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Understanding the Changes to CBD & Banking

CBD industry banking Sana CBD
CBD industry banking Sana CBD

Hemp is not an easy crop to work with or an easy market. Many aspects of the CBD industry still have small road blocks that have to be overcome from time to time. Despite the overwhelming progress and support that has been shown for the products, this road block is a little tricky.

The most used U.S payment processor is backing out of the CBD industry.

We are not alone in this. Many CBD companies, including us, have lost the ability to process payments which makes selling online impossible. Our team is hard at work trying to answer any requests and want to keep an open channel and supply to those who need it. Our hope is that this move to a new processor will be without any bumps but it looks like there may be a small window during which we will not be able to process. As of May 15th, all CBD accounts using this processor will be terminated.

Even though this industry has its ups and downs, it’s rewarding for us because we get to watch all of you grow and see what works for you. To win your trust back, we will be sending out a 25% off code as soon as we are back up and running.

05/16/19 Update: Our merchant processor, Elavon, has extended the termination date for CBD accounts to June 1. This means that we can continue to sell online while we finalize alternative options.

Why are payment processors changing their tune on CBD?

In the end, many banks didn’t have the proper vetting process for new merchants. This made the number of chargebacks an issue for banks. Some merchants were also selling products that were above the Federal government’s legal limit of 0.3% THC in hemp based products. Once this came to light, they understandably decided to walk away from working with CBD companies.

We are hoping with new information and a little bit of time, we can be back up and running to help you with a reliable source of CBD products. We are going to make sure to keep you in the loop as progress is made and new solutions are found!

For more information, don’t hesitate to contact customer service!