Why CBD Merchants Pay More on Shopify
Selling CBD products on Shopify comes with a unique set of challenges — particularly when it comes to payment processing. Here’s a full guide on getting a CBD merchant account approved on Shopify.
Common issues include:
- Rejected transactions from major card networks
- High processing rates (3–7%) for CBD merchants
- Frozen payouts or sudden account closures
- Chargeback risks and reserve requirements
For UK-based CBD brands, these hidden costs can quickly eat into profit margins.
The Cost of Card-Based CBD Transactions
Here’s what a typical fee structure looks like when using high-risk payment gateways on Shopify:
- Transaction Fees: 3.5% – 6.5% per order
- Per-Order Surcharge: £0.25 – £0.50
- Rolling Reserve: Up to 10% of funds held for 180 days
- Chargebacks: £15–20 per dispute, even when unwarranted
These charges add up fast — especially if your store has high average order values.
A Better Way: Pay by Bank for CBD Payments
Wallid Pay by Bank uses open banking technology to facilitate direct bank-to-bank payments, eliminating the need for card networks. This makes it an ideal solution for Shopify CBD merchants often classified as "high risk."
Why CBD Merchants Choose Pay by Bank:
- No card network rejection
- Zero chargebacks — thanks to verified bank ID
- Instant payouts — funds settle in real time
- Lower transaction fees — fixed-rate A2A pricing
- Runs alongside PayPal or cards if needed
CBD Payments Comparison: Card Processors vs Pay by Bank
Disclaimer: This article is for informational purposes only and is not affiliated with or endorsed by Shopify.
How to Add Pay by Bank to Your Shopify CBD Store
- Open the Shopify App Store
- Click Install and securely connect your business bank account
- Navigate to Settings > Payments > Alternative Methods
- Enable Wallid Pay by Bank as an additional payment method
That’s it! You can continue offering PayPal or card payments — Wallid works alongside them seamlessly.
Final Thoughts: Simplify CBD Payments and Cut Fees
Tired of paying high fees and dealing with payment uncertainty? Wallid’s Pay by Bank app offers a simple, cost-effective, and compliant solution for UK Shopify stores selling CBD.
Frequently Asked Questions (FAQ)
Can I sell CBD on Shopify in the UK?
Yes. Shopify allows the sale of CBD products in the UK as long as your products meet local laws and regulations. You also need to use a payment processor that supports CBD transactions, as Shopify Payments and Stripe may not allow them.
Why do CBD payment processors charge higher fees?
CBD is considered a high-risk product category due to changing regulations, chargeback risks, and restrictions from banks and card networks. As a result, many processors charge higher transaction fees, impose reserves, or restrict service altogether.
How does Pay by Bank help with CBD payments?
Pay by Bank enables direct account-to-account (A2A) payments using open banking, bypassing card networks. It offers instant settlement, lower fees, no chargebacks, and full support for CBD merchants — making it ideal for Shopify stores.
Can I use Pay by Bank with other payment methods on Shopify?
Yes. Wallid Pay by Bank works alongside existing options like PayPal, Klarna, or credit cards. It appears as an additional method during checkout, giving customers more choice while lowering your costs.
