Investors and startups are clamoring for information and guidance on how to get into the CBD business amid an upsurge in what’s clearly proving to be the pace-setting sector in the overall hemp industry, according to Daniel Kruse, CEO at European advisory HempConsult GmbH.“We’ve had a huge increase in the number of queries about CBD in the past 12 months. Companies want to know about the legal issues, how the value chain works and what the market looks like overall,” Kruse said.
We’re in the midst of a CBD craze.
Cannabidiol — CBD — is a compound in the marijuana plant with purported medical benefits but very little (0.3 percent or less) THC, the plant’s psychoactive ingredient.
In other words, it won’t make you feel high or stoned.
Dozens of online companies sell it as a supplement. And it can be found in everything from cosmetics to bottled water to coffee. You can pick it up it in health food stores and smoke shops — even in New Jersey, where pot hasn’t been legalized.
The most common reason for using CBD oil is to alleviate anxiety and depression, said Martin A. Lee, director of the non-profit cannabis research group Project CBD and author of “Smoke Signals: A Social History of Marijuana.”It’s also popular for pain and is being used to treat cancer, Crohn’s, diabetes, rheumatoid arthritis, PTSD, cardiovascular disease, antibiotic-resistant infections, multiple sclerosis and schizophrenia.
Because marijuana is illegal at the federal level, there’s a dearth of clinical trials on the medical effects of CBD oil in the U.S., but Lee said there is “extensive pre-clinical research” here and more definitive studies abroad. It’s approved for chronic pain in more than two dozen countries, he said.
Recently, the drug Epidiolex, whose active ingredient is CBD oil, was approved by the FDA for use in controlling seizures in children.
Despite its widespread use, the short answer is no, CBD oil is not legal.
That’s because the oil comes from the marijuana plant, which is classified by the federal Drug Enforcement Administration as a substance with “no currently accepted medical use and a high potential for abuse,” requiring strict control, Lee said.
Of course, the legality of pot in the U.S is a tangled web. Even in states like California and Colorado, where marijuana is legal on the state level, dispensaries could technically be shut down at any time by the federal government.
Similarly, though CBD oil is technically illegal on the federal level, it is sold freely online and in stores even here in New Jersey. Erica McBride, executive director of the National Hemp Association in Washington, said there have been instances in states where pot hasn’t been legalized where CBD oil was confiscated at the post office or people possessing it were arrested, but it’s “very rare.”
Hemp is marijuana grown for non-recreational uses and contains 0.3 percent or less of THC.
“To my knowledge, everyone who fought these incidents won, once they proved the CBD oil had 0.3 percent or less of THC,” she said.
Growing and producing CBD oil made from hemp may soon become fully legal. Lawmakers are working to finalize a 2018 Farm Bill sponsored by Sen. Mitch McConnell that removes hemp from the controlled substances list, allowing it to be grown legally on a large scale. Negotiators are hoping for a completed report this month and a vote on the bill by year’s end.
Even then, it remains to be seen what the FDA will do to regulate CBD oil products.
CBD and Hemp OIL payment processing service
For people who work in the hemp business, it can be difficult to secure merchant accounts which facilitate convenient hemp payment processing. The reason is that the hemp business is considered to be ‘high risk’ and therefore the financial institutions which most businesses go to to get merchant accounts will decline them.
Thanks to the fact that the industry is pretty new, and on the edge of being legal it is still seen as somewhat unreliable and underhand to a lot of people, and so the hemp industry is still having to work on its reputation. Whilst you might be able to see and understand the benefits of products such as hemp oils, creams and other items there are still many people and areas who are still coming round to the idea. And it is because of this perceived unreliability and reputation that a lot of financial institutions have deemed it to be ‘high risk’, refusing merchant accounts or help with any related to hemp payment processing.
Payment Processing Service for all Hemp and CBD related merchants
Most companies in the hemp industry work either through retail (a physical shop), mail order or e-commerce and regardless of what type of business yours is, CBD Merchant Account can help you to process all related to CBD or Hemp payments at the best rates for your business, with the utmost transparency. Unfortunately, running businesses online and by mail order especially, lends itself particularly to card payments, and for businesses to be unable to process these types of payments – or to be able but at high cost to themselves can stifle the success and growth of a business.
iPayTotal is a CBD payment processor that provides CBD merchants with premium high-risk merchant services. We utilize a variety of processing techniques to ensure that CBD merchant processing is a smooth and simple process for our high-risk CBD Merchant Account. Some of the features of your CBD merchant account include:
- Multi-bank processing (including off-shore)
- Secure payment gateway
- Chargeback alerts
- Chargeback disputes
- ACH/Check 21 processing
- Fraud prevention and protection
- Competitive processing rates (below 6%)
As a CBD payment processor, iPayTotal works hand in hand with CBD merchants to protect their businesses from account closures, fraud, and chargebacks. We offer award-winning fraud and chargeback protection and have strong relationships with over 40 banks who work with high-risk merchants both in the United States and offshore.