Sovereign Nations. Different Laws. One Complicated Payments System.
Sovereign Nations. Different Laws. One Complicated Payments System. On Indigenous Peoples' Day, it's time to examine why tribal gaming, ...
In an era when high-risk e-commerce sectors face hurdles in accessing banking and financial services, a new solution emerges: Q-Transact. Designed specifically for the high-risk sectors of e-commerce, which include cannabis, CBD, hemp, nutraceuticals, and telehealth industries, Q-Transact aims to provide safe and compliant e-commerce opportunities.
Unlike traditional e-commerce platforms, Q-Transact provides added layers of compliance at a competitive price point, positioning itself as a viable alternative for businesses navigating the complexities of highly regulated industries where credit card merchants and banking services must conduct regular monitoring and audits of activity.
Q-Transact was created to provide useful utility to high-risk e-commerce companies, like those in the cannabis, CBD, hemp, nutraceuticals, and telehealth/telemedicine industries.
High-risk industries have historically been denied access to banking and financial services due to a combination of factors. One of those factors is the Bank Secrecy Act (BSA), which aims to prevent money laundering and other financial crimes by requiring financial institutions to report certain transactions and maintain records of them.
Although BSA itself does not directly lead to the refusal of banking services for high-risk businesses, its stipulations and related regulations may indirectly affect these companies by leading to a temporary or permanent discontinuation of their banking services if information is not properly disclosed or is not received by the financial institution from the merchant in a timely manner.
This may happen because financial institutions are subject to stringent regulatory requirements under the BSA. They are required to conduct upfront due diligence and regular audits on their customers, monitor content such as marketing claims and other aspects of the website and social media, monitor transactions for suspicious activity, and report certain transactions to regulatory authorities, meaning that banks may be hesitant to provide services to businesses deemed high-risk due to the potential for increased regulatory scrutiny and the associated costs and risks. The bottom line is that compliance with these requirements has caused the provision of these services to be costly to both banks and merchants.
High-risk businesses, like those operating in the cannabis and CBD space, are perceived as having a higher risk of involvement in money laundering. These businesses can be problematic for banks due to their products not being federally legal or because they have a high potential for charge-backs, fraud, or money laundering activity. Banks may choose to deny these companies financial services or impose stricter requirements like increased due diligence, ongoing monitoring of the business, stricter documentation requirements, and higher fees.
The Qredible mission has always been to bridge this gap and to make safe and compliant commerce available to high-risk businesses while reducing the cost of compliance to all parties.
The Q-Transact platform provides everything you need to run your e-commerce business safely, securely, efficiently, and compliantly. Through our user-friendly interface, you have complete visibility into and control of:
The biggest differentiator between Q-Transact and other e-commerce platforms that work in the high-risk space is the functionality, transparency, and automation of compliance functions. Q-Transact is typically less expensive than its competitors and includes an added layer of compliance by enabling merchant processors and banks to have automatic access to critical data, documents, and product modifications or critical transaction alerts—a critical aspect of participating in highly regulated industries.
Shopify, Squarespace, and other e-commerce platforms have a history of shutting down CBD e-commerce sites - often with no notice - due to a combination of compliance risks and the BSA.
These business horror stories are becoming more common, and it could happen to you at any time. While some Shopify cannabis businesses are still up and running, no one knows when they could be taken down, and these suspensions typically happen with little warning or time to prepare a contingency.
Q-Transact has partnered with a few high-risk payment processors to bring safe and compliant e-commerce to high-risk industries. Through Q-Trust, our interactive and real-time compliance monitoring system, these payment processors and merchants can sell their products, run their businesses, and cut the cost of compliance.
The Qredible ecosystem is robust and adds layers of useful utility and compliance to both merchants and their financial service providers.
Ready to learn more? Set up a call today. We’re ready to discuss how Q-Transact can help your cannabis, CBD, hemp, nutraceuticals, or telemedicine business succeed.
