Despite the 2018 Farm Bill legalizing hemp-derived CBD in the US, many banks still treat CBD as a cannabis product and refuse to process payments.
CBD regulations vary significantly by state. Some states restrict ingestible CBD products, creating compliance complexity that banks prefer to avoid entirely.
Visa and Mastercard have limited which acquiring banks can process CBD, restricting the overall pool of available processors.
CBD products, like other health products, see elevated chargebacks from customers unsatisfied with wellness outcomes.
| MCC | Description |
|---|---|
| 5912 | Drug Stores and Pharmacies |
| 5999 | Miscellaneous and Specialty Retail Stores |
| 5977 | Cosmetics Stores (for CBD beauty/topical-only stores) |
MCC assignment is at the acquiring bank's discretion. Your BoazPay account manager will confirm your MCC during underwriting.
Typical industry rate: 1.0% – 2.5%
CBD chargebacks are primarily driven by product dissatisfaction, subscription confusion on auto-ship programs, and declined delivery issues. Product quality and clear labeling are the most effective preventive measures.
48–72 hours for standard CBD retailers. Subscription/auto-ship models and businesses with prior account closures may take 5–7 business days.
3.2% – 4.9% discount rate + $0.20–$0.35 per transaction. Ingestible CBD carries higher rates than topical-only products. State compliance and CoA documentation can improve rates.
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