- September 18, 2018
- Posted by: ipaytotal
- Category: best high risk merchant account provider, best high risk merchant services, Best Marijuana Merchant Accounts, Best Merchant Accounts for CBD Oil, Fraud Prevention, high risk merchant account solutions, High Risk Merchant Accounts, high risk merchant payment processor, online payments
Kratom— a plant safe to consume and quite different than CBD and marijuana, but still categorized as a high-risk business and brings the same problems as marijuana dispensaries in terms of obtaining a merchant account.
Most credit card processors just categorize kratom with marijuana, refusing to provide a merchant account for either substance. Still, some can provide a merchant account for kratom but with a lengthier approval processing and pay high fees that reflect the plant’s high-risk processing status.
Although kratom is consumed plant with distinct impacts, kratom merchant account solutions continue to be categorized as high risk. Indeed, kratom businesses are one of the highest of high risk, and solutions for such are not smooth to come by. Not many acquiring banks attempt e-commerce merchant account solutions for kratom, but IPAYTOTAL is partnered with those that do.
Quick Question: What is Kratom?
Kratom is a part of a tree. Specifically, it is from the leaves of a tree native to Thailand. It is usually sold either in capsules or loose powder form at dispensaries or dietary supplement stores.
In lower doses, the effects of kratom help with medical issues ranging from chronic pain to depression and anxiety. In higher dosages, kratom can produce the same “high” that oxycontin and marijuana produce.
Users of kratom said that it is similar to aspiring when taken in less than 5 grams, providing you with enhanced attention and mental clarity. Others reposted that it enhances sex drive, reduced appetite and calms the nerve.
Still, some people claim that it has side effected from anxiety, shivering, and high risk of addiction.
The Case For A Kratom Merchant Account
The ample majority of merchants that examine about kratom merchant account solutions are nutraceutical or dietary supplement merchants who desire to add it in their cards of contribution(they are very smart to contact us to do so). Backers of kratom will support its adoption as a aspirin, and how, when taken in defined doses (less than 5 grams), appreciating focal point and attention. Other reported benefits include:
- Enhanced sex drive
- Reduced appetite (for weight conscious users)
- All natural ingredients
There are also allegations of reactions, for instance, shivering, anxiety, and disturbance when ingested in small dosages.
The Difference of Marijuana, CBD and Kratom
Marijuana and kratom are entirely different plants. Kratom doesn’t have THC which is a chemical in marijuana that is responsible for the feeling of “high”.
Meanwhile, CBD is more closely related to marijuana in senses that they are from the same plant, but lacks THC, which shares the same similarity to kratom. Both CBD and kratom are said to neither get you high but provide some relief from several pains.
Kratom and the DEA
A few years ago, the US DEA planned to ban kratom sales and classified it as a schedule I drug. This means that it has no currently accepted medicinal benefits and has a high potential for abuse. This made kratom a part of drug category that includes marijuana, LSD, ecstasy, and heroin.
However, the DEA delayed this ban to take public comment. Some medical professionals said that kratom, marijuana, and CBD have medicinal benefits and should not be considered Schedule I drugs.
So, Is It Legal to Sell Kratom?
At the time of this writing, kratom is not illegal, federally speaking. Its status is subject to change depending on the further study of kratom and its effect. However, despite this legality, it is still illegal at local or state levels.
Last year, kratom is legal to sell in some states and not in other. In some cases, it is overall legal in a state but prohibited within certain countries or cities. The kratom’s legality is still in flux, so you need to check with an attorney in your area to ensure its legality.
In the US, 9 states as of now have regulations concerning the selling and using of kratom:
- 5 states prohibited the use (Arkansas, Tennessee, Indiana, Wisconsin, and Alabama)
- 2 states have prohibited the use of kratom for those below 18 (New Hampshire and Illinois)
- Few cities in 3 states have prohibited its use (Jerseyville, Illinois, Sarasota, Fla, and San Diego)
Kratom Merchant Account: Why is it high risk?
Kratom along with CBD and marijuana is considered a high-risk business. This is partly because of the substance’s complicated legal status. The FDA has also cracked down on imports of kratoms and in some cases destroying or seizing the products.
And most kratom merchants do not make sure that a product is available for their customers before charging it. They charge a customer for an order placement and can’t fulfill the order. This results in chargebacks. And the higher chargebacks mean that it is high-risk business.
Finding a Kratom Merchant Account Provider
The first thing to do is for you to determine if you are in a state where kratom substance is legal. This is because processors won’t allow you to open a kratom merchant account selling an illegal product.
Now, if you are legally permitted to sell kratom, then you will need to find a high-risk merchant account provider that works with kratom vendors. It is crucial that you do not try to hide what you are selling. Providers will eventually find out and you will have your merchant account terminated and may be liable for fraud or fines.
Some of the things you will need when applying for a kratom merchant account include:
- 3 months of business banking statements
- Payment processing history for 3 – 6 months
- The company should be based in states that allow legal selling of kratom.
Understand that a processor may require additional information or take longer application processing for kratom merchant accounts.
If you have exhausted your domestic choices, then you can consider an offshore merchant account. These accounts are issued by providers outside the US, so they are not subjected to the same rules as domestic providers. You should know, however, that you need to pay a hefty price for this kind of account.
At iPayTotal, we combine our particular aptitudes with our fundamental, coordinated approach. IpayTotal can help you in appreciation and make your high risk merchant account and guide you through the endorsing framework taken after by the bank while onboarding an application. Despite whether you require a start-up merchant arrangement, a membership account, a medication store merchant account, iPayTotal can empower you to set up with most affordable rates and no issues for your high-risk associations.
Ipaytotal provides payment solutions to help you to grow your business. Processing thousands of credit and debit card transactions per day, we make the process of opening a merchant account easy and affordable.