• EconMan
    3.1k
    CBD is Getting Weird folks. Over a dozen banks dropped out in less than a month, including the three largest players.

    Here is the new requirements from the last "great bank" left playing. Brutal. :death:

    Required Documentation

    Merchant Application
    250k/month in documented volume
    Pricing of at least IC+ 200bp or tiered/flat equivalent
    Campaign Overview
    W-9
    SS-4 (EIN Paperwork)
    Articles of Incorporation/Organization
    Photo I.D. (for principals with 25% or greater ownership)
    Most recent Business/Personal Tax Return
    12 Months Most Recent Business/Personal Bank Statements
    3 Months Most Recent Processing Statements
    Voided Business Check and or Bank Letter for deposits (cannot be starter check needs to have legal name)
    Fully documented ownership - Operating Agreement (or any document showing ownership % such as K1 of Tax Return, Share Certificate, etc).
    Fulfillment Agreement
    THC Lab results (COA for each product sold)
    No products with a THC concentration greater than 0.3% by weight.
    No products with a CBD concentration greater than 70% by weight.
    Elevated Risk Addendum (attached)
    CBD Addendum (attached)
    List all products with CBD and THC concentrations for each product.
    5% ongoing reserve (attached)
    Merchants that sell Vape products will be subject to Mastercard Registration Fee ($1,000.00).


    Website Requirements
    THC Lab results to be displayed on each unique product page
    No disease claims on any marketing material
    We are screening websites and publicly available marketing material for any mention of diseases or disease conditions (for example, cancer, diabetes, Alzheimer’s, Crohn, Parkinson, Epilepsy, Fibromyalgia, Depression, Arthritis, inflammation, anxiety, etc.).
    No mention of prescription drugs on any marketing material
    We are screening websites and publicly available marketing material for any mention of prescription drugs (for example, Epidiolex, Prozac, Xanax, etc.)


    Prohibited
    Startup CBD Merchants
    Retail CBD Merchants
    Negative Option Billing (trial)
    Network Marketing CBD Merchants
    Merchants that are on MATCH
    Dry Herb and Wax Vaporizers
  • Mangu
    231
    Jeez....what’s the deal with these serious crackdowns? Do you think they’re just thinning out the herd? Or looking more like full outlaw?
  • EconMan
    3.1k


    My best suspicion is just good old fashion fear. Fear of what "might" happen. From over zealous government to idiot proprietors, Merchant Banks live in fear.

    Credit Card Processing is indistinguishable from "Money Laundering" and differences are only in perception.
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