Experience More Than Payment Processing

Credit card and debit cards gladly accepted through KJ Pro Web

Elavon Payments (A U.S. Bank Company)

TSYS (A Global Payments Company)

Company Overview

Elavon Payments

Elavon Inc. is a global payment processing powerhouse and subsidiary of U.S. Bancorp, recognized as the 4th largest credit card processor in the United States and a top-tier acquirer across Europe.

Serving over one million merchant locations in more than 30 countries, Elavon delivers comprehensive merchant services including credit and debit card processing, mobile payments, e-commerce solutions, and advanced gift card and loyalty programs.

The company’s commitment to excellence earned recognition from Forbes as one of the “10 Best Credit Card Processing Companies” in 2024, while maintaining an A+ Better Business Bureau rating and 24/7 customer support. With rapid funding capabilities (91% of merchants funded within 2 business days), robust security features including PCI compliance programs, and innovative solutions like Quick Capital for flexible business funding, Elavon empowers businesses of all sizes to accept payments seamlessly across all channels—in-person, online, by phone, and via mobile devices.

Value Proposition: Lightning-fast deposits, enterprise-grade reliability, and unwavering support from one of America’s most trusted financial institutions—delivering the payment infrastructure your business deserves.

Unique Selling Points:

  • Forbes-recognized industry leader backed by U.S. Bancorp’s stability and resources
  • 91% funding within 2 business days for optimal cash flow management
  • 24/7 multilingual customer support with dedicated account teams
  • Comprehensive payment acceptance across 30+ countries with unified reporting
  • Quick Capital funding in 1-2 business days with transparent, sales-adjusted payments
  • Advanced fraud protection, tokenization, and next-generation payment support (Apple Pay, Android Pay)

Call to Action: Transform your payment operations with Elavon’s award-winning platform. Contact us today for a complimentary savings analysis and discover how our enterprise-class solutions can reduce your processing costs while accelerating your cash flow. Get started at 1-866-671-1583 or visit elavon.com.

Company Overview

TSYS (Total System Services), now a Global Payments company, stands as the largest third-party payment processor for issuing banks in North America with a commanding 40% market share.

This industry titan processes over 35 billion transactions annually across 875 million accounts worldwide, delivering API-first, cloud-native payment solutions that power everything from origination to risk management.

TSYS serves financial institutions, fintechs, retailers, and businesses of all sizes with highly configurable platforms including MultiPASS gateway technology, WebPASS virtual terminal solutions, and specialized healthcare payment systems for HSAs, FSAs, and wellness programs.

With operations spanning 13 countries and decades of innovation since its 1959 founding, TSYS combines cutting-edge technology like microservice-enabled architecture with proven reliability, offering seamless integrations with leading e-commerce platforms, robust recurring billing capabilities.

Value Proposition: Unmatched scale meets infinite flexibility—harness the power of 35 billion annual transactions through endlessly configurable payment solutions that evolve as fast as your business grows.

Unique Selling Points:

  • 40% North American market share with proven enterprise-scale processing infrastructure
  • Cloud-native, API-first platform enabling rapid customization and integration
  • 24/7 U.S.-based technical support and merchant services assistance
  • Advanced B2B capabilities for commercial and purchasing cards with Level 2/3 data optimization
  • EnsureBill account updater reducing declined recurring transactions automatically
  • Comprehensive gateway solutions (MultiPASS, Authorize.Net) with hosted payment forms for maximum security
  • Healthcare industry specialization with dedicated HSA, FSA, and benefits administration platforms

Call to Action: Experience payment processing at global scale with local expertise. Partner with TSYS to unlock configurable solutions designed for your unique business needs. Request a consultation today and discover how our next-generation platform can transform your payment operations into a competitive advantage.

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CardX by Stax

CardX by Stax represents the revolutionary future of credit card surcharging, combining CardX’s industry-leading compliance automation with Stax’s powerful all-in-one fintech platform.

