Last updated on April 27th, 2022 at 03:47 pm
Despite Kratom’s medical and recreational benefits, it has gained quite a reputation as an addictive narcotic. This means no traditional bank offers merchant services for kratom-based businesses. If you sell or supply kratom, you’ll need a high-risk merchant account for kratom credit card processing services.
Why are Kratom Suppliers Having Credit Card Processing Problems?
Tagged under the high-risk classification, kratom suppliers generally get turned down by domestic banks. High-risk merchants include those that belong in industries with high occurrence of fraud and chargebacks, as well as industries with products or services that are controlled or regulated.
Kratom has long been used as a traditional medicine in Southeast Asia. It’s the growing medical, legal, and regulatory concerns on kratom that make it difficult for suppliers to do business with traditional financial establishments worldwide. This creates a problem for merchants who need a kratom credit card processor to send and collect payments.
To better understand why kratom merchant account services are considered high-risk, you need to know the medical and legal issues that surround the kratom industry.
Medical Concerns on Kratom
Scientific research on kratom shows mixed results when it comes to its effects. For instance, studies published from 2017-2018 revealed that kratom only has a few negative effects, such as nausea and constipation. Furthermore, the studies found out that these symptoms only appear at high doses, or when kratom is taken frequently.
Meanwhile, other findings are not as positive. One of the first studies in 2014, titled Kratom (Mitragyna speciosa) dependence, withdrawal symptoms and craving in regular users, showed that regular kratom use is associated with drug dependency, craving, and development of withdrawal symptoms. These symptoms become more severe with extended use. Among the 293 regular kratom users surveyed in Malaysia, 45% showed moderate kratom dependence, while more than half developed severe dependence. Recent studies also suggest that as kratom use increases all over the world, reports of kratom dependence, tolerance, and withdrawal also increase.
NIDA, CDC, DEA, and FDA on Kratom
Since kratom can be used as a stimulant or a sedative depending on the dose, the National Institute on Drug Abuse (NIDA) echoes what other studies are saying – that kratom can lead to symptoms of drug dependence and psychosis.
If abused, kratom can lead to seizures, hallucinations, and death, according to the Drug Enforcement Administration (DEA). Currently, there have been 44 kratom-related deaths. However, it’s worth noting that these deaths are linked to kratom being used along with contraindicated prescription medications and illegal drugs, as per NIDA. This is consistent with the findings of a study conducted in 2019 by the University of Colorado, wherein they found out that in 14 of 15 kratom-associated deaths in Colorado from 1997-2017, other drugs were also present.
Poison control centers in the US have also reported that in 2015, they received 263 kratom-related calls. According to the Centers of Disease and Control (CDC), 42% of kratom use between 2010 and 2015 involved non-life-threatening symptoms that required treatment, while 7% of the cases were classified as major and life-threatening.
These emerging medical concerns, in turn, affect the legality of kratom. Regulations are not the same around the world, which is why kratom remains a highly controversial industry that traditional banks would not want to touch. Although kratom users touted its medicinal efficacy as a natural opioid, the fact that it is an opioid makes it a tricky product.
Legal Concerns of Kratom
Finding safe, secure, and reliable kratom payment processing and alternative payment solutions as a high-risk kratom-based merchant requires a thorough understanding of the legal climate of kratom sales worldwide. You need to be aware of the countries where you can legally market and sell kratom, and of places that are totally off-limits.
It’s worth noting that as of January 2018, kratom and its alkaloids were not listed in the Schedules of the United Nations Drug Conventions. However, kratom is prohibited or controlled in various countries around the world.
Countries where Kratom is prohibited or restricted:
- New Zealand
Currently kratom is legal in the United States on the Federal level.
Locations in the USA where Kratom is Banned:
- Rhode Island
- City of Franklin, New Hampshire
- City of Edwardsville, Illinois
- City of Alton, Illinois
- City of Jerseyville, Illinois
- Sarasota County, Florida
States with Pending Kratom Legislation
- New York
- New Jersey
- New Hampshire
In most cases, users must be 18 years old to be able to buy kratom in kratom-friendly states.
DEA Scheduling on Kratom
In 2016, the DEA declared its intention to list the active materials in kratom under Schedule I of the Controlled Substances Act. This, however, was met with a huge backlash from the kratom community. The DEA had to cancel their planned emergency scheduling on kratom.
The FDA, meanwhile, continues to warn the public that kratom was not approved for any medicinal use, citing testimonies from users as anecdotal evidence. The FDA has also issued warning letters to some kratom-based businesses in 2018, stating that these companies would have to pay steep fines in violation of the Federal Food, Drug, and Cosmetic Act (FDCA) that prohibits the sale of unapproved new drugs.
At present, advocacy and education efforts are being made to overturn the ban. As for states with pending legislation on kratom, it’s necessary for kratom supporters to act to prevent any scheduling or a ban in the future. Until that battle is won, kratom remains a high-risk product.
E-Check Processing for Kratom-Based Businesses
Allied Payments can help you process your kratom-based business. Check processing is one of the most reliable and low cost ways to accept online payments for Kratom. As credit card processing solutions have backed away from Kratom, e Check has remained as one of the best alternative payment methods.
Kratom wholesalers and retails looking for reliable, efficient, and affordable payment solutions can contact Allied Payments. Our e-Check processing for high-risk industries is one of the most reliable alternative payment solutions available to merchants today.
How to Get Kratom Credit Card Processing
First, you need to get a high-risk merchant account for your kratom-based business to send or receive payments. Obtaining a high-risk merchant account lets you use related services, including payment processing and payment gateway.
Today, finding a kratom friendly credit card processing can be difficult. There are payment processing service providers available if you search the internet, but some can be very expensive and sketchy. It’s vital to do your research and shop around for multiple candidates who can offer secure kratom payment processing online before you sign the deal.
Start Accepting Kratom Payments Today!
To get started on our high-risk merchant account, payment processing, and payment gateway services, contact the kratom payment processing team at Allied Payments. Our team of kratom merchant account specialists will be happy to help find your business the proper payment processing services.