Why do Kratom suppliers have credit card processing problems?


Several nations see herbal products as a risky component. Thus, many countries outlaw these natural treatments. Kratom is one of the naturally occurring compounds that benefit human health. Companies struggle with complications while using credit card payment systems. Why do Kratom suppliers not offer credit card transactions? The Kratom merchants experience restrictions in sales due to the administration’s intervention. Traditional credit card processors do not trust such businesses. Hence, the Kratom sellers must seek alternative options. Kratom requires a high-risk merchant account that is hard to achieve.

Kratom credit card processing: overview

Kratom is the Mitragyna Speciosa tree that offers many benefits. Many sellers sell it as a pill or powder form to promote stimulating effects. It has the potential to interact with other medications that can cause trouble. One must take a minimal dosage and wait for at least 45 minutes to check out its effects on the body. Its psychoactive nature becomes a risk for the seller company. It may cause toxic effects due to an imbalance in dosage. It might lead to sedation on increasing the dosage levels.

Both buyers and sellers face legal issues. Thus, people look for credit card processing options for Kratom. However, the present-day industrial status makes many processors stay away.

What issues do the suppliers combat while selling Kratom via credit card processing?

Let’s unwind the working procedure of credit card processing. The issuing bank is the customer’s cardholder bank. An acquiring bank is the merchant’s bank. The consumer bank exchanges the credit of funds with the merchant’s acquiring bank while making a transaction. It seems smooth but includes complex processing. The transfer of funds is not so immediate and speedy. However, a merchant account struggles with a line of credit and can get into fraud. The cardholder bank does not face such issues.

But, how does it impact Kratom? There is a two-factor issue that hits the Kratom industry sales:

Firstly, the American government considers it a drug of concern. The federal government does not regulate the Kratom herbal remedy. Its interactive nature with other medications can cause death. So, it is a high-risk industry that struggles with severe restrictions. Kratom’s business online has to suffer without Kratom credit card processing.

Secondly, the Kratom industry offers a low charge-back rate and satisfies the consumers. The trouble lies with the card schemes. Card schemes opt for risk-free transactions. They make rules and enforce them on consumers acquiring banks without any feedback. These schemes divide the merchant account into three categories: low-risk, high-risk, and prohibited. Low-risk and high-risk businesses are not as complex as the last category. Kratom falls in the prohibited category that does not allow acquiring banks to make transactions. The card schemes can charge the consumer with a heavy fine and seal their credit card. Thus, acquiring banks search for strategies to destroy merchant account prohibited transactions.

How are some Kratom vendors able to accept credit cards?

The merchant might have to face challenges and risks for credit card acceptance. Let’s explore the many ways through which Kratom vendors can accept credit cards:

1. PayPal/ Square/ Stripe

Merchant accounts, like Paypal, Square, and Stripe, are the payment aggregators. These companies do their underwriting on merchants. They are different from banks and do not support frauds and merchant analysis. However, their internal algorithms can flag transactions and business activity that is a big downside. Flagging can lead to interaction with a human underwriter.  The prohibited accounts can suffer from permanent termination, and they can also lock merchant funds for a minimum of six months.

2. Offshore aggregate accounts

These accounts act as a bridge between a regular domestic account and PayPal. The merchant faces scrutiny in this processing system.

The account seems like a cesspool between the three categories of merchant account. International communities offer lenient card schemes. However, they can still charge a fine or shut down. Merchant experience suggests that these accounts do not last over six months. Their downside is the cost that takes minimal 9% fees and 10% rolling reserve over six months. This type of deal can lead to loss of money because it takes one to two weeks to process a day’s payout. Also, the shutdown of such merchant accounts does not provide a payout.

3. Hiding information to get a merchant account

This option seems lucrative and worth giving a try for Kratom vendors. But, this payment processing system is illegal! The vendor has to provide a fake website that will show the sale of non-prohibited goods. The banks claim these businesses as low risk and approve their account. Merchants often use the proper software to stay safe from the acquiring banks’ automation detectors. But, it is known as money laundering that can put you in jail for thirty years.

What must a Kratom vendor choose to make transactions?

Many Mitragyna vendors opt for electronic checks these days.  It does not require card schemes for bank governance. Most banks are not Kratom-friendly, but some banks allow them with ease. Echecks are not complex, and the vendor can receive the payout within 24-48 hours. It takes this much time for processing and verification of transactions.

What about bitcoin transactions for Kratom products?

Bitcoin has become the modern way of payment processing in the twenty-first century.  It offers a better degree of discretion, and one can verify the blockchain payments without any hassle. Bitcoin is not a subject of the same scrutiny that merchants suffer from other payment options.

What about transaction safety?

It is a complex matter because the past events of cryptocurrencies were not secure. One needs to secure these bitcoins in cold storage. Also, it is easy to convert cash into bitcoin.

Are there any other options available for Kratom vendors?

COD is one of the easiest and secure ways for those who don’t want to invest in cryptocurrencies. Many vendors use ut as a mode of payment to increase Kratom sales. The Mitragyna seller ships the Kratom product to the consumer’s doorstep. The consumer has to pay in cash upon receipt of the package. The only drawback is that it costs additional charges with a shipping fee.


Consumers and sellers need to acknowledge every source of payment method available nowadays. The merchant must ensure that the payment processor is safe and secure for use. Bitcoin and e-checks are the safest options today for Kratom vendors. However, the leniency in federal regulations and improvement in technology is likely to appear in coming years. The further decades will see an adaptation of privacy coins to make an online purchase of Kratom products feasible. Credit card transactions are risky for Mitragyna-based products as of now. The situation might change with ease of regulations and banking system.

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