Kratom Credit Card Processing | WizoPay

Accounts Wizard
October 26, 2021

Kratom Credit Card Processing | Credit Card Payment Issues, the Reasons, and the Solution

The Kratom industry is skyrocketing due to the increased interest in this natural medicine. However, the companies selling this product face a great issue. They can’t accept credit or debit cards as a payment method. This is a big problem both for sellers and buyers as it complicates the selling-buying process.

As a Kratom merchant, it’s essential to understand the problems you’re facing with. Also, you need to learn about the Kratom industry, the risk, and credit card processing. And, we are going to explain everything you need to know about it.

What Is Kratom?

Kratom is a tropical tree growing in Southeast Asia. The leaves of the tree contain a chemical called mitragynine which works like an opioid drug similar to morphine and codeine. It’s mainly used as a medicine to relieve pain, for drug withdrawal, and as a recreational drug. However, due to its psychotropic effect and safety concerns, it’s illegal and banned by several states in the US. Learn more about medical marijuana payment processing. 

Types of Kratom Strains

In order to understand what you’re selling, you need to know the types of kratom strains. Each one differs from the others in its effect and potential.

The basic kratom strains are:

  • White vein kratom – the most powerful and most versatile type.
  • Red vein kratom – the sweetest and most popular type on the market.
  • Yellow vein kratom – the one with the strongest flavor and scent and powerful effect.
  • Green vein kratom – not too strong nor too weak, just perfect for beginners and long-term users.

Types of Kratom Products

With the increased interest and use of kratom for medical purposes or achieving wellness, several types of kratom products have been created. Therefore, kratom merchants can sell:

  • Kratom capsules
  • Kratom tea
  • Kratom powder
  • Kratom extract
  • Kratom drinks
  • Kratom gums
  • Kratom veins and stems
  • Wholesale kratom

Why Don’t Kratom Merchants Accept Credit Card Payments?

The kratom industry is undoubtedly blooming and booming across the globe. More and more people understand the power of herbs and turn to herbal remedies to achieve wellness. With that, more and more businesses get into this industry. The bad news is that kratom merchants have a lot of issues when it comes to payment processing. This is because they can’t accept credit cards or debit cards for payments. The kratom industry is seen as a high-risk industry. As such, it requires a special “high-risk credit card processing”.

What Is High-Risk Credit Card Processing?

High-risk credit card processing refers to accepting credit card payments by merchants of high-risk industries. Namely, high-risk industries are those that deal with sensitive content and data, such as gambling, jewelry, dating sites, and stores selling non-pharmaceutical drugs (such as kratom!). Due to offering such products/services and the great chance of fraud, most credit card companies don’t want to work with them.

Why Is the Kratom Industry a High-Risk Industry?

One of the reasons is that kratom is considered an opioid drug, not a medicine, and is banned by some US states. Since selling this product is seen as very risky and the chance of fraud is great, banks and credit card associations don’t want to take stakes by allowing credit card payments. As a result, kratom merchants can’t accept credit and debit cards for payment which is very damaging for those businesses, especially the ones operating online. And, even if a bank allows you to use kratom credit card processing, they may ask for a large upfront deposit and charge very high discount rates.

The Roots of Kratom Credit Card Processing Problems

The Law Against Kratom

As a kratom merchant, you need to know the legal climate of selling kratom. You need to know if selling it is legal and in which states you can sell it. This raises the question of whether there are federal laws against selling kratom and if selling it is legal.

Contrary to what many people think, NO, there are no federal laws against selling kratom, buying kratom, and using it. However, some states have prohibited kratom products including Alabama, Arkansas, Rhode Island, Wisconsin, Indiana, and Vermont. The good news is that most states allow them.

Besides the fact that selling and buying kratom is legal in most states, credit card companies still see having their product (credit card) involved in payment processing by kratom merchants as a great risk. They fear that the federal government may ban the selling of kratom products, which would bring them financial loss.

The Institutions Against Kratom

Whenever there is a non-pharmaceutical drug on the market, institutions like the NIDA, DEA, FDA, and CDC inspect their effect on humans and safety of use. They keep a close eye on such substances and limit or allow their selling and using.

NIDA on Kratom

The National Institute of Drug Abuse (NIDA) follows the findings of medical research of kratom. As they report, this substance has side effects and can cause dependence and psychosis. Thus, it doesn’t allow its use.

DEA on Kratom

The Drug Enforcement Administration (DEA) says that kratom has a similar effect on people as other drugs, causing hallucinations and seizures. Moreover, several deaths have been associated with its use. It’s noteworthy to mention that the deaths associated with kratom aren’t caused by the use of kratom solely. As a 2019 study by the University of Colorado shows, 14 of 15 kratom-associated deaths were caused by the use of multiple drugs.

FDA on Kratom

The Food and Drugs Association (FDA) doesn’t approve the use of kratom in any form nor regulates its production. They warn the public that kratom wasn’t approved as medicine and shouldn’t be used in any way until claimed so. Moreover, they have sent warning letters to several kratom companies in 2018 claiming that they have violated the Federal Food, Drug, and Cosmetic Act which prohibits the sale of unapproved drugs. As a result, they’d have to pay high fines.

