CBD businesses are classified as high-risk by most banks. This guide covers how to get a business bank account for your hemp or CBD company, including the best EMIs and offshore banks.
CBD businesses face a banking landscape unlike almost any other legal industry. Despite the hemp-derived CBD market being federally legal in many jurisdictions and representing billions in annual revenue, a significant proportion of banks still refuse to service these businesses entirely. Understanding why — and knowing which institutions will work with you — is the difference between a thriving operation and a permanent cash-flow crisis.
The short answer: regulatory confusion and reputational risk.
CBD (cannabidiol) derived from hemp is legal in most of Europe, the UK, and at the federal level in the United States (following the 2018 Farm Bill). But banking compliance departments are not always equipped to distinguish between:
Many banks have blanket policies excluding the entire cannabis-adjacent sector to avoid any risk of inadvertently processing transactions for unlawful activity. The compliance cost of individually assessing each CBD business is, in their view, not worth the relationship.
Additionally, card network rules (Visa and Mastercard) have historically been restrictive around CBD merchants, meaning even banks willing to open accounts may struggle to offer card processing.
United Kingdom: Hemp-derived CBD products are legal. The Food Standards Agency (FSA) now regulates CBD as a novel food — products require authorisation before being sold as food supplements. This has added a compliance layer but has also legitimised the sector. Banks operating in the UK have increasing clarity, though many still apply sector exclusions.
European Union: The picture varies by member state. The EU Novel Food Regulation applies similarly to the UK. The Court of Justice of the EU ruled in 2020 that CBD is not a narcotic drug under EU law, which should have clarified the banking picture — but implementation is inconsistent across EU member states.
United States: Federal legality for hemp-derived CBD (THC ≤ 0.3%) was established by the 2018 Farm Bill. However, the FDA has not yet issued comprehensive regulations for CBD in food and supplements, creating ongoing ambiguity. State law varies further: some states have additional restrictions. Many US banks, particularly national banks, maintain conservative policies.
The key takeaway: the legal framework is broadly favourable, but regulatory fragmentation means banks in each jurisdiction apply their own risk assessments — often conservatively.
Beyond a basic current/checking account, CBD businesses typically need:
Business Current Account: For day-to-day operations — payroll, supplier payments, business expenses.
Merchant Services / Card Processing: The ability to accept card payments online and in-store. This is often the hardest component given card network restrictions.
International Payments: Many CBD businesses source products internationally (Switzerland, Colorado, etc.) and need efficient cross-border payment capability.
Business Savings / Deposit Facilities: For holding operating reserves.
Credit Facilities: Invoice finance, overdraft, or credit lines — harder to access for high-risk businesses but available from specialist lenders.
Currency Accounts: For businesses operating in multiple currencies.
The single biggest pain point for most CBD businesses is merchant services — accepting card payments — rather than basic banking. Many operators have basic accounts but cannot process card transactions reliably.
Specialist EMIs (Electronic Money Institutions): EMIs regulated under the UK's FCA or EU payment regulations have been faster to serve the CBD sector than traditional banks. Examples in the UK and European markets include institutions specifically set up for high-risk merchants. They typically offer:
The trade-off: EMIs are not banks. They do not offer FSCS protection in the UK (or equivalent deposit guarantee schemes). They may have lower account limits and less robust credit products.
Challenger Banks with Industry Programmes: Some challenger banks — particularly in the UK — have developed specific programmes for CBD businesses, recognising the sector's growth and legal clarity. These offer better integration with payment rails than EMIs.
Community Banks and Credit Unions (US): In the United States, community banks and credit unions — particularly in states with clear hemp/CBD frameworks — have been more willing than national banks to service the sector. They can often move faster because they are not subject to the same centralised risk policies.
International Banking: For businesses with international operations, banking in a jurisdiction with clear CBD regulation (Switzerland, certain EU states) can provide a stable primary banking relationship even if domestic banking is difficult.
Accepting card payments is the hardest part of CBD banking. The challenge:
Key processors that have served the CBD space include:
The processing rates for CBD are higher than standard retail — typically 3–6% per transaction versus 1–2% for standard merchants. Factor this into your pricing model.
When a bank does consider a CBD application, these are the critical assessment factors:
Product Legality Evidence: Lab test reports confirming your products are hemp-derived and below legal THC thresholds. Third-party Certificate of Analysis (CoA) from an accredited laboratory for each product line.
Regulatory Compliance: Novel food authorisation status (UK/EU), FSA submission receipts, or evidence of compliance with applicable food/supplement regulations.
Supplier Documentation: Contracts and compliance documents from your hemp/CBD suppliers, confirming their products meet legal standards.
Business Model Clarity: A clear description of what you sell, to whom, and through which channels. Banks want to confirm there is no ambiguity about the product type.
AML/KYC Readiness: Standard business banking AML requirements apply — ID for all beneficial owners, proof of business address, source of initial capital.
Chargeback History: If you have existing merchant accounts, chargeback rates below 1% are strongly preferable. High chargeback rates are the primary operational risk banks associate with CBD merchants.
Compile a Legal Compliance Pack: Before approaching any bank, assemble:
Write a Clear Business Summary: A one-page document explaining your business — what products you sell, what they contain (CBD derived from hemp, THC content), your sales channels, customer profile, and annual revenue. Banks want context before they dig into documents.
Demonstrate Financial Stability: Three to six months of bank statements, accounts if available, and a projected revenue model helps banks assess your viability as a long-term customer.
Use a Specialist Broker: A broker specialising in high-risk merchant accounts and banking for the CBD sector knows which institutions are actively onboarding CBD businesses and can present your application correctly. The difference in approval rates between a direct application and a specialist-introduced application is significant.
Struggling to open a bank account for your CBD business? Contact our team — we work with specialist institutions that understand the sector and can process your application efficiently.
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