As the market leader in compliant surcharging solutions, CardX by Stax enables businesses to eliminate credit card processing fees by seamlessly passing costs to customers who choose to pay with credit cards, while offering debit as a no-fee alternative—ensuring full compliance with card brand rules, state regulations, and federal requirements.

Processing over $1 billion in transaction volume for thousands of merchants across retail, service industries, e-commerce, and professional services, this turnkey solution automates every aspect of compliance through intelligent card detection, transparent fee disclosure, and itemized receipts.

Recognized by U.S. News and World Report and Fortune as one of America’s fastest-growing fintech companies, the platform delivers true zero-cost credit card processing where selling $100 means receiving $100, backed by world-class customer service, PCI Level 1 security, and integration capabilities across online, in-person, and virtual terminal environments.

Value Proposition: Keep 100% of every credit card sale—when you sell $100, you receive $100. Revolutionary surcharging technology eliminates billions in interchange fees while delivering a transparent, customer-friendly payment experience.

Unique Selling Points:

  • 0% net cost credit card processing—businesses receive the full sale amount on every transaction
  • Automated compliance with state laws and card brand regulations across all 50 states
  • Intelligent debit card detection ensuring zero surcharge on debit transactions for full compliance
  • Landmark advocacy: Only solution provider to file amicus brief in U.S. Supreme Court surcharging case
  • Seamless omnichannel processing: in-person terminals, e-commerce integration, and virtual terminal
  • Transparent itemized receipts with automatic fee disclosure at point of purchase
  • Integration with Stax’s $23B+ processing ecosystem for unlimited scalability
  • Customer-friendly choice: cardholders always have debit as a no-fee payment option

Call to Action: Stop paying billions in unnecessary interchange fees. Join thousands of businesses using CardX by Stax to achieve 0% cost credit card processing with fully automated compliance.

Schedule your free consultation today and discover how much you could save while enhancing your customer payment experience. Transform your payment operations—visit cardx.com or call now to get started.

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Zero Cost/No Fee Processing (also called surcharging) is when the merchant passes credit card processing fees directly to customers who pay by card. The business pays nothing to accept cards because customers absorb the entire cost.

If the processing fee is 3%, a $100 purchase costs the customer $103 when paying by card.

Interchange Plus Pricing is a transparent fee structure where merchants pay the actual interchange fee (what the card-issuing bank charges) plus a fixed markup from their payment processor.

For instance, if interchange is 1.8% and the processor adds 0.3% plus $0.10 per transaction, that’s exactly what the merchant pays. This model is considered the most transparent because you can see the actual costs versus the processor’s markup, unlike bundled or tiered pricing where everything is lumped together.

Dual Pricing means the business posts two different prices: one for cash and one for card payments. You might see a sign saying “Coffee: $3.00 cash / $3.30 card.”

Customers know upfront due to clearly visible signage at checkout, they’ll pay slightly more for using a card, and the business uses that difference to cover processing fees.

Cash Discounting is when a business adds a service fee to all transactions but removes it if customers pay with cash.

For example, a $100 purchase might show as $103.50 at checkout, but drops to $100 if you pay cash. The extra charge covers the cost of accepting credit cards.

Increase Profitability by 100%

Only TSYS can handle over 32 billion transactions a year. By switching to our platform you’ll enjoy a cloud-native platform that brings you faster speed and substantially lower cost when selling goods and services. 

Major credit cards, debit cards and digital wallet solutions. By KJ Proweb

Blazing Fast  Approvals

  • A simple online application.

  • Same-day or next-day approvals.

  • Payment gateway activation for eCommerce stores 

  • Rapid underwriting, onboarding, and compliance assistance.

Sell Hemp-derived CBD, Vape & More

We've partnered with 30 of the largest and most trusted CBD-friendly sponsoring banks, fintechs, and ISOs in North America.

Take advantage of the absolute best rates, fees, point-of-sale equipment and the fastest application approval time in the industry.

eCommerce (Website) Transactions

Rates as low as 3.39% plus 0.25¢ per transaction

Click to View
Regulatory Compliance Guidelines

Our in-house underwriting team and sponsoring banks will inspect the merchant’s website to ensure strict compliance with major card brand policies relevant to the sale and shipment of hemp-derived CBD products. 

