Some of the most commonly restricted or prohibited herbal products by payment processors in the USA include:

  • Cannabis
  • CBD
  • Kava
  • Kratom

Though many of these herbal substances might not be prohibited from a legal standpoint, many financial institutions have restricted their association with these products. At Allied Payments, we are able to process transactions for most legal herbal products. Contact our payment processing team for more information.herbal merchant account services

What are Herbal Products?

There are a number of herbal products available today for a variety of different purposes. Some of the most common that are facing scrutiny from governments include:


Primarily referred to by its slang name Marijuana, cannabis is a drug with psychoactive properties used for both recreational and medical purposes. While the source plant, cannabis, is Federally illegal in the USA, its legal status varies state by state. Payment processors have all but outright banned the sale of cannabis through their payment networks because of legal concerns.


Cannabidiol, commonly referred to as CBD, is a chemical found within cannabis. Commonly used for chronic pain and anxiety disorders, it can be introduced into the body through a number of different means including inhalation as smoke or vapor or orally through food or spray. CBD does not contain THC, the chemical responsible for the psychoactive properties, allowing for a majority of states in USA to legalize it for medicinal purposes.


The kava (Piper Methysticum) is a plant native to the Pacific Islands. The root of the kava plant is used to create a healing drink used by local populations. This plant has euphoriant characteristics, resulting in its use as a medicinal anesthetic and sedative. While acceptable by many health organizations in small doses, larger consumption has been tied to several health problems. Kava drinks and kava bars have become increasingly popular in the USA, making the kava root a more mainstream herb.


Kratom (Mitragyna Speciosa) is a type of tropical tree that belongs to the coffee family and native to south-east Asia. Commonly used in Thailand, the Kratom plant has many purposes and has been part of traditional Asian medicine for countless centuries. Viewed as a controlled substance in a number of countries, there have been increasing restrictions placed on its use in the USA as concerns to its toxicity grow.

Kratom Merchant Account Services

In most cases, startups or companies that have low monthly processing volume will not be approved by high risk credit card processing company. Any startup that sells kratom or kava is regarded as a higher risk business.  Only the largest of merchants might be considered for a sponsored kratom credit card processing account.

Kratom merchants being approved and set up to accept card payments need to exercise caution because their account could be closed at any time. One of the most common ways card processors are able to set up accounts is by miscoding the merchants. This practice carries considerable risk for the kratom merchants and processors alike if discovered by the payment card networks.kratom merchant account services

While merchants selling kava have not been legally informed about changes to the status of their products, the payment card networks have already made their decision. Kava has been placed on most restricted lists, preventing merchants from securing credit card processing services. This has left kava merchants in the same predicament as the kratom merchants, how to accept payments for online transactions.

Many of these merchants have turned to the solutions used for CBD merchant account services, electronic checks. Like CBD, kratom and kava are regulated on the state level, allowing checks to be accepted at local banks. Here merchants are not tied to the regulations set forth by the payment card companies, rather they can operate within the limits set by local governments.

Benefits of a Kava Merchant Account Services

Many herbal payment processors might offer kratom credit card processing services however, kratom is a prohibited product by the card networks. This happened because the DEA in 2017 listed kratom as a “Drug of Concern” and most financial services companies cut ties with these businesses. In response, eCheck processing has emerged as a practical solution to accept payments for restricted herbal products.

kava payment processingOperating without the regulation imposed by payment networks such as Visa and MasterCard, the likelihood of account longevity increases significantly.  Customers have overwhelmingly adjusted to the use of echecks for their online ordering. With easy integration into WooCommerce, Shopify and OpenCart; adding e check is a snap.

Herbal check processing services can be opened the same day the application is completed.  Allied Payments can help businesses looking to start accepting payments immediately to be approved and integrated into our check processing network.   Contact our team for more information.

Herbal Payment Processing Requirements

Underwriters for both merchant account and check processing companies are required to do their due diligence on applicants. While the complete documents list required by each underwriter may vary, below are the most commonly requested items. Having these items ready at the time of application will help expedite your approval time.

  • Completed Application
  • Copy of Government ID
  • Copy of Voided Check
  • Copy of recent Bank Statements
  • Copy of recent Payment Processing History

Submitting a complete package is the only way to have an account approved in a fast timeframe. Most importantly, merchants need to prepare a completed application prior to submission. Many times when applications are sent in they are incomplete and missing pertinent information, delaying the underwriting process. A quick review of the application can prevent these issues and help have accounts approved much more rapidly.

Two of the most important attachments for merchants to return with their application is a copy of their ID and a copy of a voided check. Verification of the applicant is essential for any underwriters KYC (know-your-customer) guidelines, preventing fraud or other legal issues. A copy of the business’ voided check is a way for underwriters to confirm the bank account is active and the settlement information is correct.

A requirement of most underwriters is that recent financial and processing statements are provided. Verification that the business operates with surplus funds is part of the underwriter’s due diligence. Most underwriters will also want to see the history of payments, to make sure the chargebacks are refunds are held to a minimum. Most check processors will not require these documents but including them with an application can not hurt and might actually expedite the underwriting process.

Open your Kava Bar Merchant Account Today!

If you run a business that sells kratom and you are fed up with completing applications to open a merchant account, you can turn to Allied Payments. Our team can offer you many excellent solutions to your kratom payment processing needs. Our services are both affordable and easy to use, with quick integrations with several popular shopping carts and top-notch customer service to help with any questions or concerns. Partnering with the team at Allied Payments will help businesses in need of kava merchant account services to be set up quickly and effectively.