CBD Processing Partner Sales Training�Overview�

March 2025

CBD Retail Card Present��

• Sponsor Bank: Merrick Bank
• Boarding Tool: Merrick MPA (IC+ or Flat Rate) via iEntry Online Application Tool
• Supported Platform: FDC Omaha
• Supported Equipment: FDC Omaha supported devices (Clover, ValorPay, FD, etc.)
• Customer Service: Paysafe in-house support
• Cash Discount: Available on Terminal and Clover Hardware solutions
• Next Day Funding Available: Subject to merchant approval

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CBD Process Flow��

Partner signs CBD merchant on Merrick FDC Omaha MPA via iEntry; adds signed CBD Attestation form and COAs thru iAccess Portal.

Partner monitors account status in IAccess.

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Approved MID forwarded to Boarding and Deployment. MID status tracked via iAccess.

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Merchant receives Welcome iAccess emails, etc. invitation to log in.

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Statements flow thru iAccess. Standard Customer Service number on statements

Partner Residuals paid thru RP3 combined with other residual reporting.

Merchant Description

Existing brick and mortar merchants that are looking to stock and sell CBD products at their retail locations as auxiliary sales (less than 20% of all sales are CBD).

**Merchants operating in the following states are not qualified for the program currently due to state legal restrictions (subject to change per changes in state laws and their stances on this product).

Iowa, South Carolina

Merchants are unqualified from this program if they also sell any of the following:

• Marijuana-based CBD, synthetic marijuana, CBD with concentration higher than 0.3% THC or CBD distributed from a non-reputable distributor/manufacturer.

Delta-9 cannot exceed 0.3% using the following calculation (delta-9-THC% + THCA% x 0.877).

Delta-8 is only permissible for retail merchants in states where product is legal. Please check individual state legislation regarding states that allow.

Cannot be marketed in any manner as products claiming to treat, diagnose, mitigate, prevent or cure any disease (including on Merchant’s website or a website under Merchant’s control). Does not reference or market to marijuana culture (ex. DBA, website, advertising contains refences to language like 420, Cannabis, Marijuana) OR Health and Wellness (i.e., build strong bones, bowel regularity, joint strengthening, brain health, treats acne, prevents sickness, anxiety and depression, or inflammation and pain).

Cannot be marketed towards children.

Merchants must complete and sign MPA as well as CBD Attestation Form upon submission for full underwriting review. Bank will require at least 3-5 CBD Certificate of Analysis (COAs) for products sold instore.

• Merchants must agree on the CBD Attestation Form to accept a different form of payment for Kratom sales
• If the merchant is processing already, we still require the CBD Attestation Form to be completed and filed with MPA submission and COAs
• Bank review and approval comes ONLY when all documents have been collected (signed CBD Attestation Form, MPA and COAs)

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CBD in Retail Environment

(ex. Smoke Shop, Grocery Store, Convenience)

Volume Limits

Keyed Activity Prohibited

Merchants that are eligible for the program will process no more than $150,000 gross monthly processing volume or a $3,000 High Ticket. Anything above this volume/high ticket may require additional documents including previous processing/bank statements and financials.

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Merchants that are eligible for the program will process 100% of volume as a card-present sales. Kratom Sales cannot be processed through the merchant account (see CBD Attestation Form). Keyed transactions will be subject to RISK Flag and possible closure of merchant account.

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CBD in Retail Environment�(ex. Smoke Shop, Grocery Store, Convenience)���

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Risk Controls/Expectations

Underwriting Requirements

• Completed Application Package with Imprinted Voided Check or Signed Bank Letter (sales offices will be trained on minimum requirements)
• Normal underwriting practices of KYC are required, even if migrating from another bank with previous history
• Underwriting still has the option to decline if reputational risk concerns arise after review
• Merchant website required (even if informational only)

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• Site Survey completed by agent person, if agent feels they cannot verify via in person visit or sufficient online presence, a third-party service should be used
• Completed and signed CBD Attestation Form
• Provide 3-5 COAs (Certificate of Analysis) for the merchant’s mix of CBD products in-store (for more information, please see Sample COA slide)

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• Merchants will be monitored by the risk department to ensure they are processing within the program’s thresholds, namely volume not to exceed $1.8M annually, or $150K a month. Risk will ensure keyed activity does not happen. Risk will proactively reach out to the agent/merchant when a merchant is coming close to breaching their approved processing limits. Failure of the merchant to stay within the program’s volume and card present only requirements could result in risk review including exclusion from the program, holding funds and termination.
• Merchants will be required to provide supporting documents to help mitigate breach in processing volume, high ticket or other documents pertaining to Risk Flag as part of ongoing Risk Monitoring and Control measures.
• Merchants will also be monitored to ensure sales are only taking place in states and to residents of states where CBD is legal, being supplied by legal manufacturers, and can provide proof of age verification as this is required to ensure CBD is not being sold to minors.

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Merchant Description

Merchants whose main business is the sale of CBD products. No more than 10% of CBD Products are ingestible (CBD Gummies or Supplements).

**Merchants operating in the following states are not qualified for the program currently due to state legal restrictions (subject to change per changes in state laws and their stances on this product).

