Category Archives for "Popular CBD Questions"

The World of Credit Card Processing For Hemp and CBD Companies

Why CBD and Hemp Companies Have a Hard Time Processing Credit Cards.

Unfortunately the credit card processing for CBD and Hemp related companies is let’s say… complicated.

This initially throws a lot of people off, especially if you are new to CBD and Hemp to begin with. The answer to this question lies in the merchant category codes that credit card processors use when processing credit cards. 

Merchant category code examples are things like groceries, utilities, gas, and many more. At this time items that contain Hemp extracts are lumped in and classified with marijuana and cannabis. This is where the confusion of the laws and regulations come into play. 

Federally marijuana is still illegal and because of that any credit card processor, who are typically large banking institutions, stay away from processing these transactions. These banking institutions are FDIC insured and tied in with the federal government and the federal reserve. Currently there are no merchant codes set up that clarify the difference between Hemp products and marijuana products…

Although we know anyone who has tried an Industrial Hemp product vs a marijuana product is SURE to know the difference between the two. 🙂 

The solution to the problem will come when a distinction is made from the federal government between Hemp and Marijuana. So How do other CBD or Hemp companies process credit cards? Here are two options I here are used the most:

  1. High Risk merchants that process cards from international banks. These fees range from 8-10% processing fees plus extra fees for things like chargebacks, monthly servicing, and per transaction insurance charges. They also have 1-2 week delays for payments which makes it even more difficult for start up businesses to grow. 
  2. Disguise the products by using a brand name and/or product names that do not have words containing CBD or Hemp. These loop holes are getting shut down more often now., and when they do they typically seize the funds in holding.(even if products have already been sent) 

With the EXTREMELY fast growing and HOT market of CBD and other Hemp based health products we hope that it will not be much longer before this distinction is made and clarified to the public. We wanted to write this article to inform the public about the issues that Hemp based companies face. As awareness grows in our own communities about Hemp and CBD products, and the impact they are having on our nations health, we hope this information will help voters to make educated decisions regarding Hemp related issues.

These issues are one of the bigger reasons Hemp based companies have to charge more for their products currently. There are logistical issues to collect payments and more heavily intensive labor is needed to process orders.

Currently most normal online retailers can utilize software to process cards, prepare shipments, and hit a button to print a label and ship. While Hemp based companies now have to take manual orders by phone, figure out logistics on how to collect money, and then fill orders be hand resulting in significantly higher labor costs. In conclusion we have hope and faith that as more people are learning the facts and seeing the heart wrenching and emotional testimonials coming out, they will start to speak up and stand for the changes needing to happen. 

 

Related articles: Legalities of Hemp Based Products in the US. 

http://hempconnex.com/legalities-of-hempcbd-based-products/

Unfortunately the credit card processing for CBD and Hemp related companies is let’s say… complicated. This initially throws a lot of people off, especially if you are new to CBD and Hemp to begin with.

The answer to this question lies in the merchant category codes that credit card processors use when processing credit cards. These categories are things like groceries, utilities, gas, and many more.

At this time items that contain Hemp extracts are lumped in and classified with marijuana and cannabis. This is where the confusion of the laws and regulations come into play.

Federally marijuana is still illegal and because of that any credit card processor, who are typically large banking institutions, stay away from processing these transactions. These banking institutions are FDIC insured and tied in with the federal government and the federal reserve. Currently there are no merchant codes set up that clarify the difference between Hemp products and marijuana products… Although we know anyone who has tried Hemp products vs a marijuana product is SURE to know the difference between the two. 🙂

The solution to the problem will come when a distinction is made from the federal government between Hemp and Marijuana.

So How do other CBD or Hemp companies process credit cards?

  1. High Risk merchants that process cards from international banks. These fees range from 8-10% processing fees plus extra fees for things like chargebacks, monthly servicing, and per transaction insurance charges. They also have 1-2 week delays for payments which makes it even more difficult for start up businesses to grow.
  2. Disguise the products by using a brand name and/or product names that do not have words containing CBD or Hemp. These loop holes are getting shut down more often now., and when they do they typically seize the funds in holding.(even if products have already been sent)

With the EXTREMELY fast growing market of CBD and other Hemp based health products we hope that it will not be much longer before this distinction is made and clarified to the public.

We wanted to write this article to inform the public about the issues that Hemp based companies face. As awareness grows in our own communities about Hemp and CBD products and the impact they are having on our nations health, we hope this information will help voters to make educated decisions regarding Hemp when voting. These issues are one of the bigger reasons Hemp based companies have to charge more for their products currently.

There are logistical issues to collect payments and more heavily intensive labor is needed to process orders.

Online retailers can utilize software to process cards, prepare shipments, and hit a button to print a label and ship. While Hemp based companies now have to take manual orders by phone, figure out how to collect cash or checks, and then fill orders be hand resulting in significantly higher labor costs.

