Q+A: Why is CBD Commerce a Hot Issue for Payments Professionals?
Opportunities around cannabidiol may feel like a potential goldmine, but the CBD marketplace is a ‘wild west’ of bad actors and opportunists. Although federal legislation removed certain kinds of CBD from the DEA’s list of controlled substances, FDA regulations and constantly changing state laws have created substantial uncertainty about how and where CBD products can legally be sold.
In an upcoming ETA Webinar on October 16th at 1:00 pm, LegitScript experts will provide the latest updates to the CBD regulatory landscape, explore examples of instances in which the FDA has cracked down on CBD merchants, and debut a brand new solution for safely onboarding merchants with legally compliant CBD products. The webinar is free for ETA members.
The webinar presenters are:
- David Khalif, LegitScript
- Catherine Krafft, Program Manager, CBD Certification Program, LegitScript
- Luca Jarone, Associate Director of Client Partnerships, LegitScript
In advance of the webinar, Transaction Trends interviewed the webinar presenters at LegitScript to get their insights into the webinar’s content and value.
Why is CBD Commerce such a hot issue for payment professionals?
The CBD industry is expected to reach as much as $20 billion in the next five years, and CBD manufacturers and retailers — particularly those wanting to accept card-not-present transactions — will want a reliable way to process their payments. This means there is incredible opportunity for payment service providers to add a new revenue stream to their business if they can find a way to do so that is adheres to rules and regulations.
What are the key challenges and opportunities in CBD Commerce?
The regulatory landscape is one of the major challenges: not only is the 2018 Farm Bill complex in its definition of permissible forms of CBD, but the patchwork of state laws makes it difficult to keep track of where it is legal to sell CBD in the US. For payment professionals who take the time to understand the regulatory complexity, or who partner with a third-party that specializes in this, there is immense opportunity to be one of the first to grab a large piece of this industry.
What will payment professionals take away from this webinar?
Payment professionals will get a better understanding of the regulatory landscape of CBD, including federal, state, and local laws. The webinar will cover important findings from a study we conducted about substandard CBD products and real cases of transaction laundering and other financial crimes. Attendees will hear about the major roadblocks to onboarding CBD merchants, and learn about ways in which they can accept CBD merchants into their portfolios more confidently.
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Click here to register for the webinar.