Delta-8 has surged in popularity in the last couple of years, generating $2 billion in revenue. If you’re thinking about selling it in your convenience store — now is the time to do it.
But be warned: Selling delta-8 and other CBD products will put you in the “high-risk” bracket, meaning you’ll struggle to get a business account or any support from banks. Delta-8 payment processing isn’t straightforward — but it can be.
In this article, we’ll dive into:
- Payment processing challenges you will face
- Delta-8 selling laws and regulations
- How a convenience store point of sale (POS) system can help
You’ll leave this article with the knowledge you need to confidently sell delta-8 in your convenience store.
Understanding the Challenges With Delta-8 Payment Processing
Setting up payment solutions for delta-8 products can be tricky. As a convenience store owner, you’ll need to overcome some obstacles — the first being the “high-risk merchant” label.
In the payment industry, merchants selling certain products or services are categorized as high-risk. This includes businesses operating in sectors such as CBD and hemp, cryptocurrency, and adult entertainment.
Because of the association with cannabis and its muddy legal status, delta-8 sellers fall into the high-risk bucket. This high-risk profile impacts everything from banking relationships to credit card processing fees. So, what can you do?
The first step is to understand everything there is to know about selling delta-8, and then find a high-risk payment processor or point of sale provider to help you navigate the various challenges you face.
Related Read: Best POS System for Convenience Stores: 5 Providers
What Challenges Do you Face?
It can be extremely challenging for high-risk merchants to secure retail payment processing.
Banks tend to avoid offering high-risk merchants business accounts or payment services because they are more likely to experience chargebacks, returns, fraud, or legal issues. As a high-risk seller without bank support, you might turn to pricier, specialized payment processors.
Navigating compliance requirements and regulations is another hurdle when it comes to setting up payment solutions. While hemp-derived delta-8 is legal at the federal level, state regulations vary. Staying compliant means knowing the laws in your state and city.
Note: Delta-8 THC is legal at the federal level, but marijuana-derived delta-8 is classified as a Schedule I drug under federal law.
Where Is Delta-8 Legal?
Navigating the complex legal landscape of hemp derivatives such as delta-8 is tricky. While it’s legal at the federal level, laws regarding Delta-8 vary between states.
As of 2023, Delta-8 is illegal in:
- Alaska
- Arizona
- Arkansas
- Colorado
- Delaware
- Idaho
- Iowa
- Mississippi
- Montana
- North Dakota
- Rhode Island
- Washington
However, just because it’s legal in other states doesn’t mean selling delta-8 is simple. Some states regulate the production and sale of delta-8, including:
- Florida
- Kentucky
- Louisiana
- Minnesota
- South Dakota
- Tennessee
- Vermont
- Virginia
In other states, where marijuana is legal, delta-8 is regulated by agencies that keep a watchful eye over cannabis substances. These states include:
- Connecticut
- Maryland
- Michigan
- Nevada
- New York
- Oregon
- Utah
It’s important to note that delta-8 is not approved by the FDA and remains a legal gray area in many states. Laws are rapidly changing, so it’s crucial to comply with all federal, state, and local laws that may impact your business. These include:
- Ensuring all delta-8 is derived from legal hemp sources with less than 0.3 percent THC
- Obtaining proper licensing for manufacturing and selling delta-8 products
- Following product testing and labeling requirements
- Restricting sales and marketing where delta-8 is prohibited
- Staying up to date on legal changes and modifying business practices
So, what are your options as a convenience store with high-risk products?
Payment Processor or High-Risk POS?
You could spend hours looking for a payment processor or setting up a merchant account — fill out applications, wait to be approved, and then integrate these solutions with your other systems — or you could work with a provider like C-Store POS that has a high-risk payment processing partner baked in.
A high-risk POS system helps manage transactions securely and ensures compliance with age verification regulations. Modern POS solutions help minimize fraud and human error.
At C-Store POS, we offer high-risk processing for CBD, kratom, delta-8, and tobacco products. Even if you don’t choose us for your POS needs, make sure you find a provider that has its own payment processing partner that handles high-risk transactions or lets you integrate any third-party merchant processor into your POS system.
Other features to look out for in a high-risk POS system include:
- Age verification: Ideally, you want a system that lets you scan customer IDs. This captures the date of birth and stores details in a database. Scanning also helps verify whether an ID is fake, unlike manually entering a date of birth.
- Inventory management: Whether you’re selling delta-8, kratom, or e-cigarettes, you need a POS system that tracks unlimited products and variations. With deep insight into inventory, you can find out which products are selling well so you always align with customer demand.
- Employee management: Compliance is a major part of selling delta-8, so you want to ensure your employees sell legally. You can set permissions for which employees can process delta-8 sales, give employees access to adjust inventory levels, and provide training on age verification.
Related Read: Convenience Store Technology: 5 Tools To Modernize Your Store
Delta-8 Payment Processing: Sell With Confidence
Selling emerging products like delta-8 can help keep your convenience store competitive. While there are various challenges, there are also opportunities. If customer demand for delta-8, kratom, and more keeps growing, having the right POS and payment solutions is essential.
With the right tools to seamlessly process transactions, manage compliance restrictions, and optimize inventory — while providing customers with a smooth checkout experience — C-Store POS is the partner you need to sell delta-8 and create new revenue streams.
But don’t take our word for it. If you have more questions about high-risk payment processing and how our POS system helps manage your convenience store, schedule a demo today. We’ll walk you through our solution and answer any questions you may have.
