CBD Sellers on Shopify Need To Know This...

Solved

JULY 7, 2019 | STATUS UPDATE

 

Thousands of CBD sellers are frustrated beyond words in their efforts to find CBD-friendly credit card processing that complies with Shopify's Payments Policy. What many CBD sellers don't understand is that Shopify is not the problem, the banks are not the problem and neither are the ISOs/MSPs offering CBD-friendly payment processing.

 

Back on May 15, 2019, Visa Corporation stop letting CBD transactions pass through their network. This is why it has taken so long for the handful of CBD-friendly banks and processors to activate CBD merchant accounts for the thousands who are eager keep their business afloat. At this present date, Visa has not yet taken their foot off the brake.

 

Here are a few reference sources dealing with Visa's ban on CBD transactions through their network.

 

Until Visa Corporation changes their policy (which it appears may happen sometime in August) you'll have to use legal and yet creative strategies to let your customers make payment.

 

It doesn't make any difference how many different processors that you submit an application to nor what a sales representative from a credit card processor has promised you. Until Visa takes their foot off the brakes CBD sellers have no choice but to wait it out OR choose a 'plan B'.

 

Here are a few payment acceptance solutions that are working for CBD sellers using Shopify. Each of these are rock solutions are Shopify-friendly.

 

  1. Blockchain network technology companies have launched CBD-friendly merchant accounts bundled with a payment gateway that supports Visa and MasterCard payments. *No AMEX and Discover Card at this time. Using the Blockchain network to accept Visa and Mastercard from online shoppers is working wonderfully. Your customer enjoys a seamless checkout experience and the seller benefits from instant settlement of funds within milliseconds. I personally like this option on the grounds that the seller does not lose "conversions" during the checkout process.
  2. There are three U.S. domestic banks offering credit card processing that supports MasterCard and Discover Card. It works great. Keep in mind that Visa is not allowing CBD transactions at this time, so your customers must pay with either MasterCard or Discover. It's possible that Visa card acceptance may be restored by early or mid-August. We'll have to wait and see.
  3. Peer-to-peer payment processing solutions are working very well and can be integrated into Shopify if you have the technical know-how. Some of the most popular peer-to-peer payment acceptance solutions are; Apple Pay, Google Pay, Venmo, Zelle and there are digital wallets that include the major card brands as a money transfer option as well. These tools give your customers the ability pay using any major credit card, debit card or bank-to-bank ACH transfer while on the Checkout Page of your online store. This is excellent on the grounds that the seller doesn't risk losing "conversions" in the checkout process.

Most of these P2P solutions can be integrated into your Shopify Checkout page in a manner that does not violate Shopify's Payment Policy.

 

So, there you have it. Until Visa takes its foot off the brakes and H.R. 1595 is passed by Congress, you had better get creative, roll with the punches, adapt and improvise.

 

Happy Selling,

Kevin James

(303) 257-4484

kevin@kjproweb.com

Shopify Approved Developer | API Coder/eCommerce Expert

 

Kevin James
Expert Web Developer & Shopify Partner
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Can you go into details about how to set this up? Or you can email me at jesica.1120@gmail.com. I appreciate it so much. We just got turned off from paypal, which was our last way to process. I'm so frustrated at the nonsense this is.

 

Jesica Mills

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Featured below is a fully functional demo website store built for CBD
sellers in need of a credit card processing --- immediately. The solution
allows your customers to pay using any major credit or debit card without
violating Shopify Payments Policy. At this time Shopify Payments Policy
will not allow CBD transaction to pass through their payment system due to
legal uncertainties relevant to CBD at state and federal levels.

https://demo-cbd-store-by-kj-proweb.myshopify.com/

As creative developers, our team created a rock-solid Checkout Page for CBD
sellers while remaining compliant with Shopify rules.
If you've been shut down by Paypal or others and need to quickly get back
on your feet send me an email or call.

Kevin James
Certified Full-Stack Developer & Coder
Shopify Approved Developer
(303) 257-4484
kevin@kjproweb.com
Kevin James
Expert Web Developer & Shopify Partner
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Hi Jesica,

 

Hopefully, the link provided below will help you quickly get back on your feet.
Featured below is a fully functional demo website store built for CBD sellers in need of a credit card processing --- immediately. It works!
 
In this demo website I use Google Pay Checkout. It's CBD-friendly. It allows your customers to pay using any major credit or debit card without violating Shopify Payments Policy!  It's important to understand that Shopify Payments Policy will not accomodate CBD transactions at this time. This is due to current legal uncertainties relevant to CBD at state and federal levels.
 
 
As creative developers, our team created a rock-solid Checkout Page for CBD sellers while remaining compliant with Shopify rules. If you've been shut down by Paypal or others and need to quickly get back on your feet send me an email or call.
 
Kevin James
Certified Full-Stack Developer & Digital Marketing Specialist
Shopify Approved Developer
(303) 257-4484
kevin@kjproweb.com
Kevin James
Expert Web Developer & Shopify Partner
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Hello, 

 

Is this still an option for CBD payment processing? Can you send me some info to sarah@bright-cbd.com or on here.

 

We were shut down by PayPal, Elevon and Green Box and are desperately looking for a solution.

 

Thank you,
Sarah

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Success.

