Republican Congressman Makes An Argument For Credit Access For CBD Companies
CBD Businesses Struggle To Gain Access To Credit Card Payments
Although CBD is the fasting growing industry in the US, sellers are still struggling with payment options. It’s known as a ‘cash and carry’ business, and that just frustrates the owners of CBD and their customers. Now Republican Congressman Andy Barr of Kentucky is trying to find solutions for the CBD suppliers. Barr recently appeared before a ‘House Financial Service’ committee to discuss the plight of businesses in the industry. Barr said, “Just yesterday more industrial hemp businesses in Kentucky lost more access to card services, when their card service providers stopped excepting payments.” He went on to explain, ‘that since the state has approved industrial hemp and CBD based products, access to credit card payments has deteriorated.’
Kentucky Congressman Wants Answers Regarding Access To Financial Institutions
Barr said that per the 2018 Farm Bill ‘these merchants have been deemed as legitimate legal businesses.
Without access to credit card payments and financial institutions they can’t operate as such.’ Barr also discussed several ‘pilot programs’ that were activated through the government, and those programs were also denied access. Barr sternly asked, ‘What is the FDIC doing to provide guidance and clarity to banks about these businesses that operating legally?’ Barr said these problems exist all over the country, and it’s an ongoing burden for this merchants. Jelena McWilliams, the chairwoman of the Federal Deposit Insurance Corporation, tried to address Barr’s questions.
House Financial Committee Says Educating Banks About Legitimate CBD Companies Is Ongoing
McWilliams said, ‘there is a lot of uncertainty in this phase, due to the difference between marijuana and hemp.’ She said there is still so much confusion about these issues throughout the states. McWilliams said that currently they are conducting training and education workshops to make sure their inspectors know the laws. There is a sub-committee in place to educate all banks and other financial institutions on how they deal with these issues. Barr added, ‘he wants a universal statement from all banks stating the following. That CBD and Hemp is different from marijuana and these products are produced for medicinal purposes.’
Big Drug Store Chains Jumping on the CBD gravy train wagon
Barr says progress is being made since big drug stores like Walgreens and CVS are now selling CBD based products
Walgreens was the first major store to start selling CBD products like lotions, skin care products, and ointments. Although the products are only being tested at select stores around the country now. The rise of CBD products, has created a national buzz, this is intensifying. Larry J. Merlo the CEO of CVS drug stores says ‘CBD products are something his customers actively look for on the shelf. He wants to provide these products to his customer base. Sales reached over 390 million dollars in the US, it’s predicted the sales will be in access of 22 Billion in 2022. Due to the tight government restrictions on the products, there isn’t enough scientific evidence regarding effectiveness.