Kratom vs Supplement Merchant Processing: What's Different
Key Takeaways
- • Kratom faces significantly stricter underwriting than standard supplements
- • FDA classification differences drive processing distinctions
- • Kratom rates average 1-2% higher than nutraceutical processing
- • Reserve requirements are typically 2-3x higher for your accounts
If you sell both kratom and other supplements, understanding why payment processing differs from standard nutraceutical processing helps you navigate the landscape and set realistic expectations.
Regulatory Classification Differences
Standard Supplements
- • Covered under DSHEA (1994)
- • FDA-regulated as dietary supplements
- • Generally Recognized as Safe (GRAS) for many ingredients
- • Clear labeling and manufacturing guidelines
- • Established industry trade associations
Kratom
- • Not officially classified as dietary supplement
- • FDA has issued public health advisories
- • Import Alert 54-15 allows detention
- • No official GRAS status
- • Banned in 6 states and multiple localities
Processing Terms Comparison
| Factor | Standard Supplements | Kratom |
|---|---|---|
| Processing Rate | 2.0-3.5% | 2.95-4.5% |
| Rolling Reserve | 0-10% | 5-15% |
| Reserve Hold Period | 90-180 days | 180-365 days |
| Initial Volume Cap | $50K-$250K/month | $25K-$100K/month |
| Approval Timeline | 3-7 days | 5-14 days |
| Processor Availability | Many options | Limited specialists only |
Underwriting Requirements
Standard Supplement Requirements
- ✓ Standard business documentation
- ✓ Product labels meeting FDA guidelines
- ✓ Return policy
- ✓ Processing history (if available)
Additional Kratom Requirements
- + Third-party lab testing certificates (COAs)
- + Age verification implementation proof
- + State restriction policies and geo-blocking
- + Website compliance audit
- + AKA GMP certification (recommended)
- + Detailed product sourcing documentation
Website Compliance Differences
Supplements Allowed
- • Structure/function claims with disclaimer
- • Customer testimonials about experience
- • Comparison to competitors
- • Standard marketing language
Kratom Restrictions
- • No health or medical claims
- • No therapeutic benefit statements
- • No comparison to drugs/opioids
- • No consumption method suggestions
Can I Process Both on One Account?
Generally no. Most processors require separate merchant accounts for kratom and standard supplements because:
- • Different MCC codes and risk classifications
- • Different reserve requirements
- • Different compliance monitoring needs
- • Kratom volume could jeopardize the supplement account
Frequently Asked Questions
Can I add kratom to my existing supplement merchant account?
Usually no. Most supplement processors explicitly prohibit kratom. Adding it without disclosure will result in termination.
Will kratom become easier to process if it gets FDA approval?
Yes, official GRAS status or dietary supplement classification would significantly reduce processing friction and potentially lower rates.
Are rates negotiable for established kratom businesses?
Yes. With 12+ months of clean processing history and low chargebacks, you can often negotiate better rates and lower reserves.
Why can't I just call kratom an "herbal supplement"?
Processors specifically screen for kratom regardless of how you label it. Misrepresentation is grounds for immediate termination and MATCH listing.
Is it easier to process kratom internationally?
Some offshore processors have more lenient policies, but you'll face currency conversion costs and potentially reduced consumer trust.
Do I need separate websites for kratom and supplements?
Recommended but not always required. Separate sites allow different merchant accounts and cleaner compliance management.
Ready to Get Started?
Get a free quote for your kratom business and speak with a specialist who understands your industry.