Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Payment Processing, Banking Issues Continue To Hinder Small CBD Brands
5:41 pm ET August 20, 2019 (Benzinga) Print
Many CBD companies continue to report issues with payment processing as well as maintaining a bank account.
The issue has also been discussed in the U.S. and other countries, like the U.K., where recent regulations may be adversely impacting businesses.
Tyler Beuerlein is a cannabis banking expert and serves as the chairman of the banking and financial services committee for the National Cannabis Industry Association
Banks are still sitting it out, he told Benzinga.
“Most financial institutions are risk averse by nature and are not yet willing to take on the regulatory compliance burden of banking this industry,” Beuerlein said, adding that "at least a few" U.S. banks are taking on hemp-based accounts.
Don’t miss out on the top cannabis stories of the day. Click here to sign up for our daily insider newsletter.
Account Closures
Braden Perry is a regulatory and government investigations attorney with Kennyhertz Perry, LLC. Local banks, state-chartered institutions and community credit unions are still more likely to work with the industry, he said.
"But it’s important to remember that it is still federally illegal, and the Bank Secrecy Act makes even the state-chartered banks subject to money laundering issues and can make banking a federally illegal substance difficult, if near-impossible."
Several CBD companies reported friction with banking institutions, both at the federal and smaller level.
Evan Nison is a cannabis entrepreneur and former lobbyist who has worked with prominent names like Whoopi Goldberg on launching ventures in the industry.
On July 22, 2019, Nison said that his New Jersey-based CBD smoke shop was informed that his account with Bank of America Corp (NYSE: BAC) would be closing in 21 days.
Nison said he was sent a letter stating the account's closure at a time when he was exploring how larger operators like CVS Health Corp (NYSE: CVS) are able to process CBD sales when he and other smaller brands have continued to run into issues.
The entrepreneur said he was told he would be able to speak with a bank exec, but instead received the letter notifying him of the account's impending closure.
Bank of America did not respond to a request for comment on this story.
Click here for more information about the upcoming Benzinga Cannabis Capital Conference Oct. 22-23 in Chicago.
'We Had To Scramble Again'
Luke Stead is the CFO of the CBD brand Simply Crafted. He said he had a similar experience with Minnesota's Firefly Credit Union.
Stead said he spoke to several bank representatives to ensure his CBD brand could open an account. He said he received approval from a senior banker, but did not receive any checks or cards in the following weeks.
When Stead followed up with Firefly, he said he was informed that Simply Crafted's account was opened in error and would be closed.
"After a month of waiting and thinking we had an account secured, we had to scramble again to find a bank that did not discriminate against CBD businesses."
Stead said he did eventually find another local bank that has only two locations.
Firefly Credit Union did not respond to an emailed request for comment on this story.
A Growing CBD Company's Experience
Payment processing is an issue for companies in the U.S. and abroad.
Keeon Yazdani is the CEO of Southern California's We R CBD. Yazdani said his company lost its account with processor Elavon on June 1, 2019. The CBD company was experiencing 30% growth and sales of $250,000 in May, the CEO said.
The company did not receive a response from Elavon, Yazdani said, but he has a theory as to why it was shut down.
"Elavon was associated with U.S. Bancorp (NYSE: USB), and people across the country flooded US Bank branches wanting to open CBD and cannabis merchant accounts," Yazdani said.
"We believe this may have raised some red flags, especially since many of these accounts were getting approved without any reviews or approval process."
Elavon declined to comment on this story.
New Rules In UK
In the U.K., some say the Payment Services Directive, or PSD2, fraud rules have harmed business.
Elliot Blackler is the founder of CBD brand Evopure.
After PSD2 became a regulatory requirement for European companies accepting digital card payments, he said he was unable to partner with a popular U.S. option, Authorize.net.
He received a response from Authorize stating it does not support 3-D Secure and a recommendation that Evopure try CyberSource as an option, Blackler said.
CyberSource's 10,000 monthly transaction threshold disqualified Evopure, Blackler said.
The company also considered merchant acquiring services but foundthe costs to be unfeasible. Evopure eventually found a processor, but it is not ideal, Blackler said.
"Being just one of the two main providers in the UK, the rates are still very high for a startup business," he said.
While there is no signup fee, Blackler said Evopure pays a 20p (24-cent) charge for transactions and declines. Other rates include a 1-pound refund fee, a 5% rolling reserve and 3-pound wire fee, among others.
With smaller operations still struggling to find payment processing and banking options, some like Nison wonder how CVS and others can continue to accept CBD sales.
NCIA’s Beuerlein offered up a possible answer.
