Merchants working in CBD, vape, and nutraceuticals have always faced a tougher road than most when it comes to payment solutions. In 2025, that hasn’t changed — if anything, the hurdles are higher. Banks continue to be risk-averse, card schemes are clamping down on disputes, and regulators scrutinise anything tied to nicotine or bold health claims.
Still, this isn’t the same story as a decade ago. More options to help merchants are emerging that simply didn’t exist before. Non-bank institutions, offshore alternatives, and even crypto settlements are reshaping how high-risk sectors can keep money moving. The market hasn’t become easy, but it has become more flexible.
Why Payment Processing Is Still So Complicated
On paper, CBD is legal in the UK provided THC levels remain below 0.2%. In the US, legality depends on the state. Nutraceuticals often fall into a grey area: supplements can be sold, but if the marketing makes unproven medical claims, it can attract attention from regulators. Vape products sit under their own strict set of rules, particularly around nicotine content and advertising.
From a bank’s perspective, all of that looks messy. Three factors in particular make these sectors unattractive to mainstream financial institutions:
- Legal uncertainty. A product cleared in one jurisdiction can be banned in another. A single policy shift can upend entire operations overnight.
- Chargeback exposure. Refund disputes, unsatisfied customers, and recurring billing issues can drive chargeback ratios above what Visa or Mastercard will tolerate.
- Reputation risk. For large banks, the potential damage of being seen to “sponsor” controversial industries often outweighs the potential profit.
The upshot is familiar: higher fees, longer onboarding, rolling reserves, or just flat rejections when merchants apply for accounts.
What’s Changed in 2025?
Despite the continuing challenges, the payment solutions environment isn’t static. A few key developments are shaping the landscape this year:
- Tighter thresholds from card schemes. Visa’s updated Acquirer Monitoring Program (VAMP 2025) and Mastercard’s dispute rules mean merchants are under more pressure to keep chargebacks well below 1.5%. Some acquirers now intervene when the ratio exceeds 0.9%.
- Growth of NBFIs and EMIs. Non-Bank Financial Institutions (NBFIs) and Electronic Money Institutions (EMIs) have stepped into spaces that traditional banks abandoned. Licensed under PSD2 in the EU and equivalent frameworks elsewhere, these providers offer multi-currency accounts and faster onboarding — sometimes in weeks rather than months.
- Heavier compliance checks. Stronger KYC and KYB expectations are now the norm. Merchants are asked to provide product certificates, supplier contracts, and clear refund terms. Regulators are no longer tolerant of vague paperwork.
- Crypto as a backup channel. Stablecoins such as USDT and USDC have moved firmly into the mainstream for B2B settlements. They don’t replace cards, but they provide a fallback when banking channels stall.
Example: A UK-based nutraceutical seller with customers in Europe and North America might use a Lithuanian EMI for euro payment solutions, a US processor for credit cards, and stablecoins to settle invoices with overseas suppliers. Five years ago, this model would have been unusual. In 2025, it’s increasingly normal.
Payment Solutions That Work Today
Specialist High-Risk Merchant Accounts
A handful of acquirers now employ underwriters who understand CBD, vape, and nutraceutical risks. These accounts don’t come cheap — rolling reserves of 10–20% are common — but once approved, merchants gain stability and access to card networks.
Offshore & Alternative Banking
Lithuania, Cyprus, and some Caribbean jurisdictions have positioned themselves as hubs for high-risk EMIs. These accounts allow merchants to operate in multiple currencies and often provide faster settlement. The trade-off is higher costs and, occasionally, lower consumer trust.
Crypto Gateways
Stablecoins have become indispensable for certain merchants. According to Chainalysis, more than 60% of international B2B crypto payment solutions in 2024 used stablecoins. For high-risk sellers, crypto can reduce reliance on banks, avoid settlement freezes, and cut dispute risks. But regulators are paying attention, so it’s wise to treat crypto as a supplement, not a sole payment rail.
Aggregator Models
Some PSPs operate umbrella accounts that pool multiple high-risk merchants. This approach offers fast access to processing, but merchants trade control for convenience. Fees are higher, and if another merchant in the pool causes issues, everyone may feel the consequences. For smaller merchants, though, it’s often the first realistic step into card acceptance.
Who’s Willing to Onboard High-Risk Merchants?
The short answer: not many. But there are names to know.
- PayKings – Longstanding specialist in CBD and vape accounts.
- Bankcard International Group (BIG) – Focused on nutraceuticals, with compliance-heavy onboarding.
- SMB Global – Strong in offshore and international merchant accounts.
- Soar Payments – US-based processor open to CBD, vape, and other regulated products.
- eMerchantBroker (EMB) – Known for high approval rates and alternative rails like ACH and eChecks.
- SeamlessChex – Provides ACH access for CBD and nutraceutical merchants where card processing is blocked.
- Fasto – Works with global merchants, offering multi-currency settlement.
- Worldnet Payments – A hybrid provider offering both acquiring and alternative payment services.
- Authorize.net (via resellers) – While not directly high-risk friendly, some resellers now offer CBD-focused onboarding.
Each comes with its own pricing, geographic focus, and risk tolerance. The key is matching the provider to the merchant’s specific risk profile.
Improving the Odds of Approval
Even with the right partner, applications fail if the basics aren’t in place. Based on FCA guidance and best practice, merchants should:
- Be clear in marketing. Avoid unverified health claims; use disclaimers where needed.
- Manage disputes proactively. Quick refunds are better than chargebacks. Monitoring weekly, not monthly, helps.
- Publish transparent policies. Refund and subscription terms should be visible, simple, and in plain English.
- Prepare documentation. Licences, supplier contracts, certificates of analysis — all should be ready to submit.
- Invest in customer support. Many chargebacks start with poor communication. A responsive help desk is often the cheapest risk tool.
- Keep reputation clean. Too many poor reviews can torpedo an application even before underwriting begins.
Looking Beyond 2025
CBD rules in the EU and UK remain under review, while US states continue to patchwork their own frameworks. Nutraceuticals may face tighter advertising restrictions as regulators push back on exaggerated health claims.
On the other hand, NBFIs are growing quickly, with some seeking full banking licences. Crypto’s role is unlikely to shrink, especially as stablecoins and central bank digital currencies become more common. For merchants, resilience means not relying on one channel but building a blended payment ecosystem.
The lesson is simple: those who diversify will be best placed to handle sudden regulatory or banking changes.
Bottom Line
CBD, vape, and nutraceutical merchants will probably never be seen as “low risk.” But in 2025, being high-risk doesn’t mean being shut out. With specialist merchant accounts, offshore EMIs, aggregator models, and stablecoin gateways, the menu of payment solutions is broader than ever.
The merchants who succeed will be those who strike a balance between innovation and compliance — keeping paperwork clean, minimizing customer disputes, and maintaining diverse payment solutions. That balance is what turns high risk into manageable risk.
If you’d like tailored advice on payment solutions for your sector, don’t hesitate to schedule a free consultation with our team.
For further insights, read our article: “Payment Processors for CBD, Kratom, Adult & Gambling in 2025”
Disclaimer
Widelia and its affiliates do not provide tax, investment, legal, or accounting advice. Material on this page has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, investment, legal, or accounting advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction. Please consult https://widelia.com/disclaimer/ for more information.
