Difficulties in Integrating CBD Payment Gateway

▤ Summary

And that could soon rise sharply, in part because of recent changes in federal law that allow U.S. farmers to grow hemp legally. The growing awareness amidst people and the legalization has changed the fortune of companies as CBD sales are expected to rocket to $20B by 2024. Especially, the problem with setting up a payment gateway for a CBD online store comes with a few complications, as some popular portals don’t agree to the terms. “Cannabis dispensaries and related businesses,” “products and services with varying legal status on a state-by-state basis,” and “products that make health claims that have not been approved or verified by the applicable local and/or national regulatory body.” Square, another company which provides PoS and credit card processing, also majorly restricts CBD products, as they said in January 2019: “CBD and Hemp products are still not supported on Square’s platform due to the obligations we have with card networks, and other financial institutions.” However, in May 2019, Square started to work with a few CBD Merchants to come up with an optimal solution, and all one can expect is more legal clarity so that many more payment gateways join the fray in scaling up the CBD economy. The list is endless, and just like any other industry, the day is not so far off before CBD companies conquer the tech space by making their products available online.

▦ Linked Companies

DCKAP

$10M to $25M