Categories
Digital Currency Ecommerce

How to Process Transactions on a Kratom Website

If you’re thinking about launching a website that sells products with regulatory issues like kratom, then you may have problems finding a payment processor. Although kratom is legal at the federal level, there are certain states and cities that ban this herbal supplement. As banks tend to be risk-averse, they will likely reject your application for a merchant account. So, what should you do?

Set Up Bitcoin Payment Processing

Before you start your search for a payment processor, you can start collecting bitcoin and other cryptocurrencies. Keep in mind that crypto is volatile, so you may want to convert those funds to fiat currency quickly. That said, if you’re selling numerous types of kratom on your website, then you’ll want to give people this payment option. There are third party bitcoin processors, and some of them will work with you, for a fee. However, you can cut down on your fees by setting up a Bitcoin processing server, using open-source software like BTCPay. This will require some technical know-how, so you might want to hire a professional web developer to set this up for you.

Accept ACH Transactions

There are many payment processors that will process ACH transactions for you. ACH transfers tend to be lower risk for the parties involved, so approval tends to be easier. The challenge here is that you will need to wait for the digital check to clear before funds are available. This requires you to keep track of old orders, sometimes for several weeks, before you ship product to your customers. As such, you could have some cancellations due to the slow service. You could ship early, but you risk losing the funds if the check doesn’t clear.

Try a High Risk Merchant Account Overseas

This is the riskiest way to process transactions. However, it also tends to convert the best. Most people won’t want to deal with the hassle of making crypto or ACH payments. So, if those are the only ways you collect funds, you could have low conversion rates. Adding credit card processing will help substantially. The problem is that US merchant processing companies often will not process kratom transactions. You may end up going through a bank in Africa or elsewhere. They will typically hold around 10% of your money in escrow before releasing funds to you, in addition to their high fees. If you pick the wrong bank, you could lose all of your funds. So, be careful with this method.

Get Familiar with the Law

The FDA is limiting imports of mitragyna speciosa into the US, and has seized property from herbal remedy companies that have made medical claims about the product without their approval. Therefore, it is important to learn the law, and the risks associated with selling kratom before you invest in this industry. The content on your website must be free from any false advertising, or medical claims that are not backed by scientific studies. You must also avoid shipping the product to jurisdictions where it is prohibited. Read the news about the history of crackdowns, so that you understand what could happen in the future.

Starting a Kratom ECommerce Website Ain’t Easy

There is a lot of demand for this herbal remedy. It is touted to help people with their stress and anxiety, and it is even reported to help people get over their opioid addiction. It’s a lot of work, and it’s risky to get into this business. But, if you want to try it out, then consider the steps above.

Categories
Digital Currency Ecommerce

Bitcoin Payment Processing Solutions

The future of the world economy is uncertain. COVID-19 has sent ripples through international supply chains, while local communities are on lockdown. Governments are sending massive cash payments, amounting to trillions of dollars of deficit spending, to their citizens. Consequently, we may experience hyperinflation. If this happens, then crypto may be a safe haven from the demise of fiat currency. If that happens, then we may see an explosion of digital currency transactions online, where bitcoin payments will replace credit cards and Paypal.

Third Party Bitcoin Processing Solutions

There are plenty of third party vendors that offer plugins for various ecommerce platforms. These bitcoin payment gateways charge a small fee for enabling digital currency transactions on a website. Everybody in the crypto universe knows about Coinbase, but here are a few other options:

Your Own Bitcoin Processing Server

What happens when you get rejected from 3P bitcoin processors? For example, what do you do if you sell holistic remedies that fall into a gray area at the state level? An herbal supplement like kratom, for example, is legal in most states, and it’s legal at the federal level. But, it falls into a gray area and is banned in a few cities and states. If you get approved by a 3rd party bitcoin payment gateway, you may eventually find your account closed. When that happens, you will scramble for a new solution. Or, you may just prefer not to pay fees on every transaction. If this is you, then consider installing your own bitcoin server. One provider is BTCPay Server. You will need a server administrator to set up a hosting account for you. And, you’ll need to pay monthly web hosting fees. But once you’re set up, you’ll be able to process your own bitcoin payments at virtually no cost over the standard mining fees.

Your web administrator should be able to read their docs and install the solution for a variety of shopping carts. WooCommerce is popular among WordPress websites, and there are documents for Magento and other shopping carts, too.

Categories
Ecommerce

Financial Technology, Cannabis and Future Legislation

Now that the federal government is easing up on its stance against cannabis, entrepreneurs are capitalizing on the booming industry created around this plant. Some places, like Denver, Colorado have more medical marijuana retail outlets than coffee shops. In california, the industry is worth over $3 billion per year.

The Cash Business of Cannabis

Perhaps as a remnant of its previous status as an illegal street drug, cannabis transactions are largely done in cash. Medical marijuana shops are depositing bags full of cash into their bank accounts that weigh as much as their bags of dried plant parts. Even so, the government still wants its piece of this otherwise free exchange of goods and services. Consequently, the cannabis industry is heavily regulated, with every step in the supply chain carefully monitored. This process, known as “seed to sale” requires technological inventory management systems and POS software. Despite this, some shops are making due using simple spreadsheets, but compliance continues to become more difficult. Furthermore, some banks are not friendly to the wacky weed and legitimate business owners are having trouble finding a home for their bags of cash. This may subside when the federal government finally gets with the 21st century and removes cannabis from the controlled substances act. Until that happens, cannabis shops largely cannot take credit card payments. Visa does not allow it. The unusual aspect of this story is that this antiquated, over-regulated system makes electronic payments less likely, which means that it may be less likely for the federal government to get its hands on a portion of the revenues generated.

An Opportunity for Fintech Innovators

This is where innovators may find an opportunity for wealth. Companies like Visa will not process the payments, but a crypto-backed system, for example, may be willing to take on the temporary risk of processing such payments. Already, Metrc, BioTrack , and MJ Freeway are processing such payments. Furthermore, POS companies are taking a shot at integrating their platforms, too. These include Flowhub, Green Bits, and Treez (notice a trend?).

Eventually, the industry may become less regulated, and this space will begin to blossom. We may even expect gray-area technocrats like John McAfee to enter the space, too. Until then, keep watching the trends.

Categories
Ecommerce

Emerging Financial Technology Trends in Latin America

Ecommerce technology has been exploding in Latin America. As a result, there developed a need for online transaction processing. This capability enabled the growth of ecommerce, as digital transactions continued to rise. Consequently, investors have continued to fund fintech companies in Latin America. These include PayU, Braspag, Moip, PagSeguro, Mercado Pago, and others. What will we see in the future?