Shopping Cart

What's Up with Selling CBD Online? Largest CBD Merchant Processor Elavon Shuts Down Everyone!

What's Up with Selling CBD Online? Largest CBD Merchant Processor Elavon Shuts Down Everyone!

Elavon Cbd merchant bank closing

CBD businesses across the industry are in a state of panic, as the largest merchant processor Elavon/US Bank is shutting down everyone! According to 2accept.net, 90% of CBD companies used US Bank to take credit cards.

Everyone is asking themselves - is it true, and what the hell is going on? Adept Payments tells us that a few bad apples used the Elavon system to sell actual marijuana, which would violate their terms of service.

Redditor u/Ewil1337 posted that he received this letter:

Dear XXXX,

You may or may not have heard the disappointing news yesterday from Elavon/US Bank.
Effective immediately, they are no longer accepting CBD merchants and will be closing all existing MIDs. CBD is moving to their prohibited list.
Any CBD applications currently under review will be declined.

Existing merchants, who are already boarded and/or currently processing will receive notice from Elavon that they will have 45 days to move their account to an alternate processor.
This 45-day window gives us some time to board you at an alternative solution, as you can continue processing with Elavon at least through the end of April.

Unless you want to process overseas and deal with heavy fees/reserves, here is a list of alternate domestic services that may be able to help:

Mission Valley Bank

  • Interchange + Pricing

  • No Startup Costs

  • No Early Termination Fee

  • No Reserve (case-by-case)

  • Daily Settlement

  • Accepts:

  • Vape & Flower (on a case by case)

  • Business must be well funded capable of $100k/mo ($50k+ in the bank)

  • Compatible with Shopify

  • Startups Accepted

 

Esquire

  • Interchange + Pricing

  • No Startup Costs

  • No Startups Processing History Required Processing Over $80,000

  • No Early Termination Fee

  • $10 Monthly Fee

  • Reserve to be evaluated on case by case

  • Daily Settlement

  • Vapes Permitted

  • Flower Prohibited

  • Compatible with Shopify

  • Merchants with 3 months of processing history can expect approval volume to match whatever merchant's history shows plus up to 20-50% above that

  • Merchant may be required to open DDA with bank (no charge checking with the ability to move money out next day)

 

Bolt Pay

  • 7% Discount Rate

  • Startup Fee $400

  • Early Termination Fee $500

  • Reserve Required

  • Settlement: daily with a 7-day delay

  • Prohibited:

  • No Flower

  • No Vape Products

  • No Trial or Continuity

  • Other Details:

  • US or EU corps are accepted

  • Can support Continuity CBD Products if merchant has 3 months processing history

  • NOT integrated with Shopify

  • NOT integrated with NMI or Authorize.net; must use Fluidpay Gateway

  • Integrated with Connective

  • # of Mids are unlimited

  • Startup Accepted

Have any of these worked for your business? Let us know in the comments below!


Older Post Newer Post


0 comments


Leave a comment

Please note, comments must be approved before they are published