CBD for Shopify

[Rowby]

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.

Rowby Goren
Shopify Expert and Partner
rowby@rowby.com

https://www.Rowby.com
https://www.PlusRowby.com

[Connie_Wedemey1]

Do you know of any direct merchant processors

[Rowby]

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.

Best,

Rowby Goren
http://www.Rowby.com
rowby@rowby.com

[christian30]

Thanks for sharing, very much appreciated. Where can I find these merchants and how do I submit an application?

[Rowby]

Hi  Christian

For now contact me at rowby@rowby.com or rowbyrowby@gmail.com -- 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.

Rowby
Shopify Expert and Partner

[Rowby]

Hi Christian -- Here's their website Shopify CBD

Rowby

[joeyanne_]

Hi there, I am wondering if you can help.

I run an online CBD business already in the UK and now Hong Kong, do you know of any merchants to support CBD products in Hong Kong? The main payment gateways they use are MasterCard, Visa & Paypal.

Thanks

Joey.

[Cascadia_Pay]

Hi Joey - do you have a company incorporated in Hong Kong? If you have a Hong Kong company I can probably help you out.

[kjproweb]

---

---

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.

Overview:

• Processing rates and fees: 4.95% up to 7.95% + $0.45 cents per transaction (depending on previous monthly processing volume. New start-ups are gladly accepted)
• Underwriting approval and setup time is 5 to 7 business days (typical)
• No monthly recurring fee
• Internet Payment Gateway included
• One-set up and service integration fee of $495.00
• Initial 3 business day hold on funds, immediately thereafter next day deposit of funds.
• No rolling reserve hold on funds. No hold on funds ever.
• The sale of vape or vapable products is permitted
• Auto-ship/Recurring billing permitted
• Open API code to fit your customized website design needs
• No limits on weekly or monthly dollar volume

Send me an email or give me a direct telephone call if you have a need in this area.

Happy Selling,

Kevin James

An approved Shopify Developer | Certified Front-end Developer

(303) 257-4484

[kjproweb]

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

• On one hand, the Food & Drug Administration (FDA) has already determined that the sale of CBD products containing less than 0.30% THC by volume is legal in all 50 states. In other words, we have a green light from the FDA.
• However, the Federal Trade Commission (FTC) still maintains the CBD is on their "prohibited category" list of products.

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.

Happy Selling,

Kevin James

Shopify Web Developer | An Approved Google Engage Digital Marketing Agency

(303) 257-4484

kevin@kjproweb.com

[KristineC]

I saw that I just got my letter yesterday so annoying to have to go with something else. So are you using Google Pay? I am super new to all of this so want to make good decisions.  I have only been on shopify for about a month and a half

---

@kjproweb wrote:

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

• On one hand, the Food & Drug Administration (FDA) has already determined that the sale of CBD products containing less than 0.30% THC by volume is legal in all 50 states. In other words, we have a green light from the FDA.
• However, the Federal Trade Commission (FTC) still maintains the CBD is on their "prohibited category" list of products.

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.

Happy Selling,

Kevin James

Shopify Web Developer | An Approved Google Engage Digital Marketing Agency

(303) 257-4484

kevin@kjproweb.com

---

[Quadrapay]

As of now i am not aware of any legal way of processing payments for CBD sales. The challenge is that the FTC still has CBD/THC on prohibited list. This is the key reason why processors for Card and ACH are trying to stay away from the business.

Lets look at the brighter side.

If you run a Shopify website then you can sell to buyers in multiple nations. You can establish a company In EU, With a Bank Account and a physical presence. This way you can get better chances of approvals. CBD merchant account For Europe is a reality. Off-course some conditions do apply about the percentage of THC content and few other things. Still its lot better to look at the brighter side and hope things will get better in USA soon. 

Website requirements for EU CBD Merchant Account

1. Site must be active and should resolve on Https protocol
2. All products must be clearly listed
3. Return policy and terms, Cookies, privacy policy should be visible on site
4. Contact details of the company must be on contact us page
5. Domain must me in the name of the company or the major shareholder

KYC Needed For EU CBD Merchant Account

1. Product composition
2. Legal opinion about the product
3. Business license
4. ID and Address proof of company and directors
5. Void Check/Letter of good standing

Hope this helps. Happy Processing.

