Important Information Regarding Cannabis and CBD-Related Products and Services
Cannabis and CBD products and services are growing in popularity across the beauty and wellness industry. Given the complex regulatory status around the selling of cannabis and CBD products and services, we want to help you avoid any potential issues. Below you'll find information on how text message carriers and payment processing providers view cannabis and CBD products and services.
It is also essential to know your responsibilities regarding federal, state, and local laws on selling cannabis and CBD products and services and the policies of any third-party providers you may use. If you have questions, it is recommended you reach out to third-party providers directly or consult with your attorney.
Text Messaging
By including keywords such as cannabis, hemp, and CBD in text communications to your clients, carriers can flag your SMS and MMS messages and possibly suspend your account. You must avoid using these terms in any text messaging communications you send to your clients. These include:
- Appointment confirmations and reminders
- Mass text marketing campaigns
- Self-Pay messages
- Meevo Messenger communications
To help prevent any issues with your carriers, do not use cannabis, hemp, or CBD in product or service names, especially if you include these names in your text messages appointment notifications. Note Meevo will automatically remove the phrase "CBD" from text message notifications, but we do not recommend relying on this as a fail-safe. Ultimately, it is up to you to adhere to these policies.
If your account gets flagged or suspended, you'll need to update any violations to regain compliance with your carrier's policies and apply for your account to be reinstated.
Payment Processing
Many payment providers, including Worldpay and Card Connect, deem selling cannabis-related products and services, including CBD, to be high-risk. Transactions involving cannabis and CBD products and services are vetted more carefully by payment providers and banks, resulting in a longer than usual approval process.
This means they may choose not to work with a business that actively sells products and services that include cannabis or CBD in their names or descriptions. It can also lead to higher rates based on this increased risk. These providers consider many factors when deciding to adjust rates or approve payments, including product types, years of operation, transaction history, sales volume, product variations, and others.
Additionally, some payment providers, including Worldpay, will review your website for cannabis and CBD keywords during their vetting process before enabling or re-enabling your account.
To avoid potential disruptions, you must remove cannabis-related keywords from service and product names and descriptions, including on your website. If your account gets flagged or suspended, you'll need to update any violations to regain compliance with your payment provider's policies and apply for your account to be reinstated.