Last updated on March 11th, 2025 at 08:58 am
Kratom Credit Card Processing: Industry Guide
A Kratom Merchant Account is a specialized high-risk credit card processing account designed for businesses that sell Kratom and related products. Kratom is classified as a high-risk industry; many sponsor banks and traditional payment processors often decline applications from Kratom merchants. A specialized Kratom merchant account allows businesses to accept various payment methods, such as credit card, debit card, ACH, and e-check.
Yes, that is true. Traditional payment processors are not the perfect fit for kratom merchants. When these regular processors experience a chargeback spike on their shared account, the first thing they do is shut down merchants from high-risk industries.
Many don’t stop there; instead, they start initiating refunds for all orders, even if merchants have already initiated the shipment. Some companies even go as far as freezing the funds for a period of 180 days or more, potentially even indefinitely. This insensitive behavior can be depressing for kratom entrepreneurs. Fortunately, there are some solid options that still exist. Once approved for these solutions, merchants can establish a stable online Kratom e-commerce business. We are referring to high-risk merchant accounts for Kratom websites.
At QuadraPay, we understand the challenges faced by kratom merchants. We know their pain points, and that is why we have written this guide that delivers in-depth information related to kratom payment processing. Let’s begin.
Key Reasons That Make Getting a Kratom Merchant Account Hard
Most low-risk processors don’t support kratom merchants. This is mostly because of regulatory and legal complexities. Another reason is the health concerns associated with kratom. These are the most important reasons that demotivate credit card processors to support merchants in this industry.
The other industries that face similar challenges because of the nature of the product include CBD, Vape, Kava, Nutraceuticals, and Herbal products. Merchants from all these industries struggle just like the kratom merchant does. The only solutions. Merchants from the struggling industries can find it from a high-risk credit card processor. It is important to know that while using the merchant account provider by kratom-friendly credit card processors, merchants must adhere to the bank’s guidelines and requirements.
Types of Kratom Merchant Accounts
There are mostly two types of payment solutions used by kratom merchants. Let’s discuss these in detail.
Credit Card Processing Accounts for Kratom Stores and Websites
As the name suggests, this solution allows retail stores and e-commerce sites to accept card payments for the sale of kratom products. The online solution comes with features like recurring billing. Merchants can setup subscription payments easily. These accounts can be easily integrated on merchants website. Merchants who meet the requirements can also receive approval for MOTO processing. Retail stores can use credit card terminals for in-person payments. Popular Kratom POS systems can easily connect to these terminals. The online payment solution for kratom sites is of two types domestic kratom merchant accounts and offshore kratom merchant accounts.
Domestic Kratom Merchant Accounts
Some US based banks and and payment processors provide domestic credit card processing solutions to kratom businesses. This type of solution comes with faster settlement and better compliance with local laws; however, it is important to keep in mind that not all domestic processors accept kratom merchants due to its ambiguous legal standing in some states.
Kratom E-check & ACH Processing
As it is becoming hard for sponsor banks and payment processors to support kratom merchants, this has created the need for alternative payment solutions. eCheck and ACH processing fill this gap. A large percentage of Kratom companies in the USA are already using ACH and eCheck. These solutions are simple to implement and are cost-effective as well. As a matter of fact, eCheck is a preferred payment method for various struggling industries like kratom, mushrooms, kava, and fortune telling.
Key Features of a Kratom Merchant Account
High-Risk Payment Processing: As we’ve already discussed, regulatory scrutiny and the potential for legal uncertainty classify kratom businesses as high risk. Regular payment processors that prefer to work in low-risk industries often reject or suspend kratom merchants without giving any notice. Such action can cause significant disruption in the business operations. Experienced high-risk processing companies provide specialized kratom merchant accounts. All of these accounts are equipped with advanced fraud detection tools, which assist merchants in combating unauthorized transactions and suspicious activities.
Chargeback Protection: Kratom merchants may experience higher than average chargeback rates due to customers disputing transactions after receiving the product or due to regulatory changes that may affect the product’s availability. Additionally, misleading claims can lead to customer dissatisfaction. Most kratom payment processors use chargeback alert services and additional tools to reduce chargebacks. If there is a dispute, the payment service provider allows the merchant to provide chargeback representation documents and fight the case.
Regulatory Compliance Support: Regulations around kratom vary by state and country. Currently, the regulations are highly unstable, which makes compliance extremely challenging. Some companies that process payments for kratom sellers are required to make sure that sellers obey the rules of the industry. For example, sellers must use an accurate age verification system, keep disclaimers up to date, follow state-specific rules, and keep up with new rules. By working with compliance-focused payment service providers, kratom merchants can minimize risk and process transactions efficiently.
Fast Settlements: Another advantage of working with a reliable payment service provider is quick funding. In most cases, merchants received the funds within 72 hours of the transaction. The procedure ensured rapid cash flow to improve inventory restocking. For an offshore merchant account, the payment settlement can take 5 to 7 business days, but they are flexible in approving merchants from high-risk industries.
Multiple Payment Methods: Specialized high-risk payment service providers offer various payment methods to these kratom merchants. This includes credit cards, debit cards, e-checks, ACH, cryptocurrency, USDT, and alternative payments like wallets and wire transfers. By adding various these payment methods to the kratom website, merchants can boost the overall sales and increase their revenue.
Kratom Merchant Services FAQ
What Is the Typical Timeframe for Kratom Payment Processors to Approve an Application?
The total time that a kratom payment processor takes to approve an account varies depending on several factors. The most important factor is the availability of KYC documents and a fully operational website. Despite sending a complete list of required documents, only around 30% of merchants send them all at once. While we understand their reasons, we cannot complete approvals without the necessary documents. In most cases, we can set up accounts within 2-3 days if all the necessary documents are available.
What Kind of Kratom Products Can a Merchant Sell Online?
The type of kratom product a merchant can sell online depends on what the processor approves. In general, the most common products that you can find on kratom websites include kratom leaf, powder, capsules, kava tea, digital scales, tea strainers, measuring spoons, muslin bags, merchandise, kratom chocolate bars, softgels, and gummies.
Can QuadraPay guarantee the approval of kratom merchant accounts?
We can guarantee that when you apply with us we will check with our processing partners if they are ok to support your business model. And if our partners are ok for review we will connect you with them. Remember Quadrapay is a reseller and not a processor and that is why it can not do anything when it comes to the decision of account approval or rejections.
Are There Any Specific Compliance Requirements or Regulations for Processing Kratom Transactions?
Kratom merchants must implement two key elements on their website. Since kratom is a substance of concern, merchants must ensure that they have an age selection popup on the site. Only people above the age of 21 should be allowed to access the site. Government agencies have not approved kratom products for medicinal purposes, so merchants should refrain from claiming any benefits. Merchants should place a disclaimer on the site and confirm that the products are not approved or validated by relevant agencies.
