With the passing of the 2018 Farm Bill, CBD and Hemp products are now deemed legal. However, legality doesn’t mean the banks want to process credit cards for the industry. CBD merchant credit card processing is still tough to come by. Truth be known, many industries are legal but not all banks want to process for them.
For instance, take the Ecig industry. Vaping has been legal for the last 7 years but yet banks were skeptical to get into the space. A handful of banks did capitalize on the trend. Now with elevated health risks and recent deaths in 2019 from vaping related incidents, the industry is taking heat. Trump recently announced a drastic change in law that will ban flavored ejuice and nicotine products. Nothing has been written in stone and the industry awaits final judgment.
Like the vaping industry Hemp Oil Credit Card processing and CBD Merchants, face the same kind of scrutiny. However, more banks are welcoming subsets of the industry such as CBD Topicals and edibles such as gummies. Perceived health risks are subdued compared to inhaling products through a vaporizer or the like.
CBD Merchants are considered high risk merchants. Anytime an industry is considered high risk, it doesn’t matter if it is legal or not, the big banks generally do not want to partake in such industries. Another great example would be the Weed industry. More and more states are jumping on the legalization band wagon, but yet the banking world isn’t bending to the needs of these merchants.
The merchant services industry is a funny business. Some merchant services companies can accept certain business while others cannot. This depends on the acquiring sponsor banks. The smaller more unknown banks take more risk versus big banks such as BofA , Wells Fargo, and Chase.
We are experienced in the riskier side of processing and can help CBD merchants process credit cards. Presently we are able to process for merchants that sell CBD Topicals, CBD Skincare, CBD Petcare, and Hemp Oil.