Underwriters Shouldn't Be Reading Lab Reports
Underwriters Shouldn't Be Reading Lab Reports The Manual COA Problem Is Becoming One of the Biggest Compliance Gaps in Regulated Payment...
The path from CBD entrepreneur to industry innovator isn't always straightforward. During a recent Qredible Live broadcast, Drew Harris, Director of National Accounts, shared his journey through the complexities of CBD business operations - from banking hurdles and compliance challenges to pioneering solutions that are reshaping how the industry approaches these crucial aspects of business.
"I thought I could just go right to a Wells Fargo or a Chase Bank and open up a regular business account," Harris recalled, describing his initial optimism. Armed with his business license and entrepreneurial enthusiasm, he walked into his first bank meeting. However, the moment he mentioned CBD products, the response was immediate and deflating: "Sorry, we can't help you with that."
This scene would repeat itself at multiple banks, forcing Harris to adapt. He learned to describe his products as "natural ingredients" - a strategy that worked temporarily but ultimately led to more complications. Three months into CBD business operations, his account was suddenly shut down without explanation.
The challenges weren't limited to basic banking. Harris discovered concerning security issues within the industry's merchant processing systems. In one alarming instance, he received application paperwork containing another merchant's complete information - including social security numbers and personal details. "I was getting information of other people's accounts," Harris revealed, highlighting the serious security concerns plaguing the industry.
These challenges led Harris to Qredible, where his experience as a frustrated business owner would help shape new solutions for the industry. With sixty-plus products in his lineup, Harris faced the daunting task of managing Certificates of Analysis (COAs) for each item - a crucial requirement for maintaining banking relationships and ensuring compliance.
The traditional COA process was cumbersome: manufacturers would send products to labs, labs would return results to manufacturers, who would then forward them to merchants. This multi-step process created numerous opportunities for errors and delays. Working with Qredible, Harris helped develop a streamlined approach where COAs flow directly from labs to merchants through a secure portal.
The innovations didn't stop at COA management. Harris faced another significant challenge: creating compliant product labels without graphic design expertise. Qredible's solution was a 3D rendering system that balanced compliance requirements with marketing flexibility.
"What it allowed me to do was be creative from a sales standpoint to be able to sell product, but also keep me compliant," Harris explained. He could add seasonal elements - shamrocks for St. Patrick's Day or ornaments for Christmas - while the system maintained required compliance elements like ingredients and usage information.
Today, Qredible's COA management system has evolved far beyond its initial capabilities. The platform now incorporates blockchain technology for verification, natural language processing to extract data, and advanced analytics to ensure compliance across different jurisdictions. Most importantly, these features can integrate with existing websites and point-of-sale systems, allowing businesses to boost their compliance without completely overhauling their operations.
The development of these solutions wasn't just theoretical - it was driven by real-world challenges. Before Harris's involvement, Qredible's founders had witnessed firsthand the devastating impact of compliance issues. In one instance, they were consulting for a large CBD company when its merchant processing was suddenly shut down, threatening to halt operations completely.
This experience, combined with Harris's journey as a CBD entrepreneur, has shaped Qredible's approach to solving industry challenges. "Being in the position I am now, I felt the pain as a merchant," Harris reflected. "Being on the other side, being able to help merchants is a great part of the job that I have today."
As the CBD industry grows, compliance requirements are becoming increasingly stringent. Harris and the Qredible team remain at the forefront of developing solutions that help businesses navigate these challenges. Their microservice approach allows companies to implement specific compliance tools without completely replacing their existing systems - a flexible solution for an industry in constant flux.
For businesses facing similar challenges, Harris maintains an open-door policy. He can be reached directly at drew@qredible.com or through LinkedIn. Additionally, Qredible's website offers the opportunity to book a thirty-minute consultation to discuss specific compliance challenges and solutions.
In an industry where compliance requirements can change overnight, having experienced guides who understand both CBD business operations and the technical challenges can make the difference between success and struggle. As Harris's journey demonstrates, sometimes the biggest challenges lead to the most innovative solutions.