These companies still face risks, he said. “However, in most cases these transactions make up a small portion of their total sales and are inconsequential. Smaller operators whose percentage of CDB sales are much smaller only have access to a few small acquirers within the U.S. willing to take on that type of risk.”
Nison considers this preferential treatment.
“If we sell 15 SKUs of CBD, and [large retailers] sell 15 SKUs of CBD but they have a box store, I don’t think that’s any different.”
Related Links:
SAFE Banking Act Advances To House Floor After Committee Vote
The SAFE Banking Act Would Be A Giant Leap For Legal Cannabis
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
50 million shares in 5 years! I think I read that also.
Silence is like ....
Technical Difficulties.... hmmmmmm can't get to my Ambassador page and still waiting on an order back in May. Figured I'd just wait since I've lost more on the stock than the order. Hoping for the best I love Cannazall and still have a little left for personal use. Hurry up already so I can get back to business with this product and make some stock money.
Got 1's a few months back and am NOT going to let them go. Rather turn blue crossing my fingers this will get traction again.
Anybody know why all the press releases on TD Ameritrade relating to Pura, Kaly and a few others have mysteriously vanished? Something is going on in the background but what?
To answer the question of where I put it to get the "extra" results. It started on my lower back while driving for my sciatic nerve. I noticed the "perks" and then decided it cannot hurt to place it in front.
Just loop it around! You can relax knowing the blood is flowing.. ;)
I said that it helped over a year ago with my prostate issues and frequent night time waking up to pee. Not an issue anymore and have not used a Viagra type pill since I have started using this either. Frisky like a 20 year old (even better). Even emailed the company with my results. Confirmation here folks it works.
Anybody else notice the Hemplife news related articles are no longer on the TD Ameritrade site? Noticed it yesterday... something is happening and I don't know if it's good or bad or if we UBQU holders just got left with a bag of shit.
Waiting a month for my order and so is a customer.. :( no communication since the last update from Mike. About to start selling Kannaway
Can you order from www.hemplife-cbd.com ? It comes up and redirects.
I had the same issue.. something is happening and I can only hope it is a changeover. As of this morning :( My ass hurts and its gonna take a large amount of CBD Oil profits to take that pain away.
I feel like the board is meditating it's so quiet. Hmmmmmmmm
Check out the FB page.. over 87k followers! Patients this is gaining recognition. They respond to your posts and currently are offering free samples to US customers only.
I just emailed them asking who the hell they are and what is up with the Hemplife link. Let ya know if I hear back
Who is this company?
WTF?
Global Links Corp OTC Pink - No Information: GLCO
GLCO
GoSymbol lookup
Real Estate : Real Estate Management & Development | Company profile
Global Links Corporation is engaged in the sale of hemp and medical marijuana products and services, through its HempLifeToday.com division. Its Domain Studio Concept is a practical design, which utilizes approximately 576 square feet. The Domain Studio features a full service kitchen, wrapping two walls, leaving the balance of space for a dining area and a desk area that can also be used as a bar or buffet for entertaining. The Domain Studio can be placed anywhere-on the ground, in a backyard as a guesthouse or rental unit, on top of a newly built two-car garage, on a mountain lot with a deck wrapped around it as a weekend getaway, or on top of other Domain Studio units, up to seven stories high, or in any number of other settings. Its Butterfly House/Casa Mariposa is a factory-built home that is composed on a central steel container.
To look at the products just go to www.hemplife-cbd.com
you can sign up to be an ambassador here if ya are looking to do that down the road.
https://hemplifetoday.com/distributors/cbd-distributors-195-2/
just follow the instructions.
LOL harsh rejection!!!
I had to ask the great philosopher Confucius what to do... I've been scratching my head over this.
His response was clear.
Man who scratches head is wiser than man who scratches butt, for he who scratches butt wake up with stinky finger!
You're right to scratch your head... !! But this stinks not knowing.
Happy Friday, may everyone make money somewhere!
Yes it went back to the endolab portal and is dead. Software updates? I was able to get into my account via log in but my "saved login" link is deactivated as of this morning. Worked great yesterday??? So I think something is brewing.
www.hemplife-cbd.com portal works fine!
Something is happening.. my login page said "I tried" but is gone. ?? Were is my account?
I was just watching some MM panic moves. They don't want it to run yet and someone seems to be begging for shares. Hmmmmm whats about to happen?
Up Up and away? Hell I don't know just let it run MM
School of hard knocks is the best education.. I have one of those too, with a lot of lumps.
The mom uses it for her head ache and wraps it with a scarf at night. She has been going to a doctor trying to find out what the cause it. So far this is the only thing that helps.