Additionally, all website content must comply with individual state law, and federal guidelines established by the Food and Drug Administration (FDA), and Federal Trade Commission (FTC).

Sign Up Here

Customer Present *Retail Transactions

3.49% plus 0.20¢ per transaction

Frequently Asked Questions

KJ ProWeb stands out from other high-risk payment processors in several key ways:

  1. Specialized Industry Focus: KJ ProWeb caters specifically to high-risk industries such as hemp-derived CBD, CBD hemp flower, pre-rolls, CBD vapes, Delta 8 THC, and other challenging sectors like cryptocurrencies and gambling sites. *1.

  2. Competitive Pricing: They offer true Interchange plus pricing, with rates as low as 3.3% plus $0.25 per transaction for high-risk merchants, which is competitive in the industry. *2.

  3. Rapid Approval Process: KJ ProWeb provides same-day or 24-hour approvals, with service activation possible within 24 to 48 hours of submitting a complete application. *3.

  4. Transparent Pricing Structure: The company prides itself on honest and straightforward pricing, discussing all rates and fees upfront before service signup. *4.

  5. Comprehensive Fraud Protection: KJ ProWeb offers advanced fraud and chargeback prevention measures, including EMV and PCI compliance, encryption, and SSL security. *5.

  6. Free Equipment: Merchants receive a free Payanywhere Smart Terminal, allowing them to accept various payment methods anywhere. *6.

  7. Affordable Payment Gateway Fees: Their high-risk friendly payment gateway comes with fraud monitoring for just $25.00 per month, with no sign-up or application fees.

  8. Diverse Payment Solutions: KJ ProWeb offers multiple payment gateway integration options for online sellers and point-of-sale terminals for retail storefronts, catering to various business models.

  9. Extensive Banking Network: The company works with over 30 sponsoring banks, top digital ISOs, and ISVs, which can speed up the application approval process and onboarding.

  10. Regulatory Compliance Assistance: KJ ProWeb helps businesses navigate the complex regulatory landscape associated with high-risk industries.

These features collectively make KJ ProWeb a compelling choice for businesses in high-risk sectors seeking reliable and tailored payment processing solutions.

 
Citations:
  1. https://community.shopify.com/c/payments-shipping-and/need-advice-on-cbd-oil-product-sales-without-paypal-or-stripe/m-p/521768/highlight/true#M22729 
  2. *https://community.shopify.com/c/payments-shipping-and/need-advice-on-cbd-oil-product-sales-without-paypal-or-stripe/m-p/617504/highlight/true#M26530
  3. https://www.linkedin.com/pulse/what-high-risk-payment-processing-why-does-ifqyc
  4. https://www.swipesum.com/insights/high-risk-merchant-account-what-they-are-best-providers-how-they-work
  5. https://kjproweb.com/best-high-risk-payment-processing-solutions/
  6. https://kjproweb.com/payment-cloud-for-high-risk-merchants/
  7. https://www.reddit.com/r/smallbusiness/comments/wfed4s/high_risk_payment_processors/
  8. https://www.chargebackgurus.com/blog/high-risk-merchant-accounts
  9. https://stripe.com/resources/more/high-risk-merchant-accounts-explained

At present, there is not a specific Merchant Category Code (MCC) exclusively for hemp-derived CBD products. However, CBD merchants are typically categorized under the following MCCs:

  1. MCC 5499: This code is used for specialty markets and convenience stores, and is often applied to CBD merchants that exclusively sell products containing less than 0.3% THC.

  2. MCC 5912: This code covers “Drug Stores and Pharmacies” and is often used for businesses selling cannabis and CBD products where legal.

  3. MCC 5999: Mastercard may categorize some CBD merchants under this code for “Miscellaneous Retail”.

It’s important to note that the classification can vary depending on the merchant’s primary business focus and the specific policies of the payment processor or acquiring bank. CBD merchants are generally considered high-risk, which can affect their payment processing options and fees.

