April 1st brought upsetting news to the CBD market that was no April Fool’s joke. Elavon announced, effective immediately, they would no longer be accepting applications for CBD processing.
Additionally, they stated they will be officially closing all current CBD merchant accounts on May 15th. Any company with CBD products was sent a letter notifying them they had 45 days to find new credit card processing options.
Why are Elavon Merchant Services Ending?
Elavon teamed up with US Bank to be one of the largest CBD merchant processing companies on the market. So why end all the business? US Bank reported being flooded with CBD companies hiding that they were also selling THC. The bank also had an influx of these companies wanting to set up banking accounts directly, which is against US Bank policies.
Elavon additionally claimed that the quick decision was due to the large amount of fraud and chargebacks in the CBD industry. This lead to them placing all CBD and even hemp products on their prohibited products list.
Online message boards are being flooded with CBD companies pleading for help. And with good cause, having spent thousands on top of thousands of dollars on marketing and manufacturing now with now way to accept credit card payments.
What to do Without Elavon Credit Card Processing?
Those in the industry know the major difficulties in CBD merchant processing approval. For many, Elavon's news was devastating and stressful. But it doesn’t have to be!
Our friends at CannAccept offer merchant processing, banking, and lending solutions for those in the CBD space.
CannAccept is already helping CBD companies get ahead of the May 15th Elavon account closing deadline. So take some CBD and head over to CannAccept for more information on new merchant processing solutions.
See... aren’t you feeling calmer already?