You may have found that cannabis dispensaries do not accept credit cards. With a couple of exceptions, the majority of dispensaries don’t accept debit cards, either. That’s because the major debit card companies are strictly prohibited from processing cannabis-related deals using their cards. Online payment processors also decline to allow their services to be used for cannabis products. To remain in the business, dispensaries and online CBD merchants are beginning to accept cryptocurrency payments mode.
CBD isn’t psychedelic, so what’s the problem?
CBD originated from the cannabis plant, however, it’s stemmed from hemp, not marijuana. People use the words cannabis and marijuana interchangeably. However, they’re not the same. Cannabis is a species of plant, while marijuana and hemp are two different varieties of cannabis.
Unlike the marijuana plant, hemp naturally contains a trace amount of THC. CBD products like gummies and oils that contain no more than 0.3% THC. They are federally legal, which makes the situation the more aggravating.
It’s everything about avoiding liability
The factor payment processing companies won’t process cannabis payments. The Farm Bill made hemp-derived CBD legal. There are stiff charges for manufacturers producing products with high levels of THC. But the CBD industry is mainly unregulated.
With the CBD industry being unregulated, debit card businesses and online payment processors might end up named in a lawsuit if they process payments for prohibited products. The other issue is that marijuana is only legal at the state level in specific states. It’s not federally legal. Because marijuana and CBD are frequently offered in the same shop, payment processors don’t want to risk processing payments for a controlled substance.
The problem with accepting cryptocurrency payments
The cryptocurrency appears like a great alternative for CBD businesses. It’s confidential, for starters. Cryptocurrency is commonly popular and simpler than ever to buy. Nevertheless, there’s a dark side to accepting crypto payment that makes running a CBD business more complex and expensive: cryptocurrency taxes.
Despite problems, CBD entrepreneurs are committed
Many individuals depend on CBD for relief from anxiety, tension, pain, and sleeping disorders. Company owners know this and are devoted to providing access to their products.
Given that the market is unregulated, many companies get away with making false claims. They make false claims about the CBD material of their products. Reputable companies handle the expenditure of laboratory testing. This ensures quality and potency. Companies selling CBD-infused topical products rarely provide laboratory results. CBD body lotion appears to be a popular product. There isn’t a lab report to validate the quantity of CBD in the product.
Are CBD companies stuck with paying more fees for relying entirely on cryptocurrency for payments? The safe banking act would make it legal for the bank to work with licensed cannabis clients.
Many thanks for reading this article. I hope you find this article useful.
