CBD has spiked many controversies, especially after the federal government legalized hemp derived cannabidiol with a maximum concentration of 0.3% THC. CBD is not a psychoactive component, and it doesn’t give any high like marijuana or THC compound which is responsible for producing hallucinations when people smoke weed or pot.
CBD is believed to have anti-inflammatory properties that can treat pain, inflammation, swelling, irritation and even severe ailments like cancer, Alzheimer’s and epilepsy. It is widely popular for its soothing capabilities in stress, depression, insomnia, panic attacks and epileptic seizures. Many people have turned to CBD for their health problems, and treat it as an alternative for over-the-counter prescription medicines.
Studies have noticed a significant reduction in the sales of opioid and prescription drugs after the legalization of CBD. As CBD sales boost, more issues concerning payments and compliance are raising in the cannabis industry. CBD is now being incorporated in a gamut of products including topicals, creams, ointments, oils, facemasks, massage oils and even edibles such as popcorn, beer, mocktails, burgers, gummy bears, chocolates, etc.
For this issue of compliance, LegitScript comes into the rescue that verifies and monitors online pharmacies. They have launched a program that certifies websites selling CBD products that are legally compliant. As of today, FDA, USDA, and DEA approved U.S. manufacturers and traders can apply for certification via LegitScript. Currently, the site provides a 10-page introduction which explains marijuana laws and regulations in the U.S. comprehensively. It aims to help people understand the state’s restrictions and payment processes involving medical marijuana.
LegitScript certifications give authentication to retailers and merchants that deal with CBD and its products. Consumers and banks can be assured that CBD merchants who are certified from LegitScript are compliant with state-specific laws, as well as regulations provided by various U.S. agencies.
Even though CBD or its products have been made legal in the U.S., some products that contain THC are still considered illegal by many state laws. In addition to this, even the FDA is yet to set a regulatory framework surrounding CBD products which puts consumers and retailers in a grey space. Some states allow CBD with a maximum THC concentration of 0.3 percent complying with the Farm bill 2018, while others consider products with any amount of THC as illegal.
CBD Payments Are Easier Now
Despite the difficulties in CBD industry with respect to regulations, major brands such as Target and Walmart have been reported to be having discussions with CBD manufacturers. Many enterprises are also seeking for lab and research results on top of CBD samples to create CBD infused products that captures the consumer market.
CBD industry is booming right now, encapsulating a wide array of consumer based products, ranging right from skin care to health to diet supplements. Thus, digital payment companies like Square have entered into the CBD space by offering access to basic financial services. Initially it was Elavon which had stepped into the cannabis industry but recently backed out from it.
A year after the legalization of cannabinoid in the U.S., Square has took the initiative to render easier methods for financial services that makes transactions within the CBD industry a hassle free process.
CBD – A rapidly growing industry
It has been found that over 7 percent of Americans are using CBD based products as of February 2019. Cowen & Co. surveyed 2,500 adults and discovered that the CBD market would be worth over $16 billion by 2025. Also, a study by Vivien Azer, an analyst, concluded that there are over 2.7 percent more people who use CBD products than e-cigarettes.
Owing to the rapid growth of CBD industry and the sprawling products in the consumer market, it is important to have reliable and safe payment options, especially for online transactions. In-depth research and studies are being conducted in the CBD industry for exploring its effects and deduce how its healing capabilities actually work. With more research backing up CBD’s health claims, it is safe to say that more products will be rolled in the coming months. There will come a time when certification programs will be mandatory to have in order to be able to sell legal CBD products to consumers.