In conclusion we have hope and faith that as more people are learning the facts and seeing the heart wrenching and emotional testimonials coming out, they will start to speak up and stand for the changes needing to happen.

Related articles: Hemp Legalities

 

Legalities of Hemp/CBD Based Products

This is what we understand about the laws and legalities of CBD possession, consumption, and distribution in the US. This is just a summary as an introduction to the legal landscape. We recommend independent research and consultation with an attorney for any questions regarding individual circumstances.

We partner with suppliers who grow hemp under The Agricultural Act of 2014 (the Farm Bill) and the Colorado Hemp Act of 2014. The Farm Bill allows for hemp to be farmed as long as the grower is compliant with state law and that the THC content of the plant stays under 0.03%. To put this into perspective a dispensary in Colorado who is selling recreational marijuana would probably have THC amounts close to around the 20%-40% range or higher.  The farms we partner with here in Colorado are registered with the Colorado Department of Agriculture to be in accordance to the Farm Bill Act.

After the hemp is grown we process it with a company located in a mountain town in Colorado. From there they use ethanol to extract and make our products. (see full reasons on hempconnex.com/info) During the extraction process the THC matter in the plant usually gets even further dwindled down resulting in our test results coming back at 0% THC(amounts so low you cannot detect any) Once extracted they formulate and bottle our products in house Under typical Good Manufacturing Practices. These are constantly evolving and changing as the industry grows and we strive to stay on the leading edge of these changes. 

You are sure to find articles, statements, and internet chatter about good faith disagreement between people’s interpretations of the laws, particularly with respect to hemp’s relationship to the Controlled Substance Act and the Pure Food and Drug Act and the policies of different federal agenies. As you can imagine on the internet there is no response or interpretation that hasn’t been said! 🙂

We are committed to conducting our business in a good ethical and legal manner. We know there is going to be some resistance and push back, because in every good thing you are sure to meet challenges you must work with and overcome.

One of the biggest reasons we are in this is to help navigate some of these uncertainties for people  and push for legislation to resolve any confusion and ambiguities for everyone. These changes start here with all of us investigating our own thoughts and speaking with our state legislators about the change we think we need. I know Oklahoma legislators know about CBD and are doing everything they can to understand it better and make fair laws for the state and the people. We hope to help push this movement along by providing resources and information for people to look at and make their own informed decisions. 

The internet is full of AMAZING stories of how CBD and Hemp can potentially help benefit people and our society. I know of several people who completely depend on it for their quality of life. I know of customers, patients, and kids who have terminal cancer, epilepsy, and other major illnesses that rely on CBD to try and raise their quality of life the best they can with their situation. For me and our family, we felt a heavy heart and a calling from God to help these people and take a risk to stand up for what we feel is right and help spark the changes that need to be made. 

Unfortunately at this time I can’t sit here and answer with 100 percent certainty some of the questions people have asked. I can only present the information, tell you our opinions, and share the opinions of our customers and friends. 

We believe in life, that nothing is 100 percent certain, and we must ultimately follow our hearts and conscious of what we feel we need to do and are called to do. We hope this may inspire others to get involved or to make their own leap of faith in their life. 

Hemp/CBD Oil and Drug Testing

Can I Fail a Drug Test Using Hemp/CBD Oil?

This has been a very popular question from people and a tough one to directly answer. I have not personally tested this theory but my brother, friends, and customers have. No one I have known or heard of has failed a drug test while taking hemp products that contain 0%(untraceable amounts*) of THC.

Here is why I and other experts in the industry believe that you would not test positive for a drug test.

One of the most used testing platforms that employers use is SAMHSA (Substance Abuse and Mental Health Services Administration) for their drug testing standards. At the time of my research the acceptable cut off for THC in the body for the testing standard is 50 ng/mL.

A recent study in pub med evaluated the impact of hemp food consumption and how it effects drug testing in the workplace.

The study states that the highest subject tested for 5.2 ng/ml which is roughly 125 ml of hemp oil.

Our products Daily Connex and Daily Connex Extra Strength contain only 60 ml of hemp oil in the entire bottle. (2 FULL BOTTLES A DAY)

Remember that most employers use SAMHSA standards which is roughly 50ng/ml for a positive test result.

This is why Hempconnex, industry experts, and the study in pub med all conclude that Hemp/CBD product consumption appear to show low enough levels to not trigger positive drug tests.

***PLEASE READ DISCLOSURE***

We are not medical doctors, lawyers, or interpreters of the law. Our answers to questions are formed by our research, personal experience, experience of our customers, and other experts who have dedicated their lives to this industry and movement. Our mission is to take this information and help articulate and communicate it in a way that people can understand and relate to better. Please don’t take our opinions as fact or advice but rather as information to help you make the best decision for you.

Link to Study:

https://www.ncbi.nlm.nih.gov/pubmed/11765026

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