CDC on Kratom

The Center for Disease Control and Prevention (CDC) has reported that 65% of kratom-related cases between 2010 and 2015 had non-life-threatening symptoms that had to be treated, whereas 7% of them were life-threatening.

The Result

While kratom has been used in Asian traditional medicine as a remedy, it’s not seen as one in western medicine. All major health institutions claim that kratom has side effects and acts like an opioid drug that may even lead to death when combined with other prescriptions medicines and drugs.

Due to the lack of studies of this plant and the claims from the federal bodies, banks and credit card companies don’t trust the kratom industry and see it as a high-risk one. Moreover, they don’t want to be involved in an industry that sells a substance with unclear federal status.

The Story of Kratom Credit Card Processing

The Merchants’ Perspective

Kratom merchants have drawn the short straw in this story. Although they sell a legal substance and operate following federal laws, they can’t accept credit card payments in their stores and online shops. And, not accepting credit card payments means losing customers who either don’t want to pay in cash in-store or order online.

Furthermore, kratom credit card purchases have a low chargeback rate due to customer satisfaction. Also, some credit card processors that allow kratom transactions charge merchants high fees. Others hold funds from purchases longer which negatively impacts the merchants as their money is frozen.

There is also the problem of finding a reliable high-risk credit card processor. There are many credit card processing companies that work with high-risk industries. However, not all of them are reliable and merchants may choose a scam or an unstable processor. After all, no one wants to get played and suffer financial loss.

The Credit Card Companies’ Perspective

So far, we’ve looked at credit card companies as if they don’t want to work with kratom businesses on purpose. Well, it’s not quite like that. The thing is that their entire business is at stake. Getting involved in an industry the future of which is still unknown is high risk and may cause a great financial loss to the company. So, instead of trying out their luck in a skyrocketing industry, they prefer to stay away.

Another reason why they don’t offer their product (credit card) is that banks don’t allow merchant services to kratom sellers and buyers. This is because kratom isn’t approved as pharmaceutical medicine and is seen as a controversial substance. In short, it’s all about the company’s safety and financial loss prevention.

The Buyers’ Perspective

While kratom merchants practically beg to be allowed to accept credit card payments, buyers aren’t that much disappointed with the current options of paying in cash. This is because many of them prefer to stay anonymous. They don’t want banks and the state to know that they’ve bought kratom and certainly don’t want a kratom purchase in their transaction history.

Another reason why some buyers prefer paying in cash is the discount. Many kratom shops, both physical and online, offer discounts to people who pay immediately with cash or cryptocurrencies. This is because banks and credit card processors hold the money from a kratom purchase with a credit card and the merchants have to wait longer to get their money. Plus, paying with cash of cryptocurrencies doesn’t include taxes or interest, unlike credit or debit card payments.

Kratom Credit Card Processing: The Solution

Feeling stuck in your business witnessing customer loss and money loss because you can’t accept credit card payments in your kratom shop? Don’t despair! There is a solution to this grand problem. You have to find a reliable kratom credit card processor. These processors allow opening a kratom merchant account and offer fast payment and low service fees. However, since not all kratom credit card processors are the same, look for those that have been on the market for some time and have good reviews. Once you find a trustworthy credit card processor like this, you’ll boost your sales and enjoy all benefits of accepting credit card payments. Consequently, you’ll be able to grow your business.

How to Choose the Best Kratom Credit Card Processor for Your Business?

Not all kratom credit card processors are created equal! Some practice what they preach, while others are scammers. So, make sure you do good research before handling your business finances and success in others’ arms. To choose the right credit card processor, look for their legal business information and credentials. Are they a registered company or a scam?

Next, take a good look at all their charges. Some companies have hidden fees, which aren’t displayed in the Fees section but the Terms and Conditions section. So, make sure you read all there is before being trapped into a long and financially devastating contract.

Top-rated companies offer:

  •  Easy to set up a merchant account that gets approved within a few days
  • Same-day funding guarantee
  • Immediate payments
  • Internal underwriting for a faster approval process
  • POS companion services
  • FDIC Insurance for all payments within the US
  • Work with eCommerce and retail

How to Start Accepting Credit Card Payments? It’s simple… you need to open a high-risk merchant account in a credit card payment processing service provider of your choice. Having a high-risk merchant account gives you access to credit card processing and payment gateways.

The exact process of opening a high-risk merchant account depends on the provider itself. However, as mentioned above, the best kratom credit card processors allow for an easy and fast kratom merchant account setup. These processors usually allow you to open a high-risk merchant account from their homepage by filling out basic information such as name and surname, email, phone, and company name.

How Does Kratom Credit Card Processing Work?

Once you’ve opened a high-risk merchant account, you are ready to start accepting credit card payments in-store or in your online shop. With kratom credit card processing, when someone buys a kratom product with a credit card, the data is transferred from their card to your POS device and then to the cardholder’s bank. All this happens in a few seconds! Having a high-risk merchant account allows for more payment options, boosts your sales, and helps you grow your business.


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