Need to process payments in a gray-area market?
High Risk Payment Bank is your expert ally in navigating high-risk payment challenges.
Case Study: Overcoming Payment Roadblocks in the CBD, Kratom & THC Industry
Client Overview A fast-growing e-commerce company specializing in CBD oils, Kratom powders, and Delta 8 & 9 THC products was generating strong demand across the U.S. market. Despite a loyal customer base, their business faced continuous setbacks due to the complex and high-risk nature of their product categories.
The Challenge
The company attempted to scale through several mainstream and secondary processors but repeatedly ran into major obstacles:
- Multiple merchant account closures due to policy violations or sudden underwriting changes
- Difficulty onboarding with major gateways like Shopify Payments, Stripe, and PayPal
- Rolling reserves of up to 15% that strangled cash flow
- Inability to accept credit cards for Kratom or Delta 8/9, severely impacting cart conversions
- Compliance uncertainty, with conflicting legal interpretations across state lines
This left the merchant relying on manual payments, ACH, and cryptocurrency—none of which offered the ease or trust customers expected.
Solution: High Risk Payment Bank Steps In
High Risk Payment Bank worked with the merchant to implement a stable, compliant, high-risk processing solution tailored for the cannabis-adjacent industry.
HRMB Delivered:
- A custom high-risk merchant account tailored to high-ticket, delayed-delivery businesses
- No reserves requiredafter demonstrating strong fulfillment history
- Fast approval process with full underwriting for transparency
- Integrated gateway for seamless e-commerce checkout
- Chargeback mitigation tools Chargeback mitigation tools
What We Delivered:
- Custom merchant account with an acquiring bank that accepts CBD, Kratom, and Delta 8/9
- Zero rolling reserve, thanks to risk profiling and industry-specific underwriting
- Seamless e-commerce gateway integration with WooCommerce and Shopify (via third-party gateway)
- Ongoing compliance support, including COAs, labeling reviews, and legal document vetting
- Chargeback mitigation tools and 24/7 reporting dashboard
The Results
In just 90 days, the merchant experienced a dramatic turnaround:
- Restored credit card acceptance, including Visa and Mastercard
- Revenue grew by 35%, driven by higher conversion rates
- Cash flow improved with no reserves and faster settlement
- Account stability with full regulatory compliance, ensuring long-term scalability
“High Risk Payment Bank didn’t just give us a merchant account — they gave us a long-term business partner. Our customers trust us again, and we can finally grow without fear of being shut down overnight.”
Conclusion
For merchants in CBD, Kratom, and THC, payment processing isn’t just a service — it’s a survival tool. High Risk Payment Bank understands the regulatory landscape and provides customized, stable solutions for one of the most complex verticals in e-commerce.