Nicholasville CBD business says credit card merchant canceled services
The passage of the farm bill in 2018 removed hemp from the list of controlled substances. Businesses that deal exclusively in hemp products, however, say there are still issues they’re having to face.
At Kentucky CBD Farmacy in Nicholasville, it was business as usual until yesterday, when Elavon, their credit card processor, stopped handling transactions with CBD businesses.
Robert Matheny, who works at the business, says, “A lot of companies got a heads up on it. We was kind of hoping we were flying under the radar, no, they shut it down just like everybody.”
It's not the first hurdle hemp-based products have faced, but Matheny had hoped the passage of the latest farm bill would have done away with those issues.
“This really only affects the businesses that sell mainly hemp products. CBD products and such. Pharmacies that sell CBD, gas stations that sell CBD, all these other little stores that sell CBD can still take cards. They can still process. They can still grow as a business. CBD companies cannot right now.”
Representative Andy Barr, however, appears to be behind CBD companies. In Washington on Thursday, he made remarks on the hemp industry, saying, “It would be helpful to have a unified statement from all of the regulators clarifying that industrial hemp is different than marijuana. It is legal under federal law and state law and therefore these businesses should have access to financial services.”
The owners at Kentucky CBD Farmacy say they have been in talks with other merchants about taking over their credit card business, but it could be a couple of months, because of how many CBD businesses are in need of a vendor.