technically Approve CBD Sales?

It is not easy to know about the legality related to CBD sales. Across the world, cannabis oil and its derived products are legal to sell. In the US, cannabidiol is legal in ten states, and in the forty states, the legality varies. Therefore it is generally safe to buy the products online and have them at your doorsteps. 

Even on the same road in the United States, you can see the areas where the drug is legal to buy and sell. Suddenly you can cross the state where CBD sales are forbidden. Hence selling the products are very challenging to the business people. It is an increasing problem in the world regarding online payment. 

In over 200 countries, PayPal is active, and in each state, it has its legislation and policies of CBD. But in the PayPal payment processor, there are no appropriate policies for every region in which their services are available. It is more challenging to sell the products in multiple legislative places with different cannabidiol regulations.

Till the complete and worldwide legalization of the products, PayPal will not permit the utilization of a payment platform for CBD sales. Also, there is a problem regarding the legislation as it is in the infancy stage, and in some states, the regulation of cannabis products will be changing every time.

It is a reason banks and other financial distributors like PayPal, look at it as a high-risk business, even though it is considered a lucrative industry. Paypal always stands away from the company marked as high risk, and cannabidiol comes under this list. Another issue regarding PayPal is that many people still fear using cannabidiol, even though it carries enormous health benefits. It made PayPal look at CBD sales in a bad light. 

Paypal concentrates only on low-risk industries. Low-risk industries are not going to have high chargeback volumes.

Is there any way to change PayPal policies?

If people give some positive feedback about CBD, it may influence the cannabis business and the PayPal platform. A web page is there for this, and any person can give their opinions and discuss the regulations and policies.


The increased popularity of the CBD industry made some payment processors give their services to the industry. Paypal allows anyone to sign up for a business account. But they were restricted from using its platform for CBD sales. Due to unstable legislation, it became a problem for the industry. You should know that you cannot use PayPal platforms for drug sales. 

As the CBD industry is high risk compared to other products, you may handle it only with a high-risk payment processor. It will be safe and effective for CBD merchants. Thankfully the number of platforms are available similar to that of PayPal.