Close Menu
Exposed News

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot
    Eve Plumb Net Worth

    Eve Plumb Net Worth 2025 – How Rich Is The Brady Bunch Star?

    October 28, 2025
    oil in hair

    Understanding the ideal duration for leaving oil in hair

    October 27, 2025
    First-Time Landlords

    Top Tips from Manchester Letting Agents for First-Time Landlords

    October 22, 2025
    Facebook X (Twitter) Instagram Threads
    Subscribe
    Exposed News
    Login
    • Breaking News
    • Fashion News
    • Movies
    • Trending Topics
    • Exposed Magazine
    • Celebrities News
    Wednesday, October 29
    Exposed News

    Demystifying Payment Processing in the Cannabis Industry

    Exposed NewsBy Exposed NewsJuly 26, 2025 Exposed Magazine
    Share
    Facebook Twitter Pinterest Threads Bluesky Copy Link

    Unraveling the Complexities of Cannabis Transactions

    The world of payment processing is inherently complex, a complexity that’s magnified within the cannabis industry—a sector synonymous with regulatory ambiguity. This blog aims to unravel the intricacies that cannabis businesses face, particularly in online payment processing, and to clarify the term “Cannabis Space” as encompassing the entire industry, from those handling the plant directly to ancillary service providers.

    A New Era for Hemp and CBD

    The 2018 Farm Bill heralded a new age, particularly for CBD, categorizing any cannabis product with 0.3% THC or less as hemp, thus distinguishing it from marijuana—a Schedule I substance. This reclassification has ostensibly made CBD as lawful as dairy on a federal scale, allowing certain players to offer their products nationally and accept credit cards for payment.

    Credit Card Processing: A Cautious Progression

    Despite the liberalization, Acquiring Banks—the institutions providing merchant accounts for credit card transactions—have largely approached CBD retail with caution. CBD is still deemed high risk, and only a select few banks have engaged with the market after four years.

    Banking Jargon Decoded: Acquiring Banks vs. Issuing Banks

    Understanding merchant processing requires differentiating between two types of banks: Acquiring Banks, which provide merchant accounts, and Issuing Banks, which offer payment cards to consumers. A bank offering you a Visa card is an Issuing Bank, though it may also serve as an Acquiring Bank.

    Navigating ‘High-Risk’ Waters

    The ‘high-risk’ label attached to CBD by card associations such as Visa and MasterCard means that Acquiring Banks, which are risk-averse by nature, are hesitant to engage. This stems from a higher perceived risk of fraud or chargebacks associated with CBD products.

    Legal Nuances and Compliance Challenges

    For banks, the legality of boarding cannabis merchants is fraught with legal complexities. Selling products with just a hair over 0.3% THC can lead to severe federal penalties, while staying under that threshold is entirely legal. Banks depend on third-party lab reports to ensure legality, a reliance that introduces a significant degree of risk.

    The Bank’s Dilemma: Understanding Lab Reports

    Bank underwriters often find themselves in a quandary when assessing the THC content on Certificates of Analysis (COAs). While federal law and judicial rulings have affirmed that only the Delta-9 THC content is relevant, inconsistencies in COA presentations and a lack of standardized templates can lead to confusion and caution.

    Advice for CBD Companies Seeking Payment Processors

    For CBD businesses, differentiation between federally legal hemp and illegal marijuana products must be crystal clear. By adhering to Visa and MasterCard’s high risk merchant registration processes and maintaining comprehensive and up-to-date lab reports, companies can streamline the underwriting process for Acquiring Banks.

    Conclusion: Charting a Path Forward

    The payment processing landscape for the cannabis industry remains a maze of regulations and standards. CBD companies must navigate these with diligence and transparency to partner effectively with financial institutions. As the industry grows and the rules evolve, clarity and compliance will be the keys to unlocking the full potential of cannabis e-commerce.

    Share. Facebook Twitter Pinterest Bluesky Threads Tumblr Telegram Email
    Previous ArticleThe History and Significance of World Book Day: A Celebration of Literature
    Next Article Dr. Aaron Wohl: A Visionary in Healthcare
    Exposed News
    • Website

    Exposed News is an independent digital publisher covering celebrity gossip, trending stories, and entertainment insights. Our editorial team is committed to fact-checked, reader-friendly updates that balance accuracy with engaging storytelling. With expertise in media and digital trends, Exposed News delivers trustworthy content that keeps you informed and entertained every day.

    Related Posts

    Mastering No Deposit Bonuses: A Comprehensive Guide for Singaporean Gamblers

    July 26, 2025

    How Can Equity Holding Help in Wealth Accumulation?

    July 26, 2025

    The UK Job Market Uncovered: Trends and Opportunities for 2024

    July 26, 2025
    Top Posts
    Meghan Markle

    Is Meghan Markle Pregnant Right Now

    October 22, 2025557 Views
    anya taylor-joy

    Anya Taylor-Joy Movies, Career, and Life Story

    October 22, 2025481 Views
    Fashion Stylist Guide 2025

    How to Become a Fashion Stylist Guide 2025

    October 21, 2025470 Views
    Don't Miss
    Eve Plumb Net Worth

    Eve Plumb Net Worth 2025 – How Rich Is The Brady Bunch Star?

    By Exposed NewsOctober 28, 2025 Celebrities News

    Eve Plumb is a name you probably recognize from your childhood television memories. If you…

    oil in hair

    Understanding the ideal duration for leaving oil in hair

    October 27, 2025
    First-Time Landlords

    Top Tips from Manchester Letting Agents for First-Time Landlords

    October 22, 2025
    Meghan Markle

    Is Meghan Markle Pregnant Right Now

    October 22, 2025
    Top Trending
    Most Popular
    Alaska Flood Disaster 2025

    Alaska Flood Disaster 2025: Homes Swept Away, Dozens Rescued After Typhoon Halong Remnants

    October 13, 2025283 Views
    Our Picks

    How To Avoid Losing Money When Trading?

    July 26, 2025

    What Stocks Should You Invest In 2024?

    July 26, 2025

    Openhouseperth.Net Insurance: Build Your Own Home Fort! ️

    July 26, 2025
    Editorial Credit

    All content on Exposed News is verified and written by our editorial team to maintain factual accuracy and reliability. We bring you trusted updates on breaking news, celebrity gossip, fashion trends, and entertainment stories from around the world.

    For collaborations, tips, or inquiries, contact us at officialtalkseo@gmail.com

    Stay informed. Stay curious. Stay connected with Exposed News — your source for real stories and viral culture.

    Facebook X (Twitter) Instagram Pinterest
    • About
    • Privacy Policy
    • Contact us
    © 2025 ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.

    Sign In or Register

    Welcome Back!

    Login to your account below.

    Lost password?