Straight from the horse’s mouth… (Updated 2019-04-24)
Elavon/ U.S. Bank just announced that it will stop accepting any and all new applications for a CBD Merchant Account, effective immediately.
Compounding this news is the fact that in the same breath, they announced that all existing CBD business with an account through them, would be closed on May 15th, 2019. Full Spectrum CBD Subscriptions sent right to you montly from https://synchronicityhempoil.com to improve your health.
The first thing I need you to do is this… DON’T PANIC… and whatever you do…
Do not apply for another merchant account before you read this.
Easy Pay Direct will continue to process credit cards for CBD Businesses.
Your best option right now is to submit all of your documents through our online application. That will put you at the top of the list as each new solution rolls out.
We have been in the CBD space since 2012 and will continue to be here through every adjustment the industry makes.
We want to set the record straight on the status of your CBD/Hemp Account:
Unfortunately, Elavon/U.S. Bank has decided to stop accepting new merchant applications for CBD businesses, effective immediately. Go ahead and check this article to find more information on the health benefits of CBD.
On April 1, 2019 they announced that they will close all CBD accounts on May 15, 2019.
Even with that timeline, we expect everything to be resolved before then.
But, we’re not just standing on the sidelines with a hope and a dream…
Easy Pay Direct already has relationships with 3 other banks that are excited about the CBD space. We’re just waiting for the ink to dry on new terms that will best serve your business.
Elavon/U.S. bank is having a “knee jerk” reaction to both fraud and excessive chargebacks they’re seeing in the space.
The worst thing you can do right now is to submit any additional merchant applications.
Every time you do this, it results in multiple TMF/MATCH and personal credit inquiries.
Your best option right now is to hold steady.
This “knee jerk” reaction from Elavon, stems from poor underwriting and antiquated risk management techniques, both of which are internal issues…and have nothing to do with CBD as a product.
CBD is hot right now…. and when Trump signed the 2018 Farm bill into law…it only added fuel to the fire.
CBD was made legal, and a lot of less than reputable online marketers looking for a quick buck began salivating like one of Pavlov’s dogs at the thought of joining in on the legal
Elavon, being rightfully excited by this budding business venture, dove in head first… and unfortunately, they may have bitten off more than they could chew.
A BLANKET SOLUTION ONLY COVERS UP THE PROBLEM
Elavon basically put their CBD approval program on auto pilot…. onboarding too many businesses in a short time with incredibly outdated underwriting which allowed those same marketers who had struggled to find a merchant account in the past an open door to do business.
Only they don’t do business like you or I…
And many banks like Elavon, were itching at the chance to jump into this new marketplace opportunity.
Unfortunately, it seems like they brought on entirely too many new businesses at one time without updating their underwriting or risk management policies.
This essentially put CBD merchants on “auto approval.” Which, while it may look like a great selling point for the merchants’ CBD Shop UK, it backfired heavily.
The “auto-approved” accounts had hardly any oversight…which allowed for those less than reputable marketers to jump in and start selling using things like free trial offers with overly aggressive continuity.
These few businesses may have been the bad apple that spoiled the bunch as they caused a flood of chargebacks.
This poor risk management is what caused this blanket “solution.”
And unfortunately, legitimate business owners like yourself get caught in the crossfire.
But remember, this is a problem with poor underwriting (which can and will be fixed) and not with the product.
CBD is still in its infancy and sometimes it can feel like the wild west out there…. but remember, we’re here to make things easy for you.
As I said earlier, this is a knee jerk reaction and a small growing pain in an incredibly new industry…
But we also have 3 additional banks in the wings (ones with proper underwriting and risk management).
We’re just waiting for the ink to dry before we roll them out.
WHAT STEPS SHOULD YOU TAKE AFTER ELAVON ANNOUNCED THE END OF CBD MERCHANT ACCOUNTS?
The first step you should take… is nothing.
The worst thing you could do for your business right now is scramble to find another merchant account for your CBD business.
Remember, Elavon is no longer accepting NEW CBD business accounts, however, if you have an existing CBD account with them, you have AT LEAST a 45 day period before those accounts will be affected.
And frankly, we believe that Elavon will reverse their decision once they see Easy Pay Direct help our other banks update their risk management and underwriting.
Every application you file will result in multiple TMF/MATCH and personal credit inquiries.
Your best option right now is to submit all of your documents through our online application. That will put you at the top of the list as each new solution rolls out.
Easy Pay Direct has been in the CBD space from the beginning and we’ve helped hundreds of business owners survive and thrive through all the ups and downs
It is a volatile market and we are helping to stabilize the industry
Stick with it
Don’t worry
We got your back
Remember we’re here to make it easy for you
Have any questions about your account? Looking to set up your own CBD account?
Head over to the online application.
We’d be happy to help make sure you’re on the right track (with minimal risk)