Additionally, as of March 2025, the regulatory landscape for CBD products is still evolving, and merchants in this space face challenges in obtaining consistent categorization across different payment networks47.

Citations:
  1. https://paybotic.com/learn/blog/shopping-cart-options-for-cbd-merchants/
  2. https://vendoservices.com/blog/visa-mastercard-high-risk-fees/
  3. https://www.eflow.com/post/high-risk-mcc-codes-visa
  4. https://blog.basistheory.com/cannabis-cbd-payments-best-practices
  5. https://www.web-payment-software.com/online-merchant-accounts/mcc-codes/
  6. https://www.legitscript.com/regulatory-and-card-brand-compliance/merchant-category-codes/
  7. https://thepaymentsassociation.org/article/the-ultimate-guide-to-merchant-category-codes-mccs-and-why-they-matter/
  8. https://usa.visa.com/dam/VCOM/download/merchants/visa-merchant-data-standards-manual.pdf
  9. https://www.paymentcardsettlement.com
  10. https://www.finextra.com/blogposting/28019/the-ultimate-guide-to-merchant-category-codes-mccs-and-why-they-matter
  11. https://www.swipesum.com/insights/mcc-code-lookup-list-tool

 

CBD merchants can employ several strategies to increase their chances of getting approved for credit card processing, particularly given the high-risk nature of the industry:

1. Ensure Full Legal Compliance

  • Verify that all products contain less than 0.3% THC by weight volume and comply with federal and state regulations.

  • Provide certificates of analysis (COAs) from DEA-registered labs for each product batch to demonstrate compliance.

  • Implement strict age-verification procedures and avoid selling in states where CBD is prohibited.

2. Prepare Comprehensive Documentation

  • Submit all required business licenses, tax information, bank statements, and permits.

  • Include detailed product descriptions, COAs, and proof of regulatory adherence.

  • Maintain a clear inventory management system to track product origins and sales.

3. Work with Specialized Payment Processors

  • Partner with processors experienced in high-risk industries, such as Best Rate Merchant Services, Durango Payments, Payment Cloud, Merchant Broker, PayBotic, CBD Pay, CanPay, or PAYCLY Merchant Services. *KJ ProWeb has ISO/agent agreements with each of these companies and over 30 sponsoring banks.

  • Research processors thoroughly to ensure competitive rates, transparent fees, and strong service agreements.

  • Larger processors like Stripe and Square may also accept CBD merchants who meet stringent requirements. However, these two companies are notorious for changing their policies without sufficient advance notice to CBD sellers. An unreliable payment processor can cause significant disruptions to cash flow and business continuity.

4. Build Financial Credibility

  • Maintain a healthy credit score for the business owner or company to improve approval chances.

  • Demonstrate stable sales volumes and consistent operating hours to reassure payment processors.

5. Mitigate Risk Through Technology

  • Use advanced fraud detection systems, secure payment gateways, and real-time monitoring tools to reduce risk.

  • Implement tokenization to safeguard sensitive customer data and lower interchange fees.

6. Diversify Your Payment Acceptance Options

  • Offer alternative payment methods like digital wallets, cryptocurrency, pay-by-bank (e-debit), or e-checks, while awaiting approval for credit card processing. These are excellent options and often less expense compared to traditional credit card processing. 

7. Focus on Low-Risk Products Initially

  • Emphasize non-ingestible products such as topicals or skincare items during the initial application process to reduce perceived risks.

8. Communicate Proactively with Underwriters

  • Request a direct conversation with underwriters to explain compliance measures and address concerns.

  • Seek feedback on past application declines to resolve deficiencies before reapplying1.

9. Purchase Insurance

  • Obtain insurance policies for product liability, inventory loss, and business interruption to transfer risks away from banks.

10. Stay Persistent

  • If declined initially, reapply after addressing feedback or deficiencies.

  • Explore alternative funding options like private capital or merchant financing during startup phases.

By combining rigorous compliance measures, strategic partnerships with specialized processors, and proactive risk mitigation efforts, CBD merchants can significantly improve their chances of securing reliable credit card processing solutions.

