Kratom retailers — online kratom stores, kratom wholesalers, and retail shops selling kratom powder, capsules, and extracts — face significant payment processing obstacles. Stripe, PayPal, and Square prohibit kratom in their terms of service. Most domestic acquiring banks decline kratom applications outright due to the FDA’s public health advisory and the DEA’s prior proposed scheduling action, even though kratom remains legal federally and in most US states.
Daystar Payments works with kratom retailers and wholesalers to secure merchant accounts through specialized acquiring banks that underwrite the kratom category, including domestic and offshore options depending on your processing needs.
The FDA’s 2018 public health advisory on kratom placed the product in the same risk tier as other botanicals under regulatory scrutiny. Even though kratom is legal in most states and federally unscheduled, most acquiring banks apply the same conservative underwriting they use for CBD and hemp — many simply decline rather than underwrite. The result is that kratom businesses often process through PayPal until terminated, then scramble for alternatives.
Acquiring banks that do underwrite kratom require clean business registration, age verification on the website, clear product labeling compliance with state kratom consumer protection acts (KCPA) where enacted, and typically a rolling reserve during the initial processing period.
Daystar places kratom merchants with acquiring banks — domestic where available, offshore where necessary — that specifically underwrite the category. Accounts include gateway integration for online stores (Shopify, WooCommerce), subscription billing for kratom subscription services, and chargeback-alert tools for dispute prevention. Rolling reserves typically run 5–10% and release on a 90-day rolling basis.
Yes. Kratom retailers can accept credit cards through specialized high-risk merchant accounts. Mainstream processors like Stripe and PayPal prohibit kratom, but acquiring banks that specifically underwrite the kratom category can provide stable card processing for online and retail kratom businesses.
As of 2025, kratom is prohibited or restricted in Alabama, Arkansas, Indiana, Rhode Island, Vermont, and Wisconsin, and in some municipalities. Kratom retailers should confirm compliance with state law before listing products for sale in restricted jurisdictions. Daystar reviews state-by-state compliance during the underwriting process.
Business registration, 3–6 months of bank statements, website with clear product labeling and age verification, and confirmation that you do not sell in states where kratom is prohibited. Processing history from a prior processor helps but is not required for new businesses.
Yes. Kratom subscription and auto-ship services can set up recurring billing through a high-risk merchant account. Daystar configures subscription billing with chargeback-alert tools to keep dispute ratios within acquirer limits.
Yes. For kratom businesses with limited domestic acquiring options — particularly those with prior terminations — offshore acquiring through UK, Malta, or Georgian banks provides access to payment processing with fewer product restrictions.