Kratom is not the same as marijuana and CBD, yet sellers frequently keep running into same issues from marijuana dispensaries with regards to obtaining a merchant account.
Some credit card processors essentially clump kratom with marijuana and decline to give merchant accounts to either substance. Others will give merchant accounts to kratom, however, you can hope to experience a lengthier authorization process and pay expenses that mirror kratom’s high-risk processing status.
Most processors like to put kratom in the same category as CBD and marijuana and deny to give them merchant accounts. While some approve kratom sellers for merchant accounts, they still need to experience a lengthy, frustrating and patience-testing process and pays a high price to match the kratom’s high-risk processing.
High-Risk Processing: What Does It Mean?
It refers to businesses that are considered riskier to underwrite. This risk is due to several factors including highly regulated products, age-restricted items, industries with higher chargebacks and more.
Alongside CBD and marijuana, kratom selling is considered to be a high-risk industry. This is because of the confusion in its legal status. The US FDA has become more serious and strict about kratom imports, with some cases of destroying and seizing the products on sight.
In addition, most merchants would require clients to pay first upon order. Under unavoidable situations where the order can’t be complete, clients choose to file for chargebacks. And the higher the chargeback means that the industry is placed under the high-risk category.
Kratom, alongside marijuana and CBD, is considered a “high risk” industry, partly because of its confused legal status. The US Food and Drug Administration has additionally gotten serious about kratom imports, in some cases seizing or destroying the product. While it’s a smart thought to make sure the product is accessible for clients before charging for it, there are a few circumstances where organizations charge upon order placement and after that cannot complete the order. That can result in chargebacks. Higher than usual chargebacks is another reason that industries may considered high risk.
These complex factors implies you’ll have to look for a high risk processor that especially serves kratom businesses.
A tropical tree native to Southeast Asia, Kratom is the leaves that contain substances with a psychotropic impact. In general, it is sold in either loose powder or capsules at dispensaries and dietary supplement stores.
Kratom users swear by its medicinal properties that help with chronic pain, depression, and nervousness.
And while most processors would see kratom in the same category as marijuana and CBD, they have significant differences:
Kratom and marijuana are altogether separate plants. Kratom does not contain THC, the compound in marijuana that is accountable for the sentiment of being high. Neither has been examined widely, however, users mostly claim that the two give relief from chronic pain and therapeutic issues.
CBD is more closely connected to marijuana as in it’s from a similar plant, however, it also lacks THC. In that sense, it shares some similitude to kratom. Defenders of both kratom and CBD point to the way that neither one of the substances gets you high, however, can provide relief from various diseases.
The DEA and FDA on Kratom
The DEA once banned the sale of kratom a few years ago and added it to the “Schedule I” drugs. Schedule I drugs mean that there are no medicinal benefits and high potential for abuse. These include drugs such as ecstasy, LSD, heroin, and marijuana.
The DEA, however, delayed this ban to take a public review.
Most users claim that Kratom has indeed medicinal advantages and should not be viewed as schedule I drugs with some medical experts agreeing.
Meanwhile, the FDA has some concerns regarding the use of Kratom. They claim that there was about 36 death related to kratom items. They even said that incidents of kratom poisoning have increased 10-fold from the year 2010 – 2015. Also, they worry about the impact of kratom on the likelihood of addiction.
Legality of Kratom
Kratom is not illegal. However, this status can change, depending on further investigation of the substance. In addition, selling kratom can be illegal at local or state levels. It can be legal in a country but illegal in a few cities in the said country. This created the confusion about the legality of kratom.
The substance’s legality is indeed confusing, so you need to check in with local attorneys to know if you can sell kratom.
States with rules about kratom include:
- Illinois (can’t be sold to minors under 18)
- Jerseyville, Illinois (Illegal)
- San Diego, California (Illegal)
- Wisconsin, Alabama, Tennessee and Arkansas (banned, schedule 1 controlled drug)
- Sarasota County, Florida (Illegal)
- Indiana (Banned, synthetic drug)
- New Hampshire (Can’t be sold to minors under 18)
Unverified Health Claims
Kratom users claim a lot of medicinal advantages and benefits with kratom supplements. However, the FDA doesn’t agree just yet. And getting a merchant account without FDA endorsement on the product makes it more difficult for sellers.
Some of the questionable claims of kratom benefits are to assist sleep or even relieving pain in just 5 minutes. These claims caused the FDA to start issuing warning letters to sellers.
Any product or dietary supplements that makes a health guarantee without FDA endorsement will have a more troublesome time securing a merchant account. Unverified health claims can be as dubious as “assists with sleep” or as explicit as “relieves headaches in 5 minutes.”
The FDA has started issuing warning letters to kratom sellers that make health claims about kratom, including touting it as a powerful apparatus for fighting opioid addiction.
FDA revealed that despite these warnings, they keep on discovering organizations that sell kratom illegally with deceptive medical claims without solid evidence to back the claims.
Although numerous products have disclaimer statements claiming that they are not assessed by the FDA, it still won’t allow you to get a kratom merchant account easily.
Kratom Merchant Account: Apply Now at iPayTotal
Applying for a kratom merchant account is easy with iPayTotal. With iPayTotal, we only need a few inquiries concerning your kratom business and its legalities and will take no more than 10 minutes.
We wish to have a discussion with Kratom merchants to begin. Along these lines, with a couple of inquiries concerning your business and no more than 10 minutes of your time, our account managers can get a feel for your business and know which of our Kratom merchant account solutions is perfect for you.
iPayTotal merchant account solutions are customizable and ideal for any legal Kratom business. For more information on how you can apply for an online Kratom merchant account, call us directly at +44 800 776 5988 or get in touch with us through our website.