 
Citations:
  1. https://www.linkedin.com/pulse/complete-guide-cbd-merchant-account-processing-0m6fc
  2. https://emerchantbroker.com/blog/merchant-processing-cbd/
  3. https://www.linkedin.com/pulse/unlocking-growth-navigating-high-risk-merchant-cbd-eyal-marmareli-g94ke
  4. https://www.bigcommerce.com/articles/selling-cbd-online/cbd-payments/
  5. https://goftx.com/blog/cbd-payment-processing/
  6. https://www.goodwinlaw.com/en/insights/publications/2024/03/insights-finance-ftec-navigating-challenges-solutions-cannabis-payment-processing
  7. https://www.ixopay.com/en/news/how-to-increase-transaction-approval-rates-and-reduce-fees-for-high-risk-merchant-accounts
  8. https://signaturepayments.com/how-can-payment-processing-impact-cbd-merchants/

Answer from Perplexity: pplx.ai/share

MCC codes significantly impact CBD merchants’ ability to get approved for credit card processing in several ways:

  1. Risk Classification: CBD merchants are often categorized under high-risk MCCs, which can make it more challenging to obtain credit card processing services. 

  2. Inconsistent Categorization: There’s no specific MCC for CBD products, leading to inconsistent categorization. CBD merchants may be classified under various codes such as:

    • MCC 5499 (Specialty markets and convenience stores)

    • MCC 5912 (Drug stores and pharmacies)

    • MCC 5999 (Miscellaneous retail)

  3. Stricter Regulations: High-risk MCCs trigger additional scrutiny and regulations from card networks, making the approval process more complex and time-consuming.

  4. Higher Fees: Merchants with high-risk MCCs often face higher processing fees and stricter terms due to the perceived increased risk of chargebacks and fraud. 

  5. Limited Options: Many payment processors and banks are hesitant to work with CBD merchants due to their historical reputation, even if they’re not officially designated as high-risk. 

  6. Additional Requirements: CBD merchants may need to undergo more rigorous underwriting processes and provide additional documentation to secure credit card processing services. 

  7. Potential for Account Closure: Even if approved, CBD merchants with high-risk MCCs face a higher risk of account closure if they don’t adhere to strict compliance standards. 

  8. Impact on Business Operations: The challenges in obtaining reliable credit card processing can affect a CBD merchant’s ability to operate efficiently and grow their business. 

To improve their chances of approval, CBD merchants should ensure they’re accurately categorized, comply with all regulations, and consider working with payment processors specializing in high-risk industries. 

Citations:
  1. https://paybotic.com/learn/blog/shopping-cart-options-for-cbd-merchants/
  2. https://blog.basistheory.com/cannabis-cbd-payments-best-practices
  3. https://vendoservices.com/blog/payment-processing-cbd/
  4. https://www.linkedin.com/pulse/understanding-high-risk-mcc-codes-payment-processing-joe-garner-yh5fe
  5. https://staxpayments.com/blog/merchant-category-codes/
  6. https://paymentcloudinc.com/blog/high-risk-mcc-codes/
  7. https://corepay.net/articles/merchant-category-codes/
  8. https://www.joinstored.com/blogs/mcc-codes-understanding-their-importance-in-payment-processing

Food and Drug Administration (FDA)

The FDA plays a central role in regulating CBD products:

  • It has concluded that existing regulatory frameworks for foods and supplements are not appropriate for CBD. *1.

  • The agency can take action against companies making unsubstantiated health claims about CBD products. 2.

  • FDA prohibits adding CBD to food products or marketing it as a dietary supplement. *3.

  • A new regulatory pathway for CBD is being explored to balance consumer access with necessary oversight. *4.

 

United States Department of Agriculture (USDA)

The USDA has established guidelines for hemp production and interstate commerce:

  • It issued regulations implementing the 2018 Farm Bill, which legalized hemp at the federal level. *1.

  • USDA rules state that states cannot prevent the interstate transportation of hemp produced in compliance with the Farm Bill. *2.

