Kratom sales in the United States are soaring as more and more people want to turn to organic alternatives for a better lifestyle. Stimulation of senses and refreshing the mind was never so easy! Kratom has gained popularity, and many people turn towards online shops and local vendors to buy quality kratom. There is only one discomfort in ordering and payments: You cannot use your credit card with every online shop for kratom purchase.
You must be searching for answers, and it directed you to this page. So, we will discuss why credit card transactions are not possible at many online shops. Only hard cash or cryptocurrencies are allowed. But why?
Many vendors do not offer a credit card facility to customers, and then many shops used to provide this facility but stopped. The same goes for other payment forms, such as debit cards and PayPal.
While this issue may be annoying or frustrating for buyers, the vendors do not have much to do. It involves the banks and the policies that the government follows.
Why is a credit card a ‘no’ for kratom purchase?
Nowadays, the majority of people prefer credit and debit card transactions. It is easy to use this option for a wide variety of purchases, both online and in physical stores. Apart from saving space in your wallet, it is easy and safe to use a credit or debit card. Many kratom buyers wish they could use this method of payment for Mitragyna products as well.
The decision to prohibit the use of credit cards to buy kratom is not arbitrary, and the vendor does not have much to do about it. The reason is that credit card companies and credit card processors classified kratom as a high-risk product.
These strict impositions compelled kratom vendors to allow only cash transactions. However, there are still a few selected online shops that are allowed to accept credit cards.
The credit card company perspective
While all consumers get to hear the vendors’ side of the story — many credit card companies have explained why they do not allow kratom purchase.
Allied Payments, one of the renowned credit card services, claims that since kratom is a self-medication tool and has an affinity with narcotic substances, banks cannot offer merchant services to kratom vendors and buyers.
Kratom suppliers are turned down since the banks, and other financial institutes cannot allow the sale and purchase of a controversial substance such as ketum.
Merchants cannot find card processors who can collect payments for them, causing delays in the online shops’ income.
There are many legal and medical issues regarding the Mitragyna industry in the United States. Scientific research does not clear the ambiguity related to ketum, so many financial institutions find this industry a no-go area.
Recent studies and reports show that while Mitragyna consumption is increasing globally, the dependence and withdrawal issues are also growing. All financial services in the country try to stay safe and offer services to only the vendors and industries supported by the legal system.
The FDA does not recognize ketum for its medicinal properties. Hence many banks and credit card companies do not take the risk of working with them.
NIDA, DEA, and FDA on kratom
The National Institute of Drug Abuse (NIDA) repeats what medical research says about kratom. This organic substance has several adverse side effects, and people should not use it due to the dependence factor.
The Drug Enforcement Administration (DEA) claims that kratom has a lot of similarities with drugs, and people should not use it due to the number of deaths associated with ketum consumption.
The FDA also does not approve of kratom products and does not regulate the production. However, to curb the opposition of these agencies and administrations, ketum manufacturers closely follow the GMP standards.
Even so, banks and credit card companies follow the trends of the federal bodies that rule out kratom’s efficacy. There is no business aspect related to a prohibited or unrecognized industry.
In some cases, credit card companies do not want the risk of doing business with a merchant who sells or buys kratom as the status of this substance is still not clear in some cities and counties.
Banking is a risky business, and to stay safe from non-payment and loss of money, banks and credit card processors do not encourage transactions from doubtful industries like ketum.
While all users know that this is not the case, prudence demands financial institutions to remain wary of this substance, so there is no risk involved!
What is high-risk credit card processing?
High-risk credit card processing is not associated with particular products but with the industry type. Credit card companies consider several industries as high risks, such as adult entertainment, gambling, and substances that are not pharmaceutical. Even dating sites and jewelry stores are top risk products and trades along with certain travel services and telecommunication services.
Most card companies want to stay away from these industries as there is a higher chance of fraud and dishonest customers. All these factors make it hard for a vendor to find a credit card processor ready to trust the business.
Simultaneously, PayPal and Square also focus on low-risk companies that have reduced risk of fraudulent cards or transactions from people who do not pay on time.
The buyers’ perspective
Many buyers might want kratom credit card processors to accept transactions for purchase, but there are many reasons why they prefer cash payments. For example, many buyers want to remain discrete as they buy organic substances such as Mitragyna or CBD tincture.
However, if this person buys kratom and pays on a credit card, the information will go to the card processor. This information sharing makes credit card payment unfavorable for several buyers. Additionally, many regulatory organizations are pushing to discourage sale and purchase of kratom. Many buyers do not want to have kratom purchases on their credit card history, as it might be questionable by some authorities.
When you pay cash, there are many discounts that you can avail of. Kratom online shops in the United States offer discounts and vouchers to people who pay immediately and rely on cash or cryptocurrencies. Any payment method that is not immediate might not lead to providing discounts and sale prices.
Majority online shops do not do this, but several vendors promote cash payment by offering higher discounts on it. Similarly, you may have seen a banner on an online shop that reads, ‘Save money by paying through Bitcoin’ or ‘Discount for customers who pay cash.’
These payment methods do not include any tax or interest, whereas debit or credit card payments have additional charges that may become uneconomical.
All these factors show that credit card payment is not the best option, and buyers can opt for other methods.
What if a kratom shop offers credit/debit card payments?
Usually, credit card companies in the United States do not allow kratom shopping options. Still, if you find a shop that offers credit card payment, it may be a more reliable company with a separate parent industry. For example, a tea company introduces kratom tea and makes it available on the website.
People can shop kratom along with other tea products and pay with their credit cards. This transaction is possible as the primary industry is tea production and sale.
Foreign companies govern many kratom online shops in the United States. The origin-country of these companies might not have the same policy as the United States. Therefore, credit card transactions are possible.
If you think that it is convenient to buy kratom products online through your credit or debit card, you can always go for it. However, many other options are equally suitable and advantageous.
What are the other options?
There are many options available for buyers who wish to order kratom from online shops and local vendors. Apart from hard cash upon delivery, the customers can resort to the following:
E-checks: These are one of the most common modes of payment for kratom. These are safe as there is no documentation or requirement to share bank details. Moreover, customers get protection from Regulation E, which allows you to revoke any payment within 60 days and report any fraud so that your money stays safe.
Cryptocurrency: Bitcoin and other cryptocurrencies are safe and do not require sharing valuable information. Vendors are still not entirely acceptable to this mode, but numerous online shops allow this payment method.
Money order: Old and trusted process of transferring money is by mailing it through money orders. Many kratom merchants allow this method as it is safe and does not reveal any sensitive information.
Credit cards are a very convenient method of payment, but in case your kratom vendor does not have the facility, you can rely on these modes of payment for secure transfer of money.
Credit card processors do not wish to do business with industries or high-risk companies in the United States. These include many business types such as lotteries, gambling, adult entertainment, and kratom. People who want to buy kratom easily can opt for various methods other than credit or debit cards. There are many convenient ways to pay for kratom online or at a local head shop.
We have discussed why people cannot order kratom on bank cards or credit cards to understand the kratom online shop and its compliance with the legal, financial system.