Solutions to Financial Bummers in the Hemp Industry

It has happened to almost every hemp associated business I have known. Conspiracy theorists speculate that it is an event happening to limit competition by suppressing small businesses. With most big name financial institutions refusing to enter the cannabis industry, reasoning that they can not take on such large risks, what are your options? Rejection is bad enough, now this has led to a number of smaller name branches capitalizing on this effect and taking advantage of business owners by charging astronomical prices. This conundrum is making consumer research a must! Don’t get your panties in a bunch yet, there are many businesses that have been categorized as high risk so take a deep breath, flex those wallets and follow their lead. You may say but wait, I thought the Farm Bill promised to make things easier? 1. Federal regulation will not fully go into effect until those regulations have been fully developed. On March 13, 2019 the USDA had a zoom meeting in which this issue and many others were brought to their attention. 2. The cannabis market is unstable and ever changing, prices shift daily. 3. Financial institutions fear shady characters that may commit tax fraud or transaction laundering.

So what are some of the solutions?

-On April 8, 2019 Mitch McConnell has offered to resolve “glitches” in the industry including banking by proposing new legislation.

-Elavon has also re-established themselves in the market and are now reinstating some closed accounts that are willing to pay the fees they propose.

Some things you should consider.

-What industries do banks consider high risk?

-If you have a business and suddenly want to start selling CBD products, you may be in violation of your merchant agreement and end up in the ‘TMF’ terminated merchant file. For instance, Dr. Feelgood decides he wants to add CBD to make everyone feel good. Red flag, Dr. Feelgood may end up on the TMF if he doesn’t consult his current service provider because his current plan does not cover CBD.

-Most of the “CBD Merchants” have not been in business long, so make sure you do your homework when investigating options. You can not read enough reviews. I read reviews for fun.

-Look into solutions other high risk industries have such as; adult content, e-cigarettes, online pharmacies and multilevel marketing agencies. P.S. there are a ton of industries considered high risk so don’t fret and don’t be ashamed. Think of it as a badge of honor or a right of passage. You’re in the CBD biz man!

Merchant account services

You may have already tried these but for those who haven’t you could start here. Like anything else the time you spend researching will directly effect your outcome. Hope this is helpful. The button below will give you a list of a top 30 ranking and I have broken down 3 of those that have consistently been listed on multiple merchant service reviews.

Payline Data

-highly ranked

-Interchange = 0.25-1.9% + $0.10 Monthly = $10

-Contract = 3 yr. = processing limit is case by case

-Approval Speed = 2-3 days


-accepts wider variety of clients

-Interchange = 1-1.5% + $0.15 Monthly = $30-50 (free quote, prices may vary)

-Contract = dependent on the policy of partner bank

-Approval Speed = 2-3 days


-claims to accept everyone

-Interchange =   3-4% + $0.25  Monthly = $30-50

-Contract = 1yr = $25/mth

-Approval Speed = 2-3 days

Paige ThompsonComment