 

Drug Enforcement Administration (DEA)

The DEA’s role has changed since the 2018 Farm Bill:

  • It no longer has jurisdiction over hemp-derived products containing less than 0.3% THC. *1.

  • The agency focuses on larger-scale operations and drug trafficking rather than individual users. *2.

 

 

Federal Trade Commission (FTC)

The FTC is involved in regulating CBD marketing practices:

  • It targets deceptive advertising and unfair business practices in the CBD market3.

  • Companies making false health claims or engaging in deceptive trade practices may face warning letters, cease and desist orders, or legal action. *3.

These agencies work together to create a regulatory framework for hemp-derived CBD products, addressing issues of production, interstate commerce, marketing, and consumer safety. However, the landscape remains complex, with ongoing discussions about creating more comprehensive and tailored regulations for CBD products.

Several federal agencies are primarily responsible for enforcing CBD regulations:

  1. Food and Drug Administration (FDA): The FDA plays a central role in regulating CBD products. *1. It enforces laws related to:

    • Marketing claims of therapeutic benefits or disease treatment

    • Addition of CBD to food products

    • Interstate commerce of CBD products

    • Approval of CBD-based drugs

  2. Federal Trade Commission (FTC): The FTC works independently but often coordinates with the FDA. *2. It focuses on:

    • Deceptive advertising practices

    • Unsubstantiated health claims

    • Enforcement actions, including monetary fines for false claims

  3. United States Department of Agriculture (USDA): The USDA is responsible for. *1:

    • Setting baseline rules for federal regulation of hemp and its derivatives

    • Reviewing and approving state-level hemp regulations

  4. Drug Enforcement Administration (DEA): While the DEA’s role has diminished since the 2018 Farm Bill, it still. *3:

    • Enforces controlled substance laws and regulations

    • Focuses on larger-scale operations and drug trafficking

  5. U.S. Customs and Border Protection (CBP): While not primarily responsible for CBD regulation, CBP plays a role in:

    • Enforcing regulations at borders and ports of entry

    • Monitoring the import and export of CBD products

These agencies work together to create and enforce a regulatory framework for CBD products, addressing issues of production, interstate commerce, marketing, and consumer safety.

The FDA regulates the interstate sale of CBD products through several key measures:

  1. Therapeutic Claims: The FDA prohibits the marketing of CBD products with therapeutic claims unless they have been approved by the agency. Any CBD product marketed as having health benefits or treating diseases must receive FDA approval before it can be sold across state lines. *1, 2.

  2. Food and Dietary Supplements: The FDA has determined that it is unlawful to introduce food containing added CBD into interstate commerce or to market CBD products as dietary supplements. *2. This is because CBD is an active ingredient in FDA-approved drugs and was the subject of substantial clinical investigations before being marketed as food or supplements. *3.

  3. Enforcement Actions: The FDA takes enforcement action against companies illegally selling CBD products that make unsubstantiated health claims or violate other regulations. This includes issuing warning letters to companies marketing unapproved CBD products. *4.

  4. Pathways for Legal Marketing: While the FDA restricts many forms of CBD product sales, it recognizes pathways for the lawful introduction of cannabis and cannabis-derived products into interstate commerce. This includes FDA approval of drugs containing CBD, such as Epidiolex. *5.

  5. Ongoing Regulatory Development: As of 2023, the FDA has announced that existing food and dietary supplement regulatory pathways are not appropriate for CBD products. The agency is exploring new regulatory approaches to address the growing CBD market. *6.

  6. Collaboration with Other Agencies: The FDA works in conjunction with other federal agencies, such as the FTC, to regulate CBD product marketing and interstate commerce. *7.

It’s important to note that while hemp was legalized under the 2018 Farm Bill, the Food and Drug Administration retains its authority to regulate CBD products under the Food, Drug, and Cosmetic Act, regardless of whether they are derived from hemp.