Breaking News | September 28, 2019

 

A Shopify approved credit card processing solution for CBD sellers is finally here.

Ignore all previous posts. This is fresh news. A game-changer.

 

  • On September 17th, 2019, the payment processor that I represent became an official Shopify Payments Partner.
  • CBD sellers no longer have to tirelessly search for a [Shopify approved] credit card processing solution. We're here.
  • Our credit card payment solution can be activated from inside of your Shopify management portal (after you have applied with us and your merchant account is approved).
  • We're seeing approvals within three to four days for those who follow instructions and submit the required documents.
  • All of the major card brands are available to you; Visa, MasterCard, American Express & Discover Card.

By the way, I am an authorized ISO/representative of the processor. I'm also an Shopify approved Partner and certified full-stack web developer. This is what I do all day long, every day, all day. I've helped a quite a few CBD sellers get their online store reactivated.

 

Feel free to send me an email or give a telephone call. If I can help expedite your application, I'll gladly do it.

 

Happy Selling,

Kevin James

(303) 257-4484

A Shopify Approved Partner & Certified Full-Stack Web Developer

Kevin James
Expert Web Developer & Shopify Partner
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Success.

News update from the Food & Drug Administration:
Publication Date: 16 October 2019
 
 
Answers to two important questions:
 
9. Can THC or CBD products be sold as dietary supplements?
A. No. Based on available evidence, FDA has concluded that THC and CBD products are excluded from the dietary supplement definition under section 201(ff)(3)(B) of the FD&C Act [21 U.S.C. § 321(ff)(3)(B)].
 
10. Is it legal, in interstate commerce, to sell a food (including any animal food or feed) to which THC or CBD has been added?
A. No. Under section 301(ll) of the FD&C Act [21 U.S.C. § 331(ll)].
 
In light of this recent announcement from the FDA we can certainly expect to see CBD-friendly banks introduce new underwriting requirements for merchants. Rules of the game are constantly changing.  Ignorance of the law is not an excuse to break it.
 
It's your responsibility to know which products in your online store are legal vs illegal. What actions should you take?
 
  • Change or remove any verbiage on your website that refers to CBD as a "dietary supplement". It's a no-no.
  • Remove any CBD-infused food/meals from your website. It's a no-no.

Got questions? Send me an email or give me call.

 

Happy Selling,

Kevin James

Shopify Partner & Certified Full-Stack Developer

Authorized ISO Representing Multiple CBD-friendly Banks

(303) 257-4484

 
 
Kevin James
Expert Web Developer & Shopify Partner
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IT IS ILLEGAL TO SELL CBD-INFUSED FOODS VIA INTERSTATE COMMERCE
 
Effective October 15, 2019, the Food & Drug Administration determined that it is illegal to sell CBD-infused foods across interstate lines. A link to the official source is provided below.
 
In response to the new federal mandate, many CBD-friendly banks and payment processors that we work with have introduced new terms and conditions for merchant account approval.
  • Any verbiage that implies or suggests a medical or health benefit (product claims) must be removed from your website and promotional literature.
  • If you have online blog content that purports unsubstantiated medical claims/health benefits associated with the use of CBD, that content must be deleted. This includes some product testimonials.
  • CBD-infused foods must be deleted from your product inventory.
------------------------------

FDA Rule 10. 

It is legal, in interstate commerce, to sell a food to which THC or CBD has been added?

A. No. Under section 301(ll) of the FD&C Act [21 U.S.C. § 331(ll)], it is prohibited to introduce or deliver for introduction into interstate commerce any food (including any animal food or feed) to which has been added a substance which is an active ingredient in a drug product that has been approved under section 505 of the FD&C Act [21 U.S.C. § 355], or a drug for which substantial clinical investigations have been instituted and for which the existence of such investigations has been made public. [...FDA has therefore concluded that it is a prohibited act to introduce or deliver for introduction into interstate commerce any food (including any animal food or feed) to which THC or CBD has been added].

 
[Paragraph 5: '... Among other things, the FDA requires a cannabis product (hemp-derived or otherwise) that is marketed with a claim of therapeutic benefit, or with any other disease claim, to be approved by the FDA for its intended use before it may be introduced into interstate commerce.']
 
Kevin James
Shopify Approved partner | Expert Developer
ISO representing multiple payment processors
kevin@kjproweb.com | 818-850-1034

 

Kevin James
Expert Web Developer & Shopify Partner
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Hi Kevin

I am in the process of setting up a new shopify store for vape/Cbd products targeting customers here in the UK initially. There seems to be so many payment gateway/acquirer issues at present even though the products are perfectly legal.

Can you suggest a solution that seamlessly integrates with shopify and can be implemented fairly quickly?

Best regards

Lee
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Hi Lee,

 

I sent you a private message. Yes. There are several e-Commerce payment acceptance solutions that give you the ability to credit card and debit card transactions from customers --- each of which can be activated into a website in less than 24 hours. Both solutions come with no application fee, no set up fee, no monthly fees, and no burdensome underwriting process.

 

Happy Selling,

Kevin James

A Shopify approved partner | Expert web developer

(818) 850-1034

kevin@kjproweb.com

Kevin James
Expert Web Developer & Shopify Partner
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