If you operate in the CBD, peptide, or nutraceutical industry, you’ve likely discovered that securing a reliable merchant services account can be frustratingly difficult. Despite surging consumer demand and growing legitimacy in these markets, payment processors and acquiring banks continue to label these industries as high risk. But what exactly makes them high risk—and how can a company like Space City Payments provide a clear path to secure, long-term payment processing?
Let’s break it down.
Why Are These Industries Labeled High Risk?
1. Regulatory Uncertainty
CBD, peptides, and nutraceuticals often exist in legal gray areas. While hemp-derived CBD is federally legal under the 2018 Farm Bill, the FDA still prohibits certain types of claims and products. Similarly, peptides and research chemicals fall under loosely regulated or research-only categories. Nutraceuticals, though legal, are subject to tight scrutiny over health claims, labeling, and ingredients.
Because regulations can shift quickly, acquiring banks worry about liability. If your business is unknowingly out of compliance or if a rule changes overnight, banks and processors don’t want to be caught in the fallout.
2. Chargebacks and Customer Disputes
These products often involve recurring billing models (like monthly supplements) or are marketed with bold health claims, which increases the likelihood of chargebacks. Whether due to delivery issues, lack of perceived effectiveness, or buyer’s remorse, disputes are more common in these sectors.
Excessive chargebacks not only damage your relationship with processors but can lead to account freezes or even placement on the dreaded merchant services MATCH list, a blacklist shared among banks.
3. Marketing Practices
Many CBD, peptide, and nutraceutical brands rely heavily on aggressive digital marketing—including affiliate programs, influencer endorsements, and bold health-related claims. While effective, these methods can sometimes violate advertising standards or mislead consumers, making the business more risky from a compliance and reputational standpoint.
4. Product Origin and Quality Control
Because these products are often sourced internationally or compounded in non-pharmaceutical facilities, banks worry about consistency, quality, and safety. One bad batch can trigger recalls or lawsuits, which could impact the merchant and its payment processor.
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How Space City Payments Helps High-Risk Merchants Succeed
At Space City Payments, we specialize in placing high-risk merchants—including CBD, peptide, and nutraceutical brands—with dependable, transparent, and long-term merchant services solutions.
1. Access to Several High Risk Processors
Unlike standard merchant services providers, we work with 9 different processors that understand the nuances of high-risk verticals. We know which underwriters are open to your products, what documentation they need, and how to get you approved—often in 48 hours or less.
2. High-Risk Expertise
This isn’t just a side service for us—it’s our core competency. Our team stays on top of industry regulations, underwriting trends, and compliance best practices to make sure your merchant account is stable, scalable, and safe from unnecessary disruption.
3. Chargeback Management and Fraud Tools
We help you implement tools and strategies to reduce chargebacks and improve your reputation with banks. From gateway filters and fraud scoring to chargeback alerts and mitigation services, we ensure your risk profile stays manageable.
4. Transparent Pricing and Hands-On Support
Many high-risk processors charge hidden fees or lock merchants into unfair contracts. Not us. At Space City Payments, we pride ourselves on straightforward pricing, no hidden clauses, and white-glove customer service. When issues arise, we don’t disappear—we solve them with you.
Final Thoughts
CBD, peptides, and nutraceuticals are exciting, fast-growing industries—but getting a reliable merchant account doesn’t have to be a constant uphill battle. By working with a merchant services provider who knows the terrain, you can focus on scaling your business instead of fighting your bank.
If you’re looking for a stable, trusted payment solution tailored to your high-risk business, contact Space City Payments today. We’ll help you process with confidence and grow with peace of mind. Click the link to schedule an appointment! https://meetings.hubspot.com/dmcguffin/schedule-a-meeting