Kratom is an alternative treatment for chronic pain and mood disorders. Kratom products help to reduce pain and may bring on euphoria.
However, merchants are still faced with added difficulties as the federal government regulates this industry strictly.
Is It Legal To Sell Kratom?
There is minimal research being done about the safety of Kratom as the plant is native to Southeast Asia. It is also difficult to measure the effect of a given dose, as the amount of active ingredients in Kratom plants varies greatly. Because of this, the DEA has considered placing Kratom on the list of schedule I drugs.
Therefore, many banks and payment processors consider Kratom as a high-risk industry. This development has made the online selling of Kratom more complex, and it’s only legal to sell Kratom in some states, not in others.
Why is kratom a High-Risk Business?
Besides the strict regulations from the federal government, the Kratom industry usually has higher than average chargeback ratios than the others. For example, if consumers claim they are disappointed about Kratom products and want to get refunds, but the merchants don’t want to return the money for some reason. Then the consumers can call their issuing bank and get the chargebacks, which increases the merchant chargeback ratios. Therefore, the merchants should have a simple and highly liberal return policy to avoid a chargeback. However, you can recover these losses in the long run and find it worth the expense.
Kratom Merchant Account
Because of the legality of the products, it isn’t easy to get a Kratom merchant account. However, as long as the business is in a legal state to sell Kratom-related products, Kratom merchants can find solutions and high-risk payment processors, which can approve Kratom merchants to process payment.
Kratom Credit Card Processing
As Kratom is considered a high-risk business, it is difficult for startups or merchants with low monthly processing volumes to establish credit card processing. Therefore, the largest of merchants are usually considered for a sponsored Kratom credit card processing account.
However, the merchants must be cautious because their card payments could be closed at any time. The main reason is that many payments processors set up Kratom accounts by miscoding the merchants. This action produces risk for Kratom merchants as their accounts can be terminated and their funds can be frozen.
As a result, merchants need high-risk payment processing solutions to sell Kratom products online or in-store. Luckily, there are Kratom payment solutions on the market. However, the high-risk label Kratom products currently hold, limits the payment acceptance options.
The benefits of Kratom Credit Card processing
- Increase sales by up to 35% by offering different payment options.
- FDIC Insurance for all payments
- Guaranteed same day funding
- Works with both Retail and ECommerce
- Cash discount program compatible
Open your Kratom Merchant Account Today!
IPP has several solutions that offer Kratom merchant accounts. We help you from the beginning all the way through the process to collect the underwriting documents and get approved to process card payments.
Contact us today and get a free cost analysis to see what we can help you.