Kratom is a booming business for online retailers. The reason behind this is its ability to offer an array of benefits that include energy boosts, relief from pain, and improved moods. If you are looking to start a business in the industry, you need to understand payment processing and choose an appropriate merchant account to handle the transactions.
Before you begin selling your Kratom products, understand that the industry is considered a high-risk business. As such, there are very few options for handling your sales. When looking for a merchant account, you must understand the requirements specific to this industry.
The first step is to identify a payment processor that offers merchant accounts for Kratom. Also, determine how much it will cost you to open this account. You can compare the rates of various payment processors and select one that offers competitive services for your needs.
Requirements for a Kratom Merchant Account
As a merchant, you can try Kratom Merchant Account to facilitate payments from your customers. In most cases, the deposits are automated. To set up a merchant account for your Kratom business, you need to provide some documents and records to your bank. You also need to fill in some forms for this process.
The documents required will depend on the payment processor you select for your account. However, in most cases, you will need to provide your business registration documents, articles of incorporation, and tax identification number. You may also need a copy of your driver's license.
Here are the steps to follow and create a merchant account to handle your Kratom sales and transactions.
- Confirm Business Legality
Kratom is a sensitive topic. Although it shows various benefits, not every application is scientifically verifiable. The reason is that the plant contains numerous elements that alter chemical reactions and test results. As such, Kratom is not fully legal. Some states allow it while others do not.
Before you get approval for a merchant account to handle your Kratom sales, you must verify if your state approves the use and sale of the products. If your state does allow the use of this plant, you can move ahead with acquiring a merchant account for the business.
- Obtain Legal Business Registration
To open a merchant account for any business, you must have a legal entity registered for the company. You will need your articles of incorporation and business registration documents. Most payment processors will ask you to provide a copy of your business license.
As you plan to get a merchant account, remember that the Kratom industry is high risk. As such, your payment processor will have to verify whether you are legal and authorized to handle sales in the area where the business is. For example, if you are looking to sell Kratom in New York, where it is not legal, your payment processor will reject your application for a merchant account.
In some cases, you will also need to provide other documents such as financial statements, credit reports, and trade references.
- Select a Payment Processor
When looking for a payment processor, you will find that most of them do not offer merchant accounts for Kratom businesses. There are a few processors that facilitate payments for high-risk businesses. You must pick the most reliable service and compare the rates to find an affordable one for your business.
The processor you select will need some information about your business. You must also prove that your residence is the same as the registered business location. If not, you will be required to provide proof of your address.
You must also prove that your business is legal and has the authority to sell Kratom products. Your payment processor will also need some documents from you to complete the verification process. The list of required documents includes your driver's license, ZIP, state ID, articles of incorporation, business license, and tax identification number.
The payment processor will also need some time to verify all the documents. Your patience will be necessary as the process may take up to several weeks. However, once they confirm your legal status, you can use their services for processing transactions through credit card payments.
You can then connect your merchant account with the payment processor so that you can receive deposits for the sales you make on your Kratom eCommerce site.
- Choose Between Onshore and Offshore Processors
There are two options for getting a merchant account: onshore and offshore. You may not know what these terms mean or how they impact your business if you are new to the industry. Onshore processors work with businesses with operations in their country or region of origin. It means that if you live in the US, you will use processors that have offices in America. However, you can also find onshore processors outside your country of residence.
Onshore processors play in many of the transactions they process. They ensure that all laws and regulations are met before a transaction completes. On the other hand, offshore processors work with businesses globally. Offshore processors are not as strict with verifying business and transaction details. They will only check the legal status and compare that with the state laws to ensure it is not against their regulations.
- Compare Rates
When looking for a merchant account, compare the rates among different processors. That will help you find a payment processor that is affordable and reliable.
In some cases, you will need to provide a security deposit or sign up for monthly fees depending on the services you need. Also, ask about the rates for chargebacks and refunds, as these can be costly for your business.
Kratom payment processor accounts are expensive because they involve high risks. The processor will protect your business from blacklisting due to excessive chargebacks. You can choose between monthly or annual subscription or per-transaction costs.
Summary
To set up a Kratom merchant account, you must prove your identity and the legality of your business. Due to its high-risk nature, you must also provide some documents and wait for the processor to complete its verification process. You will also need a payment processor to facilitate the transactions for your sales. The processor will protect your business from fraud and boost your business's success.
