For those of you who are Shopify merchants in the USA and need a CBD merchant account, I have a contact with a merchant account company (I've known them for over 20 years) who are able offer merchant accounts for processing CBD.products.
Here is their website Shopify CBD
They are able to set up CBD merchant accounts usually within days of receiving the paperwork from you. You will be able to accept all major credit cards: MasterCard, Visa, Discovery and American Express. They have great, competitive rates. Again, only for Merchants in the USA.
Shopify Expert and Partner
Hi Connie --
Not sure what you mean by direct merchant processors....
My merchant account paratner works with a major US Bank that will accept hemp and CBD products for Shopify and ShopifyPlus merchants who are located in the USA. The approval process, even for new merchants, is very quick. Once the app is filled out it's usually a week or less for approval.
But if you can explain what you mean by direct processors I will explain here.
For now contact me at email@example.com or firstname.lastname@example.org -- and if you include your phone number I'll give you a call -- and give you their info. They are USA Based and work with a major US Bank. I've known them for about 20 years.
Shopify Expert and Partner
Update on Domestic CBD Merchant Accounts
As of March 24. 2019
Background on Elavon (US Bank)'s Domestic CBD Program:
Elavon® began offering credit card processing services to US-based hemp-based CBD oil sellers back in November of 2018.
As of March 14, 2019, Elavon will no longer accept new merchant applications. Thousands of their CBD merchants are receiving letters indicating that they have 45 days to find a new processor.
Main Reason for US Bank's Recent Decision:
At the annual 2019 MAC conference (Merchant Acquirers Committee), the Federal Trade Commission (FTC) declared that the commercial sale of CBD is "illegal". An issue that the Federal Trade Commission has not properly addressed is a previous ruling by the Food and Drug Administration (FDA) which determined that CBD containing less than 0.30% THC by volume is legal in all 50 US states.
Immediately after the FTC announcement, Mastercard leadership stood up, and in front of about 500 risk managers declared the sale of CBD to be a BRAM (Business Risk Assessment and Mitigation) violation and ineligible for Mastercard processing.
A Legal Strategy Moving Forward:
Our company has a direct relationship with the largest and most trusted CBD merchant processing provider in the United Kingdom. For over three years this processor has successfully built up the largest networks of ISO/Acquiring Banks in the CBD/Hemp Oil industry.
We have an amazing portfolio of credit card processing solutions for those of you selling CBD-hemp produces. These services can integrate seamlessly into e-shopping cart platforms such as; WordPress-WooCommerce, Shopify, BigCommerce, Wix, PrestaShop, Magento, and many others.
Send me an email or give me a direct telephone call if you have a need in this area.
An approved Shopify Developer | Certified Front-end Developer
Merchant Processing for CBD In the USA
Update: Effective March 28, 2019
I'm going to shed light on a topic flooded with confusion and misinformation. Online sellers of hemp-derived CBD need to better understand the challenge that all USA-based payment processors and banks face relevant to credit card payment processing and CBD.
FDA vs FTC
The official Merchant Acquirers Committee (MAC) website goes into detail on this subject. Google it.
So, what we're dealing with are two US government agencies who can't come into agreement. They're not on the same page. For this reason, on March 14, 2019, MasterCard USA determined that the sale of CBD is a BRAM (Business Risk Assessment and Mitigation) violation and ineligible for Mastercard processing. Let that sink in good. MasterCard transactions involving the sale of CBD products are prohibited as it pertains to federal law.
THE LEGAL SOLUTION
If you expect to sell CBD oil via the Internet and comply with US law, register as UK business entity. This is what our payment processor helps you do and it's very affordable. The process is completed inside of two business days.
I personally work with three UK-based payment processors each of whom are approved by Shopify to offer full scope credit card processing.
Via a telephone conversation I had with a company director just yesterday, their credit card processing rates to USA businesses of any size are 3.95% + $.30 cents per transaction. No monthly fees, no rolling reserves, no hold on funds, and no volume requirements. Next day availability of funds after making a sale.
Out of respect for other Shopify developers who may offer a similar product, I'll kindly keep this post brief. Simply call me or send an email if you need more information.
Shopify Web Developer | An Approved Google Engage Digital Marketing Agency