September 2022 UPDATE: The Seed bank MSNL has updated its payment system to now include Paypal, Cashapp, and Venmo. This means MSNL is one of the only legit seed banks in the world to offer PayPal as a payment method. Just make sure you follow their instructions closely.
Continue the article below…
Paypal is one of my favorite payment methods, I use it to pay for everything I buy online. It’s fast, safe, and convenient.
That’s why I find it so frustrating that most seed banks don’t accept it as a form of payment.
Paypal’s user agreement policy prohibits sellers from receiving payments for “narcotics, steroids, controlled substances, and paraphernalia”. Due to this, the vast majority of seed banks have stopped accepting Paypal as a form of payment.
That said, there are some smaller and more secretive seed banks that may continue to use Paypal.
However, buying from these is not recommended due to legal implications, as well as your own safety.
Keep reading to find out why Paypal has this policy and why you should avoid seed banks that still accept it.
Table of contents
Why Do Many Seed Banks Not Accept Paypal?
Seed banks do not accept Paypal because marijuana is a controlled substance within the USA and in many other countries around the world.
While cannabis seeds are not technically classified as a controlled substance, Paypal chooses to err on the side of caution.
While seed banks may operate for years while using Paypal, a single transaction may be flagged by federal regulators or prosecutors.
Federal agencies have the potential power to freeze payments, shut down accounts, and worse.
Another reason why most seed banks no longer accept Paypal is due to high transaction costs. As of right now, Paypal charges a 2.9% fee, plus an additional $0.30 USD on all transactions. These Paypal transaction fees can even be much higher depending on the country you are in and sending it to.
The combination of high transaction fees and the potential for legal ramifications has forced most seed banks to stop using Paypal.
Why You Should Avoid Paypal When Buying Cannabis Seeds Online.
Even if you find seed banks that accept Paypal, it’s not a good idea to pay using this method.
There are two main reasons why you should avoid using Paypal to purchase cannabis seeds:
1. Your PayPal Account Could Get Shut Down
The main reason to avoid using Paypal to purchase from seed banks is that it may have consequences for your PayPal account.
If the payment is flagged as having been for a prohibited substance that goes against Paypal’s user policy, your account will likely be shut down.
It is unlikely that federal prosecutors will come after you for buying seeds online.
However, to avoid any legal issues, Paypal may flag you and potentially ban you from using their service in the future.
About a year ago, I had a friend who purchased a large number of seeds using Paypal.
His account was flagged and then shut down shortly afterward.
He also never received his seeds in the mail.
Although Paypal does not expressly state that purchasing seeds is prohibited, it appears to be monitored on a case-by-case basis. It is rare for Paypal to take action against buyers, but still possible.
2. Refund Issues
The other reason why Paypal is best avoided for seed bank purchases is due to issues with delivery and quality.
When you pay for your seeds using a method such as a credit card, you are much more secure. If your shipment goes missing or you get substandard products, you can return them and get your money back.
However, if you use Paypal, you will have to go through their moderation system to get your money back. If Paypal figures out that your payment was used for cannabis seeds, they will most likely not assist you in getting your refund.
Is This Likely To Change In The Future?
I do love using Paypal for everything and anything, so it is my hope that seed banks will start accepting it again in the near future. How likely is this to happen though?
The Current Administration
What needs to be said is that the current Republican administration in the USA has taken a very hardline stance against drugs. The current president and his cabinet have done everything in their power to block anything pro-cannabis.
Under the current administration, the stance towards cannabis, and towards using Paypal to pay for seeds and paraphernalia, is unlikely to change. I cannot see the current POTUS changing his mind on the matter.
The SAFE Banking Act
That said, there is a small glimmer of hope for those of us looking to use