CBD stands for cannabidiol, which is one of the compounds found in cannabis. CBD oil is rising in popularity worldwide. Cannabidiol, abbreviated as CBD, is one of at least 113 active cannabinoids identified in cannabis. The press widely report on the potential health benefits, but also the possible risks when using CBD products. CBD or cannabidiol is a compound in marijuana that offers many benefits without any high. Health experts are describing the benefits of cannabidiol as extraordinary. It’s a promising treatment for epilepsy, forms of cancer and depression, and more. Maybe you’re interested in opening a business that sells CBD-derived products, and you’d like to know more about the special requirements you’ll need to meet in order to be successful. Well, we’re here to help!
Background on CBD:
The recent Agricultural Improvement Actof (The Farm Bill) that was signed into law on December 20, 2018, de-scheduled, some states chose to ban the sale of food, such as gummies and cookies, and drinks with added CBD despite the federal government’s move to decriminalize hemp and make it legal to cultivate for certain purposes.CBD as a controlled substance and provides that primary oversight of the growth, production, research, and cultivation of hemp derivatives belongs to the individual states, U.S. Department of Agriculture (“USDA”), and the Food and Drug Administration (“FDA”). Because the law was only recently passed and state and federal regulations need to be promulgated or amended, there are many unknowns about the nuances of how producers and purveyors of CBD can ensure they will be compliant.
Against this backdrop, businesses should tread carefully. Under the farm law, any part, extract, or derivative of the Cannabis plant that has a THC concentration of not more than 0.3 percent on a dry weight basis is legal. The consequences of non-compliance with the Farm Bill can be severe, up to and including a five-year ban on the production of industrial hemp for a third violation. The law in no way legalizes marijuana, which comes from the same plant as hemp. States also have the ability to refer matters to their respective Attorneys General if it is concluded that a producer acted with a higher level of culpability than simple negligence.
Substantial barriers to research and development of new CBD products have now been lifted, as have many barriers on interstate commerce. Nevertheless, businesses who ship the product throughout the United States should be aware of each state’s laws in which they transact.
CBD was approved as a drug ingredient in the FDA-approved anti-epilepsy drug, Epidiolex, therefore, the sale of any edible infused with CBD is not permitted.
Is it legal to use in the UK?
Cannabis was made illegal in the UK in 1928 following an international drug conference in Geneva when an Egyptian delegate convinced everybody that it was a threat to society and as dangerous as opium. So many years later, despite cannabis still being illegal in the UK as a recreational drug, there’s been a huge spike in interest towards CBD oil and hemp-infused products.
The number of people using CBD oil, also known as cannabidiol, in the UK alone is estimatedto stand at around 300,000.CBD may be useful as a treatment for patients with psychotic symptoms like paranoia and anxiety, as well as depression.
CBD is an exception and is completely legal in the UK, “provided it has been derived from an industrial hemp strain that is EU-approved”, CBD is legal in the UK as long as it does not contain THC, which is a controlled substance under the Misuse of Drugs Act 1971.
For CBD oil to be legal in the UK, it must contain no more than 0.2% THC, and the THC must not be easily separated from it. By contrast, cannabis oil, which has a higher THC content, is not usually allowed in the UK.However, a CBD product with traces of psychoactive substances found in cannabis is considered to be a controlled substance under the 1971 Act and is therefore unlawful to possess and supply unless it meets the ‘exempt product’ criteria outlined in the Misuse of Drugs Regulations 2001.
The UK government says it currently has no intention of legalising the use of cannabis for recreational use, and possessing cannabis remains illegal in all circumstances.
Why Do Banks Consider CBD A High-Risk Industry?
Acquiring banks are uncertain of CBD payment processing in view of its link to marijuana. The hemp plant is comprised of cannabidiol (CBD) and THC. While THC is the psychoactive, painkilling compound in weed, CBD is a characteristic pain relieving with hardly traceable amounts of THC. The association itself, we’ve found, is sufficient to drive away certain acquiring banks. Our acquiring banks accepting CBD Merchant Account, however, welcome CBD merchants with the correct criteria.
By accepting CBD Payment Processing online , the merchant would now be able to serve a global clientele with established systems for cannabis payment processing.
· STRAIGHT E-COMMERCE SALES
Proof the merchant can produce at least $1,500 every week in sales.
Four to six months of payment processing history with banking statements showing company name, total sales, chargebacks, and refunds.
Endure a 10 percent rolling reserve
· SECURING CBD PAYMENT PROCESSING
At IPAYTOTAL, we work with organizations who legally and ethically source CBD products, we won’t work with organizations that fall outside of law and compliance guidelines. The accompanying will be evaluated while applying with any of our accomplices; business location, the source of supply, shipping and sales, location restrictions and the law of origin and location of intended sale.
· LONG-TERM SOLUTIONS FOR CBD MERCHANT PROCESSING
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%)
LOOKING FOR A CBD MERCHANT ACCOUNT?
Look no further than iPayTotal, the leading experts in getting your CBD Oil Merchant Account ready to accept payments