The world of smoke shop products is rapidly changing, with new and exciting items hitting the shelves nearly every day.
One product that has recently exploded in popularity is kratom, an herb originating from evergreen trees in Southeast Asia. This supplement has become a favorite of tobacco and vape shop customers, who purchase it to chew, smoke, drink as a tea, or consume as a capsule.
Adding this herbal supplement to your smoke shop’s offerings can be an excellent opportunity to attract new customers and boost your sales — but there are a few key things to know before you stock up.
In this blog, we’ll explore the world of kratom payment processing and share our best tips for becoming your neighborhood’s go-to shop for kratom.
The Legal Status of Kratom
Before we dive into how to start selling kratom, let’s first cover some must-know legal limitations.
Even though kratom is currently legal at the federal level, it has always been a tightly regulated substance, with the laws regarding its sale and use shifting often.
Six states have also banned kratom, including Alabama, Arkansas, Indiana, Rhode Island, Vermont, and Wisconsin — and officials in several other states are working on legislation to regulate it.
If you plan to start offering kratom in your smoke shop, it’s crucial to understand and stay up to date on the federal, state, and local regulations that govern this product.
Why You Need Specialty Kratom Payment Processing
Given the complex legal landscape surrounding kratom, you might be categorized by payment processing providers as a high-risk merchant.
High-risk payment processing is a specialty solution for retailers who are prone to financial complications like chargebacks and fraud, or businesses operating in industries that are subject to regulatory scrutiny.
Smoke shops carrying kratom, cannabidiol (CBD), and delta-8 often fall into the second category since these products are relatively new to the market and pending regulation.
Starting your kratom payment processing journey can seem daunting, but in the next sections, we’ll share everything you need to know to start selling kratom hassle-free.
1. The Benefits of Kratom Payment Processing
Being labeled as a high-risk merchant can sound like a negative, but kratom payment processing can be a huge advantage for your smoke shop.
Most importantly, kratom payment processing enables you to expand your smoke shop’s product offerings. As a high-risk merchant, you can be the first business in your neighborhood to sell new and popular products like kratom, CBD, and delta-8, bringing new customers through your door and giving your sales a boost.
Partnering with a kratom payment processing provider also gives you access to their industry expertise. These providers’ top priorities are security and compliance, and they’ll be able to help you protect your business from fraud and navigate the legal complexities of selling kratom and other highly regulated products.
2. What Makes Kratom Payment Processing Different
It’s also important to cover the practical differences between standard payment processing and high-risk kratom payment processing.
The first distinction you’ll notice is that the process of securing a kratom payment processing provider is more extensive. These providers often require you to fill out an in-depth application and provide the relevant paperwork and records.
Another key factor to keep in mind is the payment processing fee rate. With high-risk kratom payment processing, the fee that your business pays for each transaction will typically be higher. However, these higher fees are often offset by the increased revenue you’ll receive from selling high-value, high-risk products.
In addition to higher processing fees, high-risk merchants are often required to pay higher chargeback fees and maintain a cash reserve with the payment processing provider.
3. Why You Need a POS With Integrated Kratom Payment Processing
If you’re ready to become a high-risk merchant and start selling kratom in your smoke shop, your best bet is to secure kratom payment processing through your point of sale (POS) provider.
Integrated payment processing is more secure, provides a seamless experience, and often allows you to get the best rate on your payment processing fees.
We also recommend that you choose a POS system with integrated high-risk payment processing that’s specifically tailored to the tobacco and vape industry. With an industry-specific solution, you’ll have all the tools you need to run a compliant, efficient, and profitable smoke shop.
Start Selling Kratom Hassle-Free With Cigars POS
Kratom payment processing can be a game-changer for your smoke shop, allowing you to carry new and exciting products while keeping your business secure.
If you’re ready to get started with the best POS system with integrated kratom payment processing, then you’re in the right place! Cigars POS is a POS solution designed for smoke shops just like yours.
Along with integrated kratom payment processing, Cigars POS includes robust inventory management features like carton-pack inventory tracking, built-in age verification, a customizable customer loyalty program, and more.
Schedule a personalized demo today to learn if Cigars POS is the right fit for your kratom payment processing needs.
