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signaled back in 2017 that it would likely strike down hemp-derived CBD products, which are expected to grow
the laws when it sent the case challenging New York's from $390 million in sales in 2018 to $1.3 billion by 2022.
anti-surcharging law back to a federal appeals court to
reconsider with an eye toward First Amendment rights. The relationship between CBD and marijuana, and federal
prohibitions on hemp and marijuana, have kept most
Farm bill opens new vertical to card payments merchant acquirers and ISOs from boarding businesses

Legislation signed into law in the waning days of 2018 that sell CBD products. Some ISOs have been selling
removed hemp from the federal list of drugs deemed workarounds that avoid credit card networks, including
illegal under the Controlled Substances Act of 1970, decoupled debit programs, which leverage the ACH
reclassifying it as an agricultural crop, just like wheat and network, and cashless ATM systems (also known as POS
soybeans. Now companies selling products derived from banking systems), which ride the ATM network rails.
hemp – like cannabidiol (or CBD for short) – would seem
fair game for merchant acquirers and their sales partners. Last year at least one leading acquirer, Elavon, informed
sales partners it would begin accepting applications for
Hemp is a variety of the cannabis plant that is low in businesses selling hemp and CDB oils. Other acquirers
THC, unlike marijuana, which contains more of the and ISOs may soon follow.
psychoactive substance. Hemp is used primarily in
industrial applications, but also contains CBD, a non- Loosening federal strictures around hemp, ongoing state
psychoactive compound also found in marijuana that has initiatives legalizing medicinal and recreational uses of
been shown to have significant healing benefits. marijuana (now 32 states and the District of Columbia),
and burgeoning sales of CBD products add up to ample
The market for CBD products – which include tinctures, opportunities for expanding card acceptance in this
lotions, mists, infused drinks and candies – is huge and emerging market.
growing. New Frontier Data, a Washington, D.C.-based
research firm, expects the U.S. hemp industry to grow Patti Murphy is senior editor at The Green Sheet and president of
by more than 18 percent over the next five years, led by ProScribes Inc. Follow her on Twitter @GS_PayMaven.

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