FDA’s Update on CBD: Important for Any CBD Merchant

Aug 26, 2019

The cannabis industry is growing more and more impressively with each year. Cannabidiol (CBD) is contained within the pot industry as a niche trend, which is gaining traction significantly faster than the overall marijuana industry. Are you a CBD merchant interested in growing your business successfully? This article will tell you about the FDA’s steps regarding the CBD regulatory structure.

Important for the CBD Merchant

As you may know, cannabis plants contain about 113 unique cannabinoids. They can be listed as hemp plants or marijuana plants. CBD is one of them. In fact, it’s the 2nd most predominant cannabinoid found in the plant.
As for THC, this is another story. THC is the cannabinoid that can get the user high. This is the very cannabinoid associated with negative qualities.

The Agricultural Act of 2014, which is also called the 2014 Farm Bill, served mainly as a pilot program for the hemp industry. It legalized basic cultivation activities, which allowed the hemp industry to reach today’s growth.

In December of 2018, the new 2018 Farm Act was passed. Based on the Act, hemp ceased to be listed as a Schedule 1 Controlled Substance from a Congressional standpoint.

When the Farm Bill was already a law, the U.S. Food and Drug Administration (FDA) stated that any hemp-based CBD product with positive medical impact or marked as a dietary supplement can’t be legally sold without the FDA’s review and approval.

CBD, still listed as a Schedule 1 Controlled Substance by the DEA, is regarded as similar to any other agricultural commodity from a federal standpoint. Thus, it can legally be grown and bought in the U.S.

Now, the FDA is making changes to its regulations concerning cannabis products, and the industry can’t remain unaffected as a result. So, you, as a CBD merchant, should take the time to find a reputable high risk merchant services provider like eMerchantBroker.com to work with. The rates are among the cheapest. The application process is the fastest.

EMB is an A+ credit card processor and a respectable alternative online lender in the high risk field. Moreover, EMB is ranked as an A company by Card Payment Options and is listed as the “Best All-Around High Risk Merchant Account Provider” by ValuePenguin. eMerchantBroker.com is voted the #1 high risk payment processing company in the U.S.

FDA’s Update on CBD

There’s been enormous pressure on the FDA to provide a legal pathway for CBD. The administration has recently organized a public hearing, the outcome of which highlighted the importance of health claims related to cannabis-based products as a primary concern.
According to the FDA’s Principal Deputy Commissioner Amy Aberneth, this is an important issue for the whole nation. It can’t remain without public health impact and is of great interest to American hemp farmers, as well as many other stakeholders.

Aberneth further notes that the FDA has a well-established pathway for drug development and drug approvals. The agency is dedicated to evaluating its regulatory policies concerning CBD products of other types. Also, it’s working on addressing many questions about CBD.

Currently, the FDA is actively working on permitting certain cannabis-driven compounds in food or dietary supplements. However, questions arise concerning moving forward with CBD products that don’t violate the quality standards required of mainstream products.

Some believe the agency is keen on approving certain quantities of CBD to be used in food, beverages, and dietary supplements while conducting long-term studies. Others think the FDA isn’t willing to give any concrete information.

To sum up, the FDA is concerned with some issues related to the marketing of CBD products. These have to do with unsubstantiated therapeutic claims that CBD products can help people get rid of some serious health issues, diagnose, relieve, treat, or cure some serious health problems. The FDA has announced it’ll report the agency’s progress in dealing with the questions on CBD.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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