Post date: 6/22/2018

Cannabidiol (CBD) has gained popularity over the years for medical and other applications. However, the critical legal landscape surrounding the industry makes it important for CBD merchants to always proceed with caution. Below are some important points to keep in mind when operating a CBD business.

1. Identify the source of CBD and lab test your CBD products

Know the source from which marijuana is procured and comply with the concerning law.

  • If you are selling across state lines or stores that are not licensed to sell marijuana; ensure that your product is either derived from industrial hemp or from portions of the cannabis plant exempt from the Controlled Substances Act (CSA) definition of “marijuana.”
  • If you are using industrial hemp, ensure that the cultivator has licensed from a state in which an agricultural pilot program in compliance with Section 7606 of the 2014 Farm Bill has been implemented.
  • If you are using exempt plant material, verify that the product was derived from mature stalks or seeds incapable of germination, as those sections are specifically exempted from the CSA.

2. Monitor the distribution of CBD product.
It is important to track where your products are being distributed and to inform your potential customers that they too must monitor the State law. This will protect your products from being seized and, company and stakeholders facing criminal sanctions.

3. Smart labeling and marketing of CBD products.
Your CBD products will be subject to FDA drug regulations if they make health claims. In addition, advertising and the claims you make about your CBD products are very important when it comes to applying for a credit card processing solution, as making claims of any nature (not just about health benefits) essentially makes your business more vulnerable to credit card disputes and chargebacks.

4. CBD Credit Card Processing.
Even though CBD merchants run perfectly legal businesses, it remains a challenge to secure a merchant account to accept electronic payments. There are several factors that contribute to the success of you securing and maintaining a credit card processing solution for your business, whether that being in-store transactions or online transactions. At Paybotic, our payment professionals work closely with you from the get-go to help you implement solution(s) that best fit your CBD business needs.


Interested in credit card processing for your CBD business?
Call us at (844) 420-4729 or Leave us a message

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