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Late last week, many online kratom vendors were shocked to discover that their websites could no longer accept credit card payments. The major credit card processor vendors had come to rely on, T1 Payments, had suddenly and unexpectedly severed all ties with kratom businesses. Established vendors like Kats Botanicals, Super Speciosa, and Amazing Botanicals soon notified customers of the outage via email.
Initially, T1 Payments was only withholding funds from kratom vendors. But eventually, it terminated their accounts outright. The Kratom Herald reports that due to clauses in T1’s processing contracts, those funds will never have to be returned.
Kratom business have been labelled “high-risk” by the financial services industry. As a result, payment processing options are limited. Credit card payment options, while available, regularly appear and disappear from vendor sites as owners struggle to maintain their availability. Meanwhile, major digital payment services like Stripe, PayPal, Venmo, and Cash App actively refuse to work with kratom vendors and kratom-related businesses.
As a result, T1 Payments had become the preferred credit card processor for kratom vendors. T1 also specializes in other “high-risk” industries, including cannabidiol (CBD), multi-level marketing, online gaming, adult entertainment, and more.
In T1 Payments’ absence, many kratom vendors will likely be scrambling to find alternative credit card processors that are willing to work within their industry. While other online payment methods like cryptocurrency are growing in popularity, credit card payments likely make up the bulk of transactions for vendors. And without a way to process them, vendors may face lower sales and profits.