US Domestic Payment Processing for Hemp-Derived Products

January 1, 2020

US Domestic Payment Processing for Hemp-Derived Products Is Here

In partnership with a Merchant Service Provider (MSP) and Two US Domestic FDIC Insured Banks, we now offer a complete merchant processing solution for Hemp-Derived CBD Business Owners.

Our unique program supports all credit card brands: Visa, MasterCard, AMEX, and Discover, Utilizes proven and reliable gateways Authorize.net and NMI Gateway, has no painful 10% 180 Day rolling reserves, and you can expect to see your settlement of funds within 48 hours. There is no annual contract, no early termination fee, only a requirement to process a minimum of $100 per month. And retails stores can now use swipe terminals with built-in printers.

Follow this program's guidelines and regulations to get your application approved by underwriting in less than seven days.

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Online and In-App

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In-Person / Retail

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Mobile Payments

Start Your Application

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Hemp-Derived CBD Product Lists

Our banks and legal team have reviewed all government regulations and are pleased to allow the following hemp-derived CBD products to be sold through your business.

Approved Products

〉Hemp-Derived Flower
〉CBD Oils & Tinctures (Human)
〉CBD Oils & Tinctures (Pets)
〉CBD Topical Creams
〉CBD Salves and Rubs
〉CBD Gummies
〉CBD Beverages
〉CBD Vapes
〉CBD Terpenes
〉CBD Infused Skincare & Beauty Products
〉CBD Capsules
〉CBD Bath Bombs

Conditional Products

〉Glass, Pipes, Vape Hardware

Not Approved

〉Kratom
〉Cannabis / Marijuana
〉Cannabis Novelty & Hemp Seeds
〉CBD Infused Food
〉CBD Infused Meals, CBD Infused Snacks
〉Products marketed as "Dietary Supplements" or "Nutritional Supplements"
〉Recreational Drug Paraphernalia

Pricing

Three things to know about our pricing

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  1. Consistent Rates

    Just provide us with what software and hardware that you are using and we'll provide a rate that's fair.

  2. Transparent Pricing

    Forget the complicated bills to read at the end of the month. You can see your transactions through your merchant dashboard in real-time.

  3. Flate rate for all cards

    No different rates for different card brands. Visa, MasterCard, American Express, Discover, and Rewards Cards are all the same.

Competitive payment processing
rates for Hemp-Derived CBD businesses

Online and In-App


4.95% + $0.25

Per Transaction (Domestic)

Additional Fees:

+ $45 Monthly Gateway & Support Fee
+ Authorize.net or NMI Gateway charges $0.19 per transaction

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In-Person


3.95% + $0.25

Per Transaction (Domestic)

Additional Fees:

+ $45 Monthly Gateway & Support Fee
+ Authorize.net or NMI Gateway charges $0.19 per transaction

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Mobile


4.95% + $0.25

Per Transaction (Domestic)

Additional Fees:

+ $45 Monthly Gateway & Support Fee
+ Authorize.net or NMI Gateway charges $0.19 per transaction

APPLY NOW

Custom pricing packages may be available for large businesses depending on payment volume, average transaction volume, processing history, and more. Set up a meeting to have a conversation about it. Contact Concierge Director.

Website Compliance

Your website must be in compliance with bank underwriting requirements prior to submitting an application for service. These are the requirement for website compliance.

COA Batch Database

〉COA Batch Database Page that outlines all third-party COA's.
〉COA Product Lab Result List that lists all third-party COA's per product

FDA Compliance

〉FDA Short Disclaimer found in the footer of all pages.
〉FDA Long Disclaimer found with Legal Documents

Product Description

〉All product ingredients must be published
〉Hemp-Derived CBD cannot be marketed as a dietary supplement or a drug. For this reason, the sponsoring banks require that any instructions regarding 'suggested use' or 'recommended dosage' must be removed from the website and replaced with copy such as: "This product is non-toxic, contains no psychoactive substances, is incapable of causing a euphoric high, and is safe for humans or pets if ingested orally."

Legal Documents

〉Privacy Policy that outlines your data collection practices
〉Terms and Conditions that establishes user guidelines and safeguards your business
〉Returns and Shipping Policy that appeases your customers and protects your business.
〉Disclaimer Policy to avoid copyright infringement and intellectual property disputes. Includes a long-form FDA disclaimer.
〉Valid SSL Security Certificate

Age Gate

There must be an age-gate based on your states attorney general guidelines to make a purchase.

Medical or Therapeutic Claims 

No website content shall include CBD as a possible treatment, cure or remedy for any health challenge is allowed. For example sleep disorder, anxiety, pain, sore muscles, aids, cancer, erectile dysfunction, menstrual cramps, etc..

Product Photos

No images of marijuana plants, bud/seed, or pre-rolled joints.