Citations:
  1. https://hallrender.com/2019/01/18/fda-clarifies-position-on-cbd-after-passage-of-2018-farm-bill/
  2. https://www.wardandsmith.com/articles/The-FDA-moves-to-regulate-CBD
  3. https://www.fda.gov/news-events/press-announcements/statement-fda-commissioner-scott-gottlieb-md-signing-agriculture-improvement-act-and-agencys
  4. https://sgp.fas.org/crs/misc/IF11250.pdf
  5. https://www.fda.gov/news-events/press-announcements/fda-warns-15-companies-illegally-selling-various-products-containing-cannabidiol-agency-details
  6. https://www.congress.gov/crs-products/product/pdf/R/R46189
  7. https://www.cnbc.com/2018/12/20/fda-considers-legalize-interstate-sales-of–cannabis-based-cbd-in-food-and-drinks.html
  8. https://www.arnoldporter.com/en/perspectives/advisories/2023/02/fda-announces-a-path-forward-for-cbd-consumer

 

The FDA enforces its regulations on CBD products sold online through several key methods:

  1. Warning Letters: The FDA issues warning letters to companies selling CBD products online that violate regulations, particularly those making unsubstantiated health claims or marketing CBD as dietary supplements. *1 , *2.

  2. Risk-Based Enforcement: The agency employs a risk-based approach, prioritizing enforcement against products making misleading claims that could lead consumers to forgo effective treatments or products posing significant safety concerns. *3.

  3. Monitoring Online Sales: The FDA actively monitors the online marketplace for CBD products that violate regulations, especially those sold across state lines. *4.

  4. Collaboration with FTC: The FDA works in conjunction with the Federal Trade Commission to target deceptive advertising practices and unsubstantiated health claims for CBD products. *5.

  5. Public Statements and Guidance: The FDA issues public statements and guidance to inform consumers and businesses about the legal status of CBD products and potential risks. *6.

  6. Enforcement Actions: In cases of significant violations, the FDA may take more severe enforcement actions, including product seizures or injunctions against companies. *7.

  7. Operation CBDeceit: In collaboration with the FTC, the FDA has participated in enforcement sweeps targeting companies making unsubstantiated drug claims about CBD products. *8.

  8. Consumer Warnings: The FDA issues consumer updates warning about the risks of mislabeled or contaminated CBD products sold online. *9.

As of March 2025, the FDA continues to refine its approach to CBD regulation, with ongoing evaluations of potential regulatory pathways for CBD products. However, the agency maintains its stance that adding CBD to food products or marketing it as a dietary supplement without approval remains illegal under federal law.

Citations:
  1. https://www.mintz.com/insights-center/viewpoints/2791/2021-03-24-cbd-regulatory-enforcement-continues-over-counter-cbd
  2. https://www.ftc.gov/business-guidance/blog/2019/09/making-cbd-health-claims-careful-disseminating
  3. https://www.fda.gov/news-events/public-health-focus/fda-regulation-cannabis-and-cannabis-derived-products-including-cannabidiol-cbd
  4. https://www.bigcommerce.com/articles/selling-cbd-online/cbd-legal-trends/
  5. https://www.linkedin.com/pulse/fdas-legal-stance-enforcement-cbd-eric-alspaugh-g3f9c
  6. https://www.fda.gov/news-events/public-health-focus/warning-letters-cannabis-derived-products
  7. https://www.congress.gov/crs-product/R46189
  8. https://www.fda.gov/news-events/press-announcements/fda-issues-warning-letters-companies-illegally-selling-cbd-and-delta-8-thc-products

 

Companies making unsubstantiated health claims about CBD products face several significant consequences:

  1. Warning Letters: The FDA and FTC issue warning letters to companies making unsubstantiated health claims, requiring them to address the agencies’ concerns within 15 days. *1.

  2. Civil Penalties: Companies can face civil penalties of up to $50,120 per violation. In some cases, each day of continuing activity could be considered a separate violation. *2.

  3. Enforcement Actions: The FTC can take legal action against companies, as demonstrated by the case against Kushly Industries LLC, which resulted in a $30,583.14 payment to the FTC. *3.

  4. Product Seizures: In cases of significant violations, the FDA may take more severe enforcement actions, including seizing products. *4.

