Interest in kratom is increasing nowadays as more individuals explore its potential benefits, such as energy stimulation, mental alertness, focus enhancement, and relaxation. This rising demand has fueled growth in the kratom industry, allowing producers, cultivators, and distributors to expand.
As an industry classified as higher risk, establishing a kratom-centered business presents unique challenges and obstacles that should be addressed, including securing payment processing. That’s where this guide comes in. We’ll walk you through everything you need to know about starting your kratom business, from setting up your operations to finding a merchant account that will work with you even as a high-risk company. By the end, you’ll be armed with all the information you need to overcome those challenges and get your new venture off the ground.
Kratom (Mitragyna speciosa) is a tropical evergreen tree native to Southeast Asia, predominantly found in Indonesia, Vietnam, and Thailand. In recent years, kratom has grown in popularity within Western cultures, given its reported health benefits, including the potential for elevated mood, increased energy levels, better relaxation, and overall well-being
While kratom might potentially provide various therapeutic effects, the industry faces regulatory obstacles owing to an absence of formalized safety standards and oversight mechanisms. Without established guidelines, product quality and potency can vary inconsistently across manufacturers. Furthermore, the lack of regulation has prompted some financial institutions to classify kratom businesses as high-risk.
As a consequence, numerous payment processors and banks are reluctant to facilitate transactions, sometimes compelling vendors towards alternative provider options or off-shore account solutions to enable financial operations.
Although we’d prefer for kratom companies to be viewed as low-risk merchants, the reality is that they are often categorized as high-risk businesses. Nevertheless, our team consists of experienced professionals in the processing industry adept at minimizing risks associated with kratom businesses. We focus on reducing risk factors before we submit your account for underwiring. Our goal is to ensure the success of your business, setting us apart as a unique credit card processing company.
Starting your kratom company presents both opportunities and challenges. The first step is ensuring you source high-quality products. Reach out to some established vendors to see if they have any distribution deals available. Remember that strict adherence to industry standards and regulations must be maintained for customer safety and to meet their expectations. Therefore, lab-tested kratom of the highest caliber should be utilized alongside rigorous quality management strategies. Likewise, innovative packaging and branding can set you apart from the competition.
Alternatively, you can reach out to vendors overseas, but there are a number of challenges with importing. So, starting, it is recommended that beginners look for domestic wholesale kratom vendors that have 3rd party lab-tested and quality products. The downside with buying domestic wholesale is you’ll pay higher prices, but the upside is most of these vendors bring these products in bulk and will have strong shipping discounts from importing so much that you will have cost savings.
In today’s digital world, a company’s online presence serves as its primary storefront. By developing a compelling online presence through optimized channels, you can effectively communicate your unique value propositions on a broad scale.Having a user-friendly website, using major social media, sending emails, optimizing for search engines, and partnering with influencers allow you to share the benefits of your products and customer reviews with a wide audience. Tracking website traffic and engagement also helps see how their digital efforts are doing over time. Keep in mind that you likely won’t be able to run ads on platforms like Google and Facebook due to the same regulatory challenges discussed earlier.
Pricing plays a huge role in a business’s success. Customers are always looking for the best deals, so you need to keep your prices competitive to build a good reputation. Make sure your prices seem fair compared to other companies, and offering flexible payment options is also key – let customers pay however works best for them. Have options like credit cards, paying cash at delivery, or breaking it into smaller payments if needed. The more ways people can pay, the better chance you have of making a sale.
The best way to find your price point is to look at what other successful online vendors are selling, average them out, and then see where you want to fall along that spectrum.
While the kratom business is taking off, starting your business does come with some extra challenges. Specifically, you’ll need a special kind of payment setup since kratom is still seen as risky by most banks. It’s crucial to get up to speed on how “high-risk” merchant accounts work and ensure you can accept customer payments.
Choosing a reputable payment processor can help you with tricky industries and provide payment options that work for your business and customers. Shark Processing is a company known for seamlessly handling kratom accounts. We offer specialized services, including fraud protection and dispute management, which are very important for working in riskier areas.
When applying for a kratom merchant account, you’ll need to provide some paperwork showing your business is up and running. You’ll need things like your business license, financial records like tax returns or bank statements, tax IDs, and a little plan about what your business is about. It also can’t hurt to have a good credit score and a history of paying your bills on time.
Just a heads up that with a high-risk merchant account, there are usually some fees involved. You’ll pay higher fees per transaction due to the higher-risk market and there is no legal way around this, a percentage that gets held in reserve each month on a 180 day rolling reserve schedule, fees if a customer disputes a charge, and possibly a monthly fee for statements. If you know upfront how those fees work, it will help you keep better track of your money. You surely don’t want any surprises.
The regulations surrounding kratom have been tricky to follow lately, so it’s very important to stay on top of what’s allowed by local and federal laws so you don’t get in any trouble. Also, make sure your payment processing is dotting all the i’s and crossing all the t’s when it comes to industry rules. Of course, protecting customer info should always be a top priority.
We understand that smoothly accepting payments is key for any Kratom business. We’ve been in the game for many years, so we understand how things work in your industry. Over that time, we’ve helped tons of companies like yours get the payment processing they need to thrive.
We’ve built a solid and secure system for processing transactions. Our platform ensures payments flow smoothly and stay protected. Dealing with risky accounts isn’t easy, but our technology gets the job done efficiently and securely.
On top of that, our company cares about customer service and security. We use some serious security measures to protect against fraud and data breaches. This allows vendors and customers to feel confident when doing business. Plus, our support team is top-notch. If any issues come up or you have a question, our reps are responsive and knowledgeable to help resolve things.
We’re confident we can help your business grow while also lowering those pesky chargebacks. Let’s chat about how we can help scale up your operations, or you can simply apply for a kratom merchant account with us here.