Website Builders

This solution supports WooCommerce, Shopify, 3D Cart, OpenCart, PrestaShop, Squarespace, Volusion, Weebly, ZenCart, Big Commerce, osCommerce, PinnacleCart, Typo3, and many more.

FDA Rules and Regulations

FDA recognizes the potential opportunities that cannabis or cannabis-derived compounds may offer and acknowledges the significant interest in these possibilities. However, FDA is aware that some companies are marketing products containing cannabis and cannabis-derived compounds in ways that violate the Federal Food, Drug and Cosmetic Act (FD&C Act) and that may put the health and safety of consumers at risk.

Click To Review 15 CBD Brands That Were Sent FDA Violation Warnings
Click To Review FDA Regulation of Cannabis and Hemp-Derived Products

When it comes to your processing approval, here are the most important things our underwriting team reviews:

  • Can CBD be sold as a dietary supplement?

    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)]]]]]. Under that provision, if a substance (such as THC or CBD) 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 has been authorized for investigation as a new drug for which substantial clinical investigations have been instituted and for which the existence of such investigations has been made public, then products containing that substance are excluded from the definition of a dietary supplement. FDA considers a substance to be "authorized for investigation as a new drug" if it is the subject of an Investigational New Drug application (IND) that has gone into effect. Under FDA’s regulations (21 CFR 312.2), unless a clinical investigation meets the limited criteria in that regulation, an IND is required for all clinical investigations of products that are subject to section 505 of the FD&C Act.

    There is an exception to section 201(ff)(3)(B) if the substance was "marketed as" a dietary supplement or as a conventional food before the drug was approved or before the new drug investigations were authorized, as applicable. However, based on available evidence, FDA has concluded that this is not the case for THC or CBD.

    FDA is not aware of any evidence that would call into question its current conclusions that THC and CBD products are excluded from the dietary supplement definition under section 201(ff)(3)(B) of the FD&C Act. Interested parties may present the agency with any evidence that they think has bearing on this issue. Our continuing review of information that has been submitted thus far has not caused us to change our conclusions.

    When a substance is excluded from the dietary supplement definition under section 201(ff)(3)(B) of the FD&C Act, the exclusion applies unless FDA, in the agency’s discretion, has issued a regulation, after notice and comment, finding that the article would be lawful under the FD&C Act. To date, no such regulation has been issued for any substance.

    Ingredients that are derived from parts of the cannabis plant that do not contain THC or CBD might fall outside the scope of this exclusion, and therefore might be able to be marketed as dietary supplements. However, all products marketed as dietary supplements must comply with all applicable laws and regulations governing dietary supplement products. For example, manufacturers and distributors who wish to market dietary supplements that contain "new dietary ingredients" (i.e., dietary ingredients that were not marketed in the United States in a dietary supplement before October 15, 1994) generally must notify FDA about these ingredients (see section 413(d) of the FD&C Act [[[[[21 U.S.C. § 350b(d)]]]]]. Generally, the notification must include information demonstrating that a dietary supplement containing the new dietary ingredient will reasonably be expected to be safe under the conditions of use recommended or suggested in the labeling.  A dietary supplement is adulterated if it contains a new dietary ingredient for which there is inadequate information to provide reasonable assurance that the ingredient does not present a significant or unreasonable risk of illness or injury (see section 402(f)(1)(B) of the FD&C Act [[[[[21 U.S.C. 342(f)(1)(B)]]]]]).

    Numerous other legal requirements apply to dietary supplement products, including requirements relating to Current Good Manufacturing Practices (CGMPs) and labeling. Information about these requirements, and about FDA requirements across all product areas, can be found on FDA’s website.

  • 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)]]]]], 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. There are exceptions, including when the drug was marketed in food before the drug was approved or before the substantial clinical investigations involving the drug had been instituted or, in the case of animal feed, that the drug is a new animal drug approved for use in feed and used according to the approved labeling. However, based on available evidence, FDA has concluded that none of these is the case for THC or CBD. 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. FDA is not aware of any evidence that would call into question these conclusions. Interested parties may present the agency with any evidence that they think has bearing on this issue. Our continuing review of information that has been submitted thus far has not caused us to change our conclusions.

    When this statutory prohibition applies to a substance, it prohibits the introduction into interstate commerce of any food to which the substance has been added unless FDA, in the agency’s discretion, has issued a regulation approving the use of the substance in the food (section 301(ll)(2) of the FD&C Act [[[[[21 U.S.C. § 331(ll)(2)]]]]] To date, no such regulation has been issued for any substance.

