Delta 8 THC Carts are NOT allowed on Shopify Payments gateway!

Thinking about selling Delta-8-THC Cartridges on your Shopify website using their Shopify Payments gateway? Think again!

Last week a Hemp brand reached out to us for help. Shopify cancelled their merchant accounts with little notice.

What happens when you don’t have backup options?

I’ve always promote having 2-3 merchant accounts as back up for these exact reasons.

Yes, Hemp is legal, but many of its individual Cannabinoids are restricted. Delta 8 THC is no exception. Recently outlets have posted that the DEA is on the verge of banning CBD-derived Delta-8-THC.

Payment processing companies are not going to jeapordize their “Revenue stream” for Hemp products until the industry is stable.

Per Square’s email on Delta 8 THC:

We have determined that you are currently selling a product or products, that we cannot support on the Shopify Payments gateway (CBD + THC vape cartridges). This is captured in our Shopify Payments Terms of Service, Section B.5 and in our CBD FAQ here.

Please note that your use of the Shopify platform is currently under review given the products that we have identified on your store. All Shopify merchants are responsible for complying with Shopify’s Terms of Service and Acceptable Use Policy. This includes complying with all applicable laws in your jurisdiction and your customers’ jurisdiction(s).

Specifically, your store is selling products considered to be regulated products.

Examples of unsupportable product(s) found on your store during our review are:

** Link of Delta 8 THC product removed **

You have until Sep 16, 2020, to review and submit the “Attestation for the Sale of Hemp and Hemp Derived Products” which you can access by clicking this link, otherwise, your account will be locked. Please note that you will need to be logged into the Admin for the above-mentioned store to access the above link.

While we understand this may be an inconvenience, you will need to select a new payment gateway to continue to process payments on your store, while your account is under review. There are many options to consider, though we recommend EMB, a payment gateway which integrates directly with Shopify and supports your product base (more information is available here). Alternatively you may wish to consider Authorize.net as a payment gateway option.

For a complete list of integrated payment gateway options, please have a look here.

While we cannot provide you with legal advice, we would be happy to answer any questions you may have about switching payment gateways or your Shopify Payments payout schedule. We’ll be your best point of contact for this, so we recommend replying back to this email directly.

Regards,
Marlowe
Risk Analyst | Shopify

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