So, you’re looking to sell Kratom online, right? But, now you’re wondering what the best way is to set up your payment options, yes?
The online payment methods you use in selling kratom are going to be essential to ensuring you maximize sales and avoid legal and financial fallout.
The kratom industry is not like most other industries. It’s just not the same as selling t-shirts or posters online. It comes with its own upside of greater potential profits, but it also means more precautions need to be taken.
To help you out, we have put together a guide for types of payment methods that are best when selling kratom online.
Why Are Payment Methods Important?
There are a few different reasons why payment methods are going to affect your kratom sales. Let’s have a look at them one by one before you start buying your bulk kratom.
Current and Future Legality
Kratom is currently legal in most states in the US. However, some states have already banned it, while the FDA is looking into regulation options.
So, even though it may be completely legitimate for you to offer kratom for sale in your state, you need to be aware of the legal considerations of customers who may be buying it in states where it is not.
What this means in practice is that customers may not wish to have kratom purchases on their credit card records. Having these purchases on their account statements may not only cause them legal issues but may also cause them embarrassment when they need to show their account statements to other parties (for example, a tenancy or job application).
For this reason, you may want to consider offering customers multiple payment options to avoid this. Doing this will make your customers feel more comfortable buying from you, and it will also give you greater legal protection as well.
‘High Risk’ Enterprise
While selling kratom may not actually be a high-risk activity, the term ‘high risk’ has its own particular meaning in the world of payment processing. Payment processors like PayPal and Stripe, for example, often exclude some businesses from being able to use their services because they are ‘high risk’.
What this basically means is that they do not want to facilitate the sale of goods or services that are heavily regulated or which may become illegal in the future. The kinds of goods and services that are typically excluded include drugs, alcohol, cigarettes, gambling, and adult entertainment.
The main reason you need to be aware of this is that payment processors will often not exclude you at the time that you set up your payment gateway with them (even though they state the exclusion in their terms of service). Big Companies like PayPal and Stripe will let you sell a few thousand dollars worth of products before they then check that your business operates within their guidelines.
At this point, they may simply freeze your payments or cancel your account. This will not only mean that you can’t access the money you have earned. It will also mean that your customers suddenly can’t buy from you anymore.
This may significantly hurt your brand image and customer satisfaction.
To avoid this, you need to make sure that you are using a payment platform that has given you explicit approval to sell using their gateway.
Another big reason you need to keep your payments secure is that you want to avoid chargebacks. A chargeback is where a customer who has bought something from you contacts their bank and asks them to refund the payment.
To do this, the customer’s bank will contact your payment processor. Your payment processor has legal obligations to make the chargeback in some circumstances.
The upshot of this is that your payment processor may not only take the money back from you but also charge you a fee for each chargeback you incur. This can become very expensive and destroy your business.
One way to avoid this is to set up your payment process overseas. This will mean your payment processor will not have to process the chargeback by law.
However, you should be very careful about doing this. After all, if your customer is asking for a chargeback, it is because they are unhappy with you. So, you should be trying to avoid chargebacks altogether.
Even so, you need to keep the possibility of chargebacks in mind when looking at payment methods.
What Are the Best Payment Methods for Kratom Sales?
If you are selling kratom capsules or any other kind of kratom product, you need to be aware of the kratom laws in your jurisdiction, and also the jurisdictions of your customers.
Once you have got this information, you can begin to talk to payment processors to work out the best system for you. When you do this, don’t just go to the big-name processors like PayPal. Make sure you shop around.
You will find that there are a number of payment processors that are specifically set up to facilitate ‘high risk’ businesses. By talking to these processors before you begin, you will avoid the problems of having your account frozen or canceled later on.
Also, you will find that payment processors have specific procedures in place to protect your customers’ interests (i.e. embarrassing credit card statements).
Lastly, they will be able to help give you further protection from chargebacks, giving you greater financial and legal security.
Payment Methods Are at the Center of Your Business
You may think that payment methods are one of your very last concerns when selling kratom. But, the truth is that they should be one of your very greatest concerns.
Payment methods are not only important in ensuring you operate legally, but they are also essential to your customers’ experience. Using the right payment processing methods, you will increase sales and give your business excellent financial and legal protection.
So, what are you waiting for? Get set up, buy your kratom stock, and get selling today!