Website compliance guidelines

Bank underwriters will inspect the merchant’s website to ensure strict compliance with major card brand policies relevant to the sale of hemp-derived CBD products—additionally, the US Food and Drug Administration (FDA), and the Federal Trade Commission (FTC) works in conjunction with the FDA, focuses on enforcing regulations against false or misleading advertising. 

Here’s a checklist of website compliance items. 

  1. Third-party independent laboratory certificates of analysis (COAs) must be posted on website product pages or published as a hyperlink to a COA database in the footer section of the website.
  2. The website must be live and published or accessible via username and password access shared with the bank underwriting team. 
  3. Pricing for all products must be posted on the website.
  4. Remove all false and misleading statements in advertising and marketing content. The FDA and FTC requires that:
    • All health claims about CBD products must be supported by competent, reliable, peer-reviewed scientific evidence.
    • Advertisers must avoid making unsubstantiated medical claims about CBD’s ability to treat or cure serious diseases.
    Both agencies have issued warning letters to CBD companies that violate these guidelines, emphasizing the need for sound scientific evidence to support any health-related claims.
  5. Contact Page – must disclose a contact phone, email, and mailing address. 
  6. Privacy Policy must be posted on the website  
  7. Refund/Return Policy must be posted on the website
  8. Shipping Policy must be posted on the website
  9. Terms and Conditions Of Use must be posted on the website.
  10. Visa and MasterCard logos together with other card brand logos must be visible in the footer of the website.

 

FDA DISCLOSURE STATEMENT – Must be published in the footer section of a website. Sample content is provided below.

The statements made regarding these products have not been evaluated by the Food and Drug Administration. The efficacy of these products has not been confirmed by FDA-approved research. These products are not intended to diagnose, treat, cure, or prevent any disease. All information presented here is not meant as a substitute for or alternative to information from health care practitioners. Please consult your healthcare professional about potential interactions or other possible complications before using these products. The Federal Food, Drug, and Cosmetic Act requires this notice.

website compliance guidelines 1

 

 

Our Sponsoring Banks Will Require Scanned Color Copies of The Following Documents

 

  1. Business License – issued from the applicant’s state of residency. *Also, include a copy of your Seller’s Permit or Tax Permit if applicable.
  2. Articles of Incorporation or Organization – Full articles must be submitted. Partially completed Articles are not acceptable).
  3. Operating Agreement (for LLCs only) or By-Laws if the entity is a Corporation.
  4. Letter from the IRS featuring your EIN (Employer Identification Number).  A copy of the letter must be submitted.
  5. 3 months of your most recent business bank statements – full bank statements required. *Bank underwriters evaluate risk based on customer returns and credit card chargebacks.
  6. 3 months’ most recent credit card processing statements – unless the business is a new startup.
  7. Copy of government-issued ID cards for all owners listed on the application
  8. Copy of URL domain ownership – proof that the applicant owns the target URL domain name where products are sold.
  9. Copy of a utility bill or lease agreement for the business address or operating address. *This is required to verify proof of address.
  10. Copy of a voided check or bank letter with the DBA or legal name of the business.

Submit The Following Documents With Your Merchant Application

Click here to apply for a merchant account

SERVICE DISCLAIMER & LIABILITY WAIVER: 

Under no circumstances does the submission of an application for a merchant account, payment of bank imposed fees (if any) or any other fees guarantee approval and issuance of a merchant account. By submitting this application, the merchant/business owner agrees and promises to hold ISO/sales agent harmless to the extent that the ISO/sales agent shall not be held financially responsible nor liable for any costs, fees, business expenses or any losses if an application for a merchant account is declined by sponsoring banks.

INDEMNIFICATION & WAIVER OF RISK & LIABILITY

Merchant/Applicant agrees to indemnify, defend, and hold harmless KJ Proweb, its officers, directors, agents, employees, and suppliers from and against any lawsuit, claim, liability, loss, penalty or other expense (including attorneys’ fees and cost of defense) they may suffer or incur as a result of (i) a bank, ISO/MSPs inability to deliver merchant processing services as described in an Enrollment Application for Service. This indemnification and waiver of liability include, but is not limited to (ii) unforeseen actions by a federal government agency that may place hemp-derived CBD products into a high risk or ‘prohibited category by major card brands, thus making it impossible to receive traditional merchant processing for the same. If you, the merchant/applicant do not agree with nor accept this Indemnification and Waiver of Liability in its entirety, do not apply for service.