Iowa, South Carolina

Merchants are unqualified from this program if they also sell any of the following:

• Marijuana-based CBD, synthetic marijuana, CBD with concentration higher than 0.3% THC or CBD distributed from a non-reputable distributor/manufacturer.

Delta-9 cannot exceed 0.3% using the following calculation (delta-9-THC% + THCA% x 0.877).

Delta-8 is only permissible for retail merchants in states where product is legal. Please check individual state legislation regarding states that allow.

Cannot be marketed in any manner as products claiming to treat, diagnose, mitigate, prevent or cure any disease (including on Merchant’s website or a website under Merchant’s control). Does not reference or market to marijuana culture (ex. DBA, website, advertising contains refences to language like 420, Cannabis, Marijuana) OR Health and Wellness (i.e., build strong bones, bowel regularity, joint strengthening, brain health, treats acne, prevents sickness, anxiety and depression, or inflammation and pain).

Cannot be marketed towards children.

Merchants must complete and sign MPA as well as CBD Attestation Form upon submission for full underwriting review. Bank will require all CBD Certificate of Analysis (COAs) for products sold instore.

• Merchants must agree on the CBD Attestation Form to accept a different form of payment for Kratom sales
• If the merchant is processing already, we still require the completed CBD Attestation Form, signed MPA submission and COAs
• Bank review and approval comes ONLY when all documents have been collected (signed CBD Attestation Form, MPA and COAs)

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6

CBD Retail Only

(ex. CBD Retail Storefront)

Volume Limits

Keyed Activity Prohibited

Merchants that are eligible for the program will process no more than $150,000 gross monthly processing volume or a $3,000 High Ticket. Anything above this volume/high ticket may require additional documents including previous processing/bank statements and financials.

​

Merchants that are eligible for the program will process 100% of volume as a card-present sales. Kratom Sales cannot be processed through the merchant account (see CBD Attestation Form). Keyed transactions will be subject to RISK Flag and possible closure of merchant account.

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CBD Retail Only�(ex. CBD Retail Storefront)���

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Risk Controls/Expectations

Underwriting Requirements

• Completed Application Package with Imprinted Voided Check or Signed Bank Letter (sales offices will be trained on minimum requirements)
• Normal underwriting practices of KYC are required, even if migrating from another bank with previous history
• Underwriting still has the option to decline if reputational risk concerns arise after review
• Merchant website required (even if informational only)

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• Site Survey completed by agent person, if agent feels they cannot verify via in person visit or sufficient online presence, a third-party service should be used
• Completed and signed CBD Attestation Form
• COAs for all CBD products from the manufacturers (for more information, please see Sample COA slide)
• Additional Documentation might be required after initial review

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• Merchants will be monitored by the risk department to ensure they are processing within the program’s thresholds, namely volume not to exceed $1.8M annually, or $150K a month. Risk will ensure keyed activity does not happen. Risk will proactively reach out to the agent/merchant when a merchant is coming close to breaching their approved processing limits. Failure of the merchant to stay within the program’s volume and card present only requirements could result in risk review including exclusion from the program, holding funds and termination.
• Merchants will be required to provide supporting documents to help mitigate breach in processing volume, high ticket or other documents pertaining to Risk Flag as part of ongoing Risk Monitoring and Control measures.
• Merchants will also be monitored to ensure sales are only taking place in states and to residents of states where CBD is legal, being supplied by legal manufacturers, and can provide proof of age verification as this is required to ensure CBD is not being sold to minors.

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Merchant Attestation Form��

• The CBD Attestation Form must accompany every new merchant application

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• Applications without the CBD Attestation Form will be rejected and listed as pending in iAccess Portal

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• Kratom clause states, “Merchant understands and agrees that, if applicable, it shall not use a Paysafe merchant account to sell Kratom”

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• A Site Inspection is required on all new accounts/locations.

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• Target Market must be listed on CBD Attestation form and merchant signor to initial in all spots

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• Exhibit One of the CBD Attestation form must be completed

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• CBD in Retail Environment merchants will require 3-5 CBD products listed on Exhibit One of CBD Attestation Form

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• CBD Retail Only merchants will require their Top 20 CBD Products and all CBD Product COAs (bank requirement) sold instore

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Sample Merchant COA (Certificate of Analysis)�

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• COAs are standard for all manufacturers to provide to anyone who purchases their products (if client/manufacturer does not have available, Paysafe will not board the merchant)
• COAs must be third party analysis aside manufacturer
• COAs for CBD Product(s) must show at minimum THC and CBD % make up
• COAs must show all compounds in product

*Example shown is strictly for show, this compound’s percentages are not indicative of an approval*

Appendix�

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• Site Inspection can be done by Agent by completing section within the Merrick MPA

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• Alternatively, the Site Inspection can be done by a Third-Party (suggestion/example Spectrum)

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Example of Site Inspection by Spectrum��

Site Inspection company suggestion but partner is free to choose a company of their choice. A sample is provided here from Spectrum.

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Example of Site Inspection Results by Spectrum��

Thank you �and here is �to your new Experience.