The cannabidiol (CBD) market could reach $20 billion by 2024 according to new research done by cannabis researchers BDS Analytics and Arcview Market Research. As this market continues to grow and diversify into oils, candies, lotions and other products, so do the means by which it will be purchased. The general retail environment is looking to streamline CBD products, which means online sales will surge in the coming years. As many banks and processing solutions are still unclear on regulations and the legality of working with hemp products, it’s made it excessively difficult to find a reliable solution in an otherwise booming industry. Sharon Lampley, Mastercard Inc. Director of Acquirer Channel Management, emphasizes the need for payment providers to monitor merchants, what they’re selling and keeping consistent with current standards at this year’s Western State Acquirers Association conference.
Square has recently announced their emergence into the CBD market and has attracted many merchants due to it being a house-hold name in the low-risk payment processing sector. What many CBD merchants don’t realize is that CBD merchants who join Square “are responsible for their own compliance”, according to Square’s General Counsel and Corporate Secretary, Sivan Whiteley. Essentially, Square will hold the merchant responsible for any compliance issues that may occur while processing with them but won’t help with the merchant get compliant when onboarding. This can inevitably lead to sudden terminations or fines from the card brands and the FDA for many merchants who don’t have time to stay on top of the constantly changing regulations in this industry.
It’s important to partner with a processor that has been involved in the CBD industry and wants to help you succeed! T1 Payments has been dealing with CBD for over 3 years and has its own in-house compliance team included in its extensive list of services available to merchants. Our highly skilled compliance team is ever-evolving, including real-time updates to regulatory changes to ensure your continued compliance throughout the longevity of your account. Having your account actively monitored for compliance helps our merchants avoid terminations, avoids hefty non-compliant fines and allows you to focus on growing your business.
Whether you’re US-based or international, T1 Payments puts your business on a global payment platform that accepts over 169 currencies and pays you out in your local currency, to your bank account (US or international). An end-to-end solution to meet all your needs and adapts with you as your company grows – at one flat rate. To find out more about our customizable global payment solutions for CBD merchants – including active account monitoring for fraud, chargeback management, and live customer support agents – visit T1payments.com or call 1-866-518-2216.