Kratom Merchant Accounts

This page is part of our high-risk industries we serve. It covers kratom retail stores, online kratom brands, wholesalers, and smoke shops and kava bars that carry kratom alongside other products.

Where kratom stands federally as of October 2026

The federal picture changed in 2026, and processors are reacting to it. Here is what is in effect and what is pending.

Practically, this means anything sold as MP, MGM-15 or MGM-16 is a Schedule I product today and cannot be processed. Concentrated 7-OH tablets, shots and extracts are on notice. Under the revised proposal, any product over 1 mg per gram (or 1 mg per mL) of 7-OH and MP combined, or with a mitragynine-to-7-OH ratio below 100 to 1, would be controlled. That makes COAs reporting mitragynine, 7-OH and MP essential for leaf and powder products too. Our post on 7-OH scheduling and what it means for merchants tracks the details.

State and local kratom bans

Federal status is only half of it. Kratom is banned statewide in Alabama, Indiana, Vermont and Wisconsin, and Connecticut added it to its controlled substance schedules in 2026. Some cities and counties ban it where the state does not, and a number of states regulate it through age limits, labeling and registration rules. Some states have also moved against 7-OH on their own: Colorado and Mississippi ban concentrated or synthetic 7-OH while natural leaf can still be sold.

For a store, the question is whether kratom is legal at your address. For an online seller, it is every address you ship to. Underwriters will ask how your checkout blocks orders to banned states and localities, and they will test it.

Who this page is for

What underwriters look for

• Business formation documents, owner IDs, and beneficial ownership for every owner at 25% or more
• Any state or local kratom registration or license that applies to you
• A full product list by SKU, with product type (leaf, powder, capsule, extract, beverage) and stated alkaloid content
• COAs from an independent lab showing mitragynine and 7-OH content, plus contaminant testing (heavy metals, microbials)
• Labels and website copy with no disease or treatment claims and no claims about opioid withdrawal or replacement
• Age gate and age policy for in-store and online sales
• For online sellers, the list of states and localities you block, and how your checkout enforces it
• Three to six months of bank statements and prior processing statements if you have them
• Refund, shipping and terms of service pages

Payment options for kratom merchants

Kratom merchants can use the same payment tools as other high-risk retail, once approved:

• Credit and debit card processing in store, with tap, chip and swipe terminals and mobile readers
• Ecommerce gateway integrations with Shopify, WooCommerce and other platforms
• Virtual terminal for phone and wholesale orders
• ACH and eCheck for wholesale accounts
• Recurring billing for subscription orders
• Chargeback and fraud tools, on PCI-compliant infrastructure

Next-day funding is available. See our payment processing page for the full lineup.

Risks specific to kratom processing

Scheduling changes mid-relationship

A product that was legal when you were approved can become a Schedule I product by temporary order. When that happens, you need to pull it from your catalog and tell your processor. Keep your product list current with us so a scheduling change does not turn into a compliance problem on your account.

Health claims

Claims that kratom treats pain, anxiety, or opioid withdrawal are the fastest way to fail a website review. Keep copy to product descriptions, sourcing and lab results.

Chargebacks and reserves

Subscription orders and online sales into many states increase chargeback exposure. Expect a rolling reserve on many kratom accounts, especially new ones. Our guide on chargeback thresholds for high-risk merchants explains how to keep your ratio under control.

Mixing kratom with other high-risk products

Stores that sell kratom alongside hemp THC, vapes or kava carry the risk of every category they stock. Disclose all of it. Each category is reviewed on its own terms.

How our process works

1. Apply. Send your business details, full product list and sales channels.
2. Underwriting review. We review your products against current federal and state law, your COAs, website and processing history. We tell you which products we can support.
3. Approval and setup. We set up terminals, gateway or virtual terminal with the right descriptor and state restrictions in place.
4. Go live. Start processing, with one point of contact for payments and funding. Tell us when your catalog changes.

We see high approval rates for legal businesses that disclose fully and keep their documentation current.

Funding and banking for kratom businesses

Kratom brands often need capital for inventory imports and lab testing. We offer lines of credit, merchant cash advance, invoice and AR financing, and B2B buy now pay later through our business funding options. For bank accounts, we connect merchants with partner banks through our business banking program. For other product lines, see all the high-risk industries we serve.

Kratom merchant account FAQ

Status as of October 12, 2026. Kratom scheduling and state law are changing. This page is general information and is not legal advice.