  5. Injunctions: The FDA can seek injunctions against companies to halt the sale of products with unsubstantiated claims. *5.

  6. Reputational Damage: Public warnings and enforcement actions can harm a company’s reputation and consumer trust. *6.

  7. Market Restrictions: Companies may be prohibited from making certain claims about their products in the future, limiting their marketing capabilities. *7.

  8. Consumer Redress: In some cases, companies may be required to provide refunds or other forms of compensation to consumers who purchased products based on false claims. *8.

  9. Increased Scrutiny: Companies that receive warnings may face heightened scrutiny from regulatory agencies in the future. *9.

These consequences underscore the importance of ensuring that all health claims for CBD products are backed by competent and reliable scientific evidence before being marketed to consumers.

Citations:
  1. https://www.ftc.gov/news-events/news/press-releases/2021/05/ftc-announces-latest-enforcement-action-halting-deceptive-cbd-product-marketing
  2. https://www.ftc.gov/business-guidance/blog/2019/09/making-cbd-health-claims-careful-disseminating
  3. https://harris-sliwoski.com/cannalawblog/cbd-companies-beware-ftc-threatens-civil-penalties-for-unsubstantiated-claims/
  4. https://pmc.ncbi.nlm.nih.gov/articles/PMC8713259/
  5. https://www.dglaw.com/ftc-and-fda-target-advertising-of-cbd-health-claims/
  6. https://www.fda.gov/news-events/press-announcements/fda-warns-company-marketing-unapproved-cannabidiol-products-unsubstantiated-claims-treat-cancer
  7. https://pmc.ncbi.nlm.nih.gov/articles/PMC7759277/
  8. https://uk.practicallaw.thomsonreuters.com/w-019-8745?transitionType=Default&contextData=%28sc.Default%29

As highlighted in the FIS Global Payment Methods Report 2023, digital wallets have taken the lead as the preferred payment method globally, utilized in both e-commerce and point-of-sale (POS) systems.

They comprised 49% of the total transaction value for e-commerce payments in 2022 and 32% of the total transaction volume for POS transactions. Credit cards ranked second in popularity across both segments, while debit cards were the third most favored payment method among customers around the world.

According to a Forbes Advisor article published in August of 2023, *53% of Americans prefer to use a digital wallet rather than a traditional payment  method.  The article discusses the rise of digital wallets and their increasing role in transforming the payments landscape.

 

Which digital wallets are most popular for CBD transactions?

The most popular digital wallets for CBD transactions in March 2025 include:

  1. Apple Pay: Widely supported by CBD-friendly payment processors like MONEI, Apple Pay is a secure and convenient option for online and in-store CBD transactions.

  2. Google Pay: Frequently integrated by CBD payment processors, Google Pay offers seamless mobile payments and is compatible with platforms like MONEI and Clearent.

  3. PayPal: Some CBD-friendly processors, such as MONEI, support PayPal for CBD transactions, making it a popular choice for online purchases. Do not make the mistake of using PayPal as your eCommerce payment processor if you sell CBD or other federally regulated products. Your account will most likely get shutdown, funds will be seized, and many CBD sellers have ended up on the dreaded “black list”, meaning they become ineligible for a merchant account with a different payment processor.

  4. Click to Pay: This digital wallet is increasingly used for CBD eCommerce transactions due to its ease of use and compatibility with multiple processors.

These wallets are supported by specialized payment processors that cater to high-risk industries like CBD, ensuring compliance with regulations and secure payment processing.

Citations:
  1. https://saucal.com/blog/cbd-payment-processor/
  2. https://www.bigcommerce.com/articles/selling-cbd-online/cbd-payments/
  3. https://koronapos.com/blog/cbd-payment-processing/
  4. https://www.aeropay.com/guides/cannabis-payments
  5. https://www.wearedivisa.com/e-commerce/cbd-ecommerce-platforms/
  6. https://alpharoot.com/insights/cannabis-payment-processing/
  7. https://c-trax.com/BLOG/dispensary-payments-solutions/
  8. https://monei.com/sectors/payment-gateway-for-cbd-products/

 

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