Kratom

The 2026 Regulatory Landscape for Kratom Merchants

In 2026, simply operating in a legal state isn't enough to secure processing. High-risk acquirers now look for "compliance-ready" merchants who can navigate new state-level mandates:

• State Registration & Directories: States like Nebraska now require all kratom products to be registered in a central directory. Without proof of registration, many high-risk processors will decline or freeze accounts to avoid massive civil penalties.
• Third-Party Lab Testing (COAs): Leading kratom extract payment processing solutions now require merchants to provide Certificates of Analysis (COAs) for every batch. This ensures products are free from contaminants and meet the specific alkaloid limits set by individual states.
• Mandatory Age Verification: New 2026 laws require robust, digital age-gating (often 21+) for all online sales. Processors view merchants without these tools as a high liability for "reputational risk."

Why Extract Merchants Face Extra Scrutiny

While plain leaf powder is widely accepted by high-risk banks, kratom extracts often face deeper underwriting. Because extracts are more concentrated, banks scrutinize labeling to ensure no "unsubstantiated health claims" (like treating pain or addiction) are made, which could trigger FDA intervention and merchant account termination.