Arizona KCPA Bill Includes A Measure To Prevent Banks/Credit Card Processors From Blacklisting Kratom Companies; This Sort've Law Is Something The Kratom Industry Desperately Needs
The Arizona KCPA is similar to the KCPA laws passed in other states, since most of the bill focuses on ensuring that only natural, safe, and unadulterated Kratom products are sold on the market.
However, one thing that makes the Arizona KCPA exceptional is that it includes a measure which will prevent banks/credit card processors from blacklisting Kratom companies.
Specifically, the bill states “A FINANCIAL INSTITUTION, SERVICE OR ENTITY, INCLUDING A BANK, CREDIT UNION, CREDIT CARD NETWORK OR CREDIT CARD PROCESSING COMPANY, MAY NOT REFUSE OR TERMINATE SERVICE TO A RETAILER BECAUSE THE RETAILER ENGAGES IN PREPARING, DISTRIBUTING OR SELLING KRATOM PRODUCTS. IF A FINANCIAL INSTITUTION, SERVICE OR ENTITY REFUSES OR TERMINATES SERVICE TO A RETAILER BECAUSE THE RETAILER ENGAGES IN PREPARING, DISTRIBUTING OR SELLING KRATOM PRODUCTS, THE FINANCIAL INSTITUTION, SERVICE OR ENTITY SHALL REESTABLISH OR ACCEPT SERVICE WITH THE RETAILER ON REQUEST OF THE RETAILER, REGARDLESS OF WHETHER THE RETAILER APPEARS ON ANY REPORT GENERATED BY A FINANCIAL INSTITUTION DATA MATCH PROGRAM OR SYSTEM.”
To put this in simpler terms, financial institutions in Arizona will not be able to ban Kratom vendors, and if a financial institution in Arizona does ban a Kratom vendor, then it would be required by law to give that Kratom vendor a chance to re-instate the financial service.
This is critically important since most banks and financial institutions have been banning Kratom related companies, making it extremely difficult for Kratom retailers/vendors/distributors to have access to banking services.
For example, it is common for Kratom vendors to suddenly lose their credit card processor, putting their entire business in jeopardy since if that happens then they are no longer able to process customer orders. This issue is discussed in-depth on a previous article on The Kratom Herald.
Thus, this measure in the Arizona KCPA which protects financial services for Kratom companies is a law that the Kratom industry desperately needs, since until now Kratom companies have struggled to maintain banking and credit card processing services.
That being said, although this financial protection measure included in the Arizona KCPA gives hope to the Kratom industry, it may be a very long time until this sort of measure is implemented nationwide, and for now Arizona is the only state seeking to establish financial protections for Kratom companies.