How to Get a Kratom Merchant Account (Without the Headaches)

If you’ve tried to set up a merchant account for your kratom business, you’ve probably hit a few walls. Traditional banks and payment processors don’t want to touch kratom sales, labeling them as "high-risk" due to legal gray areas and regulatory concerns.

But here’s the good news: you CAN get a kratom merchant account—you just need to go through the right channels.

Why Is Kratom Considered High-Risk?

Before diving into solutions, let’s break down why so many payment processors reject kratom businesses:

✔️ Regulatory Uncertainty – Kratom exists in a legal gray area. While it’s federally legal in the U.S., certain states and cities have banned it. Processors fear future restrictions.

✔️ Chargeback Risks – Some customers might dispute transactions, especially if they misunderstand product effects or local regulations change.

✔️ Banking Restrictions – Major banks and traditional processors (like Stripe and PayPal) classify kratom under prohibited substances, even though it's legal in many places.

So, what’s the solution? Find a high-risk merchant provider that understands kratom.

Step 1: Work with a High-Risk Merchant Provider

Forget traditional processors like Square, Stripe, or PayPal. They’ll either reject you upfront or freeze your account later.

Instead, choose a provider that specializes in high-risk industries, particularly kratom sales.

Some key players include:

• Adaptive Payments – A trusted provider for high-risk merchants, including those in the kratom industry.
• Other specialized high-risk payment processors.

These companies work with banks that accept kratom businesses, giving you a legitimate way to process payments without fear of sudden account shutdowns.

Step 2: Get Your Business Documentation Ready

To improve your chances of approval, be prepared to submit:
✅ A valid business license
✅ Articles of incorporation (LLC, S-Corp, etc.)
✅ A detailed business plan (showing you’re compliant with regulations)
✅ A list of your kratom products
✅ A refund & chargeback policy (processors want to see clear terms)
✅ Processing history (if applicable)

Having these documents ready to go will make the application process smoother and faster.

Step 3: Implement Chargeback Prevention Strategies

Chargebacks can kill your merchant account. To keep your chargeback rate low:

✔️ Use Clear Product Descriptions – Customers should know exactly what they’re buying to avoid disputes.
✔️ Be Transparent About Effects & Restrictions – No misleading claims. Stick to legally compliant language.
✔️ Offer Clear Refund Policies – A fair, easy-to-understand refund policy reduces chargeback risks.
✔️ Use Chargeback Alerts – Some high-risk processors offer chargeback protection tools.

Step 4: Stay Compliant with Regulations

Kratom regulations change frequently. To keep your business running smoothly:

• Monitor local/state laws – Stay updated on where kratom is banned.
• Work with legal counsel – Ensure your business practices comply with current regulations.
• Follow FDA guidelines – Avoid making unverified health claims about kratom products.

Read more on the FDA site

Step 5: Diversify Your Payment Processing Options

Even with a reliable high-risk processor, it’s smart to have backup payment options:

💳 Multiple Merchant Accounts – If one account gets restricted, you have a backup.
📲 Crypto Payments – Some kratom businesses accept Bitcoin or other cryptocurrencies.
🏪 ACH & E-Checks – An alternative for customers who can’t pay with credit cards.

Final Thoughts

Getting a kratom merchant account isn’t easy, but it’s 100% doable with the right approach. Instead of fighting with traditional banks, work with high-risk merchant specialists who understand the kratom industry.

💡 Want a trusted provider? Check out Adaptive Payments.

They specialize in high-risk businesses, including kratom sales, and can help you get approved quickly while keeping your payment processing secure.

Now, go grow your kratom business—without worrying about getting shut down. 🚀