Website compliance guidelines for CBD and Delta 8 sellers.

WEBSITE COMPLIANCE GUIDELINES

Website compliance guidelines for CBD and Delta 8 sellers.

Updated on November 30, 2022

If you are a business owner selling hemp-derived CBD, vape products, and minor cannabinoids, pay careful attention to these new bank and payment processor underwriting requirements. 

Five of the top US domestic banks and Merchant Services Providers shared these helpful tips with us approximately one year ago. 

Failure to comply with these best practices will slow down the merchant account application approval process or prevent you from getting credit card processing altogether.

Website store Age
Verification Gate

Use a software app or plugin to verify the legal age of website visitors prior to entry into your website or prior to purchase at the time of checkout.

website Contact Page must include a physical address and working telephone number

The contact page of the website must feature complete contact details. The contact page of your website must contain a a physical address, a telephone number (*Google Voice or a voicemail service is acceptable), and an email address.

VALID CERTIFICATES OF ANALYSIS (COAs)

Independent laboratory-issued certificates of analysis for each batch of CBD, delta-8/9 or kratom product sold must be published on the website.

Do not publish a product on the website as available for sale if a valid COA is not available for the product.

Restricted Delivery & Adult Signature Requirement

Federal law requires that upon delivery of delta 8 THC and/or vape products, the adult buyer must present proof of age, identity, and signature. If a buyer lives in a state where vape products are illegal, your online store should be configured to block purchase attempts. do not attempt to purchase them.

Reference Sources:

  • *https://www.findlaw.com/state/criminal-laws/vaping-and-e-cigarette-laws-by-state.html
  • **https://worldpopulationreview.com/state-rankings/delta-8-legal-states
  • ***https://vaping360.com/learn/countries-where-vaping-is-banned-illegal


    • UNSUBSTANTIATED HEALTH CLAIMS ARE STRICTLY PROHIBITED

    The Federal Trade Commission (FTC) and the Federal Drug Administration (FDA) strictly prohibit the advertisement of unsubstantiated medical claims. Any verbiage implying that the use of hemp-derived products can potentially; heal, cure, relieve pain or inflammation, alleviate stress, mitigate disease or ailments, MUST BE REMOVED.

    This federal requirement includes the use of customer testimonials alluding to the same.

    Password Accessible

    Even if your online store is not yet ready to actually sell products, must be inspected for compliance by Merchant Services Providers.

    It is NOT necessary that all products be listed or publish.

    At a minimum have at least 5 or 6 products ready for inspection. You must provide us temporary Username and Password access for inspection purposes.

    Published
    Policy Statements

    In the footer section of your website, Merchant Services Providers expect to find policy pages. These pages include;

  • Terms and Conditions of Use
  • Refunds Policy - *must clearly describe the terms and conditions upon which a refund will be approved, the method and time frame in which funds will be returned to the buyer.
  • Returns & Exchange Policy
  • Shipping & Delivery Policy
  • Privacy Policy
  • FDA Disclaimer / Disclosure Statement - publish the FDA disclaimer statement in the footer section of the website slightly above the copyright area.

    • As of March 1, 2023, several states have restrictions on the sale of vaping products, but it is unclear which states have banned ecommerce vape purchases. Massachusetts has temporarily banned the online sale of flavored nicotine products with a nicotine strength over 35mg[1].[2]Maryland has also temporarily banned the sale of flavored disposables. New Jersey has banned the sale of flavored nicotine products, including menthol and any nicotine-free items (excluding tobacco)[3]. New York prohibits the online sale of any vaping products that contain liquid[4].
     
    San Francisco, California, has enacted a temporary ban on the sale of all vaping products[5]. Aspen and Boulder in Colorado have enacted a ban on the sale of flavored vaping products[6]. It is important to note that as laws and regulations regarding vaping are constantly changing, it is recommended to check with local authorities or consult with a legal professional for up-to-date information on state-specific restrictions related to vaping products.

    According to the regulations, the PACT Act has now been applicable to every vaping item.

    Any firm delivering packages of vaping goods over state lines is required to save every sales record and then transmit them to the tobacco taxation authority agencies in the area where the firm delivers the products. 

    Also, federal authorities have ordered the US Postal Service to carry out a ban on vaping goods deliveries to customers. This federal law applies to e-liquid, coils, tanks, and vaping devices.

    Apply for a merchant account

    Submit supporting documents with your merchant application

    Helpful Information
    1. Compile and upload all of the documents shown below into a Google Drive folder or Dropbox folder.
    2. Afterward, email to us a hyperlink to your stored documents. Our email address is: [email protected]
    • Voided Business Check with DBA or Legal Entity Name
    • Articles of Incorporation /LLC and signed By-Laws(Corps) or Operating Agreements(LLC) Unless signatory is the 100% sole owner.
    • Proof of EIN / Employer Identification Number. Send in a copy of the IRS letter featuring your EIN / Employer Identification Number. 
    • 3 months of business or personal bank statements.
    • 3 months of merchant processing statements - If the business has been or is currentlyy accepting credit card transactions.
    • Drivers License from all Owners/ Principal signers - Any company owner holding 10% of more ownership interest needs to be listed on application. Furthermore, those persons must send in a copy of their ID card.
    • Proof of Domain Ownership. Send in a copy of a receipt showing proof of payment or any document showing proof of ownership.
    • Drop Shipping Fulfillment Agreement or Pictures of Inventory. *Only if you are using a 3rd party fulfillment company for drop-shipping purposes is a copy of the agreement necessary.
    • COA (CERTIFICATE OF ANALYSIS) - for every product sold online. (All laboratory COAs provided must match the end product in its final state that is being sold on the website; not just the CBD isolate used to make the products. Testing needs to be completed by an approved and accredited third-party laboratory. COAs must show a full contaminant test was conducted, including Heavy Metals, Microbials, Pesticides, and Solvents (if applicable) for all products meant for human use. Not just THC levels. Even if your state does not require you to have a full spectrum test, if you are selling online to other states that do require it a correct test needs to be provided to meet the compliance as we default to the highest degree of standards).

    Helpful Tools (100% Free)

    See Our Fully Functional Demo Website in Action

    Do you sell CBD, Delta-8/9, Hemp Flower, Pre-rolls, or Kratom?

    Take a look at a fully functional demo website published on Shopify. We create customized payment capture forms on Shopify to help merchants reduce the risk of getting their website shut down for violating Shopify's terms of use policy.