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News And Legislation

Banking and CBD Regulations – Merchant Services in the CBD World

Cannabidiol also known as CBD is the second most common and active compound found within cannabis plants (marijuana and hemp). Today, CBD is a major component of holistic, herbal, alternative medicine. It’s currently making its way into main stream medicine as more users’ flock to the compound because of it is numerous benefits. Another reason for CBD’s surge in popularity is its inability to induce feelings of high in users compared to THC or the other cannabinoids found within marijuana. according to this report by the World Health Organization – “In humans, CBD exhibits no effects indicative of any abuse or dependence potential…. To date, there is no evidence of public health related problems associated with the use of pure CBD.”

The effects felt in the body happen when these compounds react with the body’s cannabinoid receptors. These receptors are a part of the endocannabinoid system. There are two cannabinoid receptors in the body:

  • CB1 receptors are located all through the body especially in the brain. They are responsible for movement, pain, mood, appetite, memories and other bodily function.
  • CB2 receptors are more within the immune system of the body. They are responsible for regulating pain and inflammation. 

Introducing the 2018 Farm Bill

In 2018, the federal government passed the “Farm Bill and it redefined what the law called legal cannabis.  According to this new law, industrial hemp and hemp derived products became legal as long as either one had a THC amount of 0.3% or less. These substances would be allowed to be sold and consumed publicly. This bill removed hemp from the list of controlled substances as long the amount of THC within it is 0.3% or lower. 

It is important to not confuse industrial hemp with marijuana or hemp-derived products. Marijuana remains an illegal and controlled substance in the country. We should also mention medical marijuana which at the point of writing is legal in 33 states. 

Thanks to the passing of the farm bill, it has been easier for hemp-related businesses and hemp-derived CBD product institutions to enjoy certain banking privileges they were denied from accessing before. But it is not enough, as a newly legalized industry, companies producing hemp and hemp-derived products have been shunned by most financial institutions. It’s a shame. Instead of embracing hemp wholeheartedly and seeing these businesses for what they are, a new opportunity for the financial industry. CBD and hemp regulations when it comes to banking and merchant services are woefully behind.

Gains in CBD & Hemp Banking Regulations

In fact, a report estimated that the global hemp industry shall hit $14.6 billion by 2026 and the US CBD market is on track to hit $7 billion by 2023! That is a lot of potential revenue that financial institutions are missing out on. Why? Because of the less-than-ideal laws that has prevented financial institutions from building specialized products for hemp companies. 

Before the bill, hemp companies often had to operate as a cash only business. Or, they had to pay high-risk fees in order to use financial services. On top of that, most of those services available are at the mercy of the service provider. What this means is, these services could go away without any notice, leaving the businesses to suffer the consequences. This is a tough fact for many business owners, however CBD regulations and the hemp industry are volatile at best.

And although today’s climate is considerably better than what it was a few years ago, the facts are clear. Financial institutions need to do more to cater to the needs of hemp and hemp-derived companies. As these products become more essential to the lives of millions across the country, it is important users have easy access. That is, without having to wonder if their bank would complete their transactions.

E-Check as a Solution

We’ve found E-Check as a solution to this banking conundrum- it’s a safe and secure method of payment that isn’t sketchy at all (CBD and hemp companies have been using it for years). Plus it doesn’t come with all the risks of many CBD merchant services!

Find out how to use E-Check to pay at our blog here.

Shop Premium CBD Here!

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Jasmin Weber

Jasmin Weber is a seasoned professional in the kratom and CBD industry, contributing her expertise to Grassroots Harvest and GRH Kratom for over three years. A prolific writer, Jasmin crafts engaging content for both the cannabis and kratom websites of these companies and is a recognized voice in related online communities. With a deep-seated passion for the ever-evolving cannabis field, Jasmin dedicates herself to staying at the forefront of industry developments. Jasmin holds a Bachelor of Arts in Human Communication from Trinity University, San Antonio, where she also minored in Creative Writing and Religion, graduating in 2016. Her academic background enriches her ability to communicate complex information clearly and creatively. For collaboration opportunities, Jasmin can be reached at She is keen to explore innovative ideas that advance understanding and engagement in the cannabis and kratom sectors.Bachelor of Arts in Human Communication with Minors in Creative Writing & Religion. Feel free to contact the author at if you have any ideas for collaborations.

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