NASHVILLE, Tenn. (WKRN) – More people are turning to CBD oil for their aches and pains, but they may run into trouble paying for it.
LabCanna East in East Nashville said it’s become increasingly difficult to process their credit card payments, in-store and online.
“It’s making it more difficult because a lot of customers pay with credit cards and or debit cards and they’re having to come in and pay with cash,” said Katy Buford, LabCanna East General Manager.
In early April the store’s manufacturer, LabCanna, received notice from the merchant processor, Elavon, that it would no longer process transactions from CBD or hemp businesses.
LabCanna founder and CEO, Johsua Camp, said finding a bank has been difficult too, even though their product is legal,
“Outside of the federal guidelines, there’s nothing that we really can do to force banks to work with us. Right now, there is legislation on the table but it’s focused around cannibis, again, which still lumps that plant into a category of high risk.”
The companies that will work with CBD businesses are charging more. Camp said while LabCanna has been able to absorb those additional costs, other companies cannot,
“It’s passed on to the consumer in the way of a markup.”
Camp added that while they’ve found a solution, their business model is impacted,
“Our products we routinely give away, we routinely give discounts. We have to cut back on some of that just to maintain the margins we need to operate.”