Cannabidiol (CBD), hemp, and marijuana are terms often used interchangeably. However, they represent different aspects of the cannabis plant with distinct legal statuses and uses. To understand the differences, it’s essential to delve into their origins, chemical compositions, and the legal frameworks that govern their sale.
Origins and Composition
Hemp Credit Card Processing Services
Both CBD and marijuana come from the Cannabis sativa plant, but they are derived from different varieties and contain varying levels of cannabinoids. Cannabinoids are chemical compounds that interact with the endocannabinoid system in the human body, influencing various physiological processes.
Marijuana refers to cannabis strains high in delta-9-tetrahydrocannabinol (THC), the psychoactive compound responsible for the “high.” These strains usually contain 15-30% THC, making them popular for both recreational and medicinal purposes. THC interacts with cannabinoid receptors in the brain, leading to changes in perception, mood, and consciousness.”
CBD, on the other hand, is a non-psychoactive cannabinoid found in both marijuana and hemp. Hemp is a variety of Cannabis sativa with low THC content (0.3% or less), making it the primary source of CBD products. CBD does not produce the euphoric effects associated with THC. Instead, it is known for its potential therapeutic benefits, such as reducing anxiety, inflammation, and pain.
Legal Distinctions of CBD vs THC
The legal status of CBD and marijuana varies significantly due to their differing THC content and psychoactive properties. In many regions, these substances’ legality is governed by federal and state laws, leading to a complex regulatory landscape.
Current Financial Services Availability
CBD merchants have more options for credit card processing than marijuana businesses due to the federal legalization of hemp-derived CBD. Payment processors offering services to CBD businesses often require extensive documentation. This includes things like certificates of analysis to ensure compliance with THC limits and other regulations. If you are planning to sell CBD, you need to obtain proper licensing, that much is simple. But it is far less difficult and costly than to sell THC-containing marijuana.
Many marijuana merchants struggle to find credit card processing options due to the conflict between state and federal laws. This conflict deters financial institutions from offering services to the marijuana industry. Those that do often charge high fees and require stringent compliance measures. As a result, marijuana businesses usually resort to alternative payment methods, such as cryptocurrency or cashless ATMs, to facilitate transactions. There is a discussion about reclassifying Cannabis at the federal level in Congres. But the divided nature of the USA government makes it uncertain whether any legislation will be passed. Federal reclassification of Cannabis is on the table in Congress, but considering how divided the USA is, nothing may likely get passed.
Do You Run a CBD or Cannabis Business?
If you run a CBD or Recreational Cannabis dispensary, you know the importance of bookkeeping and legal compliance. Fines are hefty and can even come with jail time if you illegally sell these products without the proper permits, insurance, and licensing. If you’re looking for more information on Hemp Credit Card Processing Services, look no further than here at BrotherProcessing.com
We are proud investors in the Cannabis industry and have worked with countless CBD and related cannabis businesses. From mom-and-pop shops to large publicly traded dispensaries like Emerald Cannabis, we have a solution for every size and scope. Give us a call and let’s discuss your processing needs.