If the older generation baby boomers etc like this product and so far the ones who try it do, Monster is an understatement. This could be a multi-billion dollar company over night (years in the making).
I use it in various places as needed. Just gave the info to my PT and his staff is very very interested in it and researching.
CVS has it, if not ask your local one to carry it! I am using my PT to push CVS down here in the Galveston area to stock them.
Grass roots marketing.
People want the Actipatch (they don't even know it yet).
Most people don't know about much them or the PEMF technology yet so...
?? no sense.
My mom bought some 2 days ago.. 2 of them in Houston. (only 4 in the whole city when I searched online) They are selling but the CVS staff are clueless and it was on the wrong display area according to her.
I picked up 8's yesterday and might buy what I can today. Tried for 7's and gave up.
When mom loves something I buy!
JGD thanks!
My 84 year old mom ran out of the ones I gave her and the ones she ordered. She lives in Houston and there is one near her house. She uses them for her head aches on the back of her neck.
She loves to work as an artist and have shows...The Actipatch is a favorite of hers because it works with no harmful side effects.
Best have a fat wallet if you think you can purchase her work ;) LOL
Great quality CBD delivered right to your door...!
www.hemplife-cbd.com use code CBDLOVE20 for a 20% discount today!
And another random sale off the Ambassador website. Slowly its growing. We need the name change!
I keep posting that on Yahoo and some "yahoo" keeps deleting it. Oh well can't blame a Ghost for trying to sneak in a free add!
Here is the code to use GELCAPSLOVE25 www.hemplife-cbd.com
Thanks for that link!!! I joined :)
No Clue but I am getting a few online sales from people I don't know!
I wish it was $8.00 on the bid~ retire in style!
www.hemplife-cbd.com the Ambassador online sales program is working!!
Johny I'm in month 4 of my PT and if yours goes as well as mine.. you will start feeling better, about halfway thru is when I started feeling younger.
Yep younger! You need to do your part, i.e... yoga, Pilates, walking or whatever your body allows. Things I could not do a year ago I am doing again and loving it. I keep one loop in my truck for long drives and place it on my lower back, helps a lot.
From what I have been studying there is a chance that the combo of all of these natural products and the PEMF our bodies will heal. I was able to move boxes without back pain 2 days in a row!!!!!! Not even a Tylenol (hate them). 6 months ago Dr was talking 3 pins in my spine. Yeah HELL NO, not even on the agenda now. Dr asked me to do a video testimonial 3 weeks ago. Get ya some of that!!! I still have 2 months left to go. Eating right is part of the deal... part of my past is healthy restaurants in Houston. The right food is a must!
The more I learn natural healing the more my body feels better. I do share Biel with my doctors. They seem to be very curious and some love the idea.
We as investors should continue to do our part and talk about it. My mom ran out but loved it. She is waiting for CVS in Houston to get on the ball. The older folks want it.
Oh and thanks for that tip.. good luck to you!!!
Went to my portal today and there are new links! Cannazall for pets is active.
Check it out. www.cannazallpetsmeds.com
Miamifl try Turmeric Curcumin for anti-inflammation and if you have not tried CBD .. it works. I use both of those with the Actipatch and have not taken anything more than my baby aspirin since December.
I do PT 3 days a week and my Dr is now a Bieliver in all 3 products! Stage 3 spinal degeneration and bone on bone. I feel younger at 55. Still a long way to go but hey I have to do my part and yoga.
What I read into it was that the orders for Pura's products are huge and they need to expand the Pura line. The others on separate bottle runs. sounds like Alkame is maxed on Pura, doing fine with the others and Pura needs to expand the equipment line for EverX. Not a bad problem to have to solve and for those who know nothing about business.. it won't happen in a day.
This is a solid company and as one who currently owns interest in a food production company with products in Costco, Sams, Target, Kroger, HEB, Randalls, etc. It started selling in Smoothie Kings and 10 years later we are in over 1500 stores nation wide. When we expanded it took over 45 mill for the new facility and equipment. The frozen food section got launched in January. Still waiting on my dividends!!!
That said, there will be a few retired folks here eventually (hopefully by ALKM). If not, guess it's back to work and that just ain't gonna happen.
I own Pura, Kaly, GNBT in this synergistic circle of a love triangle. Somebody is gonna end up owning all 4 of these companies, the question is who's name will be on the ticker?
Beats the hell out of me..?
I did just now get an email from my Hemplife Ambassador rep with an educational video and appreciation of my patience.!
They are working on it, now what the "F" can be done about the stock price.
About to check out the video.
Thanks! I think I can.. I think I can.. Sounds like a great idea.
I am always looking for something that moves and to make money. Thanks Tiger!