CBD Merchant Processing may get a boost in the arm today, as the FDA is scheduled to hear testimony from over 100 CBD industry leaders today. The exploratory hearing is to determine safety for public CBD consumption and examine heath claims floating through the media hype. This is the first step to approve CDB as an additive to food, beverages, and CBD as a supplement for US Consumers. We don’t expect a decision today, but this is a positive step towards legitimization.
Back in December 2018, the congress passed a Farm Bill that included legalization of Hemp as legitimate plant to be grown in the United States. The industry is booming and has the potential to become a $22 billion business by 2022, according to cannabis-focused research firm Brightfield Group.
Merchants selling CBD, ran into a brick wall in April 2019, when CBD Merchant Accounts were shut down by Elevon and US Bank for processing credit card payments for CBD products. Merchants were given 45 day notice, but options are few and far between at the moment.
The good news is, the political winds are moving in the right direction. The reality is, the FDA Hearing today is a fact-finding mission and the agency has a reputation of moving at a snails pace when making final decisions on approvals. We don’t expect any news today, other than the agency will take today’s testimony into consideration.
Author: Chris Fernandez
Small business authority and entrepreneurial journalist.
Contributing writer at HRMA-LLC