    Ingredients that are derived from parts of the cannabis plant that do not contain THC or CBD might fall outside the scope of 301(ll), and therefore might be able to be added to food. For example, as discussed in Question #12, certain hemp seed ingredients can be legally marketed in human food. However, all food ingredients must comply with all applicable laws and regulations.  For example, by statute, any substance intentionally added to food is a food additive, and therefore subject to premarket review and approval by FDA, unless the substance is generally recognized as safe (GRAS) by qualified experts under the conditions of its intended use or the use of the substance is otherwise excepted from the definition of a food additive (sections 201(s) and 409 of the FD&C Act [[[[[21 U.S.C. §§ 321(s) and 348]]]]]). Aside from the three hemp seed ingredients mentioned in Question #12, no other cannabis or cannabis-derived ingredients have been the subject of a food additive petition, an evaluated GRAS notification, or have otherwise been approved for use in food by FDA.  Food companies that wish to use cannabis or cannabis-derived ingredients in their foods are subject to the relevant laws and regulations that govern all food products, including those that relate to the food additive and GRAS processes.

  • What is FDA’s position on cannabis and cannabis-derived ingredients in cosmetics?

    A. A cosmetic is defined in 201(i) as "(1) articles intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise applied to the human body or any part thereof for cleansing, beautifying, promoting attractiveness, or altering the appearance, and (2) articles intended for use as a component of any such articles; except that such term shall not include soap."

    Under the FD&C Act, cosmetic products and ingredients are not subject to premarket approval by FDA, except for most color additives. Certain cosmetic ingredients are prohibited or restricted by regulation, but currently that is not the case for any cannabis or cannabis-derived ingredients. Ingredients not specifically addressed by regulation must nonetheless comply with all applicable requirements, and no ingredient – including a cannabis or cannabis-derived ingredient – can be used in a cosmetic if it causes the product to be adulterated or misbranded in any way. A cosmetic generally is adulterated if it bears or contains any poisonous or deleterious substance which may render it injurious to users under the conditions of use prescribed in the labeling, or under such conditions of use as are customary or usual (section 601(a) of the FD&C Act [[[[[[[[[[[[[[[[[[[[[21 U.S.C. § 361(a)]]]]]]]]]]]]]]]]]]]]]).

    If a product is intended to affect the structure or function of the body, or to diagnose, cure, mitigate, treat or prevent disease, it is a drug, or possibly both a cosmetic and a drug, even if it affects the appearance. (See Question #3 for more information about drugs.) 

    FDA can take action if it has information that an ingredient or cosmetic product is unsafe to consumers. Consumers can report adverse events associated with cosmetic products via the FDA’s MedWatch reporting system, either online or by phone at 1-800-FDA-1088, or by contacting your nearest FDA district office consumer complaint coordinator. For more information, please see the FDA’s webpage on how to report a cosmetic-related complaint.

  • Can I import or export cannabis-containing or cannabis-derived products?

    General information about the import/export of drug products regulated by FDA can be found online here. The Drug Enforcement Administration (DEA) is the federal agency responsible for enforcing the controlled substance laws and regulations in the U.S. and, as such, should be consulted with respect to any regulations/requirements they may have regarding the import or export of products containing cannabis. Please see here for information about importing or exporting food ingredients.

    Regarding imports, if it appears that an article is adulterated, misbranded, in violation of section 505 of the FD&C Act, or prohibited from introduction or delivery for introduction into interstate commerce under section 301(ll) of the FD&C Act, such article will be refused admission (see section 801(a)(3) of the FD&C Act [[[[[[[[[[[[[[[[[[[[[21 U.S.C. § 381(a)(3)]]]]]]]]]]]]]]]]]]]]]).

  • Is it legal for me to sell CBD products?

    It depends, among other things, on the intended use of the product and how it is labeled and marketed. Even if a CBD product meets the definition of "hemp" under the 2018 Farm Bill (see Question #2), it still must comply with all other applicable laws, including the FD&C Act. The below questions and answers explain some of the ways that specific parts of the FD&C Act can affect the legality of CBD products.

    We are aware that state and local authorities are fielding numerous questions about the legality of CBD. There is ongoing communication with state and local officials to answer questions about requirements under the FD&C Act, to better understand the landscape at the state level, and to otherwise engage with state/local regulatory partners.

  • Will FDA take action against cannabis or cannabis-related products that are in violation of the FD&C Act?

    A. The FDA has sent warning letters in the past to companies illegally selling CBD products that claimed to prevent, diagnose, treat, or cure serious diseases, such as cancer. Some of these products were in further violation of the FD&C Act because they were marketed as dietary supplements or because they involved the addition of CBD to food.

    When a product is in violation of the FD&C Act, FDA considers many factors in deciding whether or not to initiate an enforcement action. Those factors include, among other things, agency resources and the threat to the public health. FDA also may consult with its federal and state partners in making decisions about whether to initiate a federal enforcement action.

Brand New Startups

〉Must be no less than three months old at the time of submitting an application for a merchant account
〉Domain and business cannot have the words 'CBD" or 'HEMP'
〉Active bank account with no less than $2,500 for three months

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