[kjproweb]

Hi Connie,

Credit Card Processing Solutions (a merchant account) for Sellers of CBD Products
April 25, 2019

I'm delighted to share this very good news. The President of a well known, global credit card processing company successfully put in place two US-domestic banks who are willing to support online sellers of hemp-based CBD products with credit card/debit card processing services. This is not a typo.

In other words, we have two strong domestic banks willing to underwriting credit credit card processing for online sellers of hemp-based CBD products.

• Discount rate of 2.25% (above Interchange) + $.20 cents per transaction
• New start-up CBD companies or sole proprietorships gladly accepted
• All major credit card brands (Visa, Mastercard, AMEX & Discover Card)
• No "rolling reserve hold" on a percentage of your sales revenue 
• No restrictions or limit on daily or monthly dollar sales volume
• Next day deposit of funds on transactions from the previous day

The application process is very simple and straightforward. Again, these are US-domestic banks, not risky off-shore deals.

It takes approximately 3 to 5 days for underwriting to approve and activate your account. Simply call or send an email requesting an application.  You will not be disappointed.

Contact Kevin James at (303) 257-4484.

Email: kevin@kjproweb.com

[go_big]

In my search for a friend, I came across www.cannacardpayusa.com .

[RuthAdekoya]

Hi Joey, 

I am currently in the process of setting up my store on Shopify to sell CBD products.  I am also based in the UK.  I was hoping to use PayPal to process payments but this is not an option.  Which payment gateway/merchant do you use?

Ruth 

[go_big]

Authorize.net and NMI are the gateways. However it will be difficult for you to find processing in the USA if you are domiciled in the UK.

[Cannaveral]

Website doesn't work anymore. Try EMB 

[kjproweb]

Breaking News | September 28, 2019

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

The wait is over. The struggle is over. This is fresh news as of today.

• 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 getting applications submitted, I'll gladly do it.

Happy Selling,

Kevin James

(303) 257-4484

A Shopify Approved Partner & Certified Full-Stack Web Developer

[kjproweb]

Breaking News

September 28, 2019

RE:  Struggles of the past are over. A Shopify approved credit card processing solution for CBD sellers is finally here.

Just a few days ago, the company I represent became an official Shopify Payments Partner. I am an authorized 'Referral Partner' for a trusted global payment processor.

We offer full-scope credit card & debit card payment processing services to businesses and entrepreneurs that sell legal hemp-derived CBD products. This includes; CBD oils, tinctures, CBD topical creams, gummies, and soft gel tablets. You must have lab test documentation proving the product contains less than 0.20% THC by weight volume. *No vapes, no flower, no pre-rolls allowed.

The rates are excellent. There is no application fee. It takes an average of two or three days to get approved. After submittingan application for service, providing the requirement documentation, and getting approved for a merchant account, service can be activated from inside of your Shopify account dashboard. It doesn't get better than that.

Just send me an email or call and I'll get you an application for service.

Happy Selling,

Kevin James

(303) 257-4484

kevin@kjproweb.com

A Shopify Approved Partner & Certified Full-Stack Web Developer

[kjproweb]

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.

https://www.fda.gov/news-events/public-health-focus/fda-regulation-cannabis-and-cannabis-derived-pro...

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 benefit/health claim must be removed from your website and promotional literature.
• If you have online blog content that purports unsubstantiated medical claims or 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.']

BOTTOM LINE

Make the necessary adjustments to your website content to comply with the rule of law. I strongly suggest that you do it now to avoid unexpected or unannounced termination of your merchant account. It happens everyday. Providing e-commerce solutions for the hemp-CBD industry is what I do everyday, all day 365.  Consider yourself informed.

Kevin James

Shopify Approved partner | Expert Developer

ISO representing multiple payment processors

kevin@kjproweb.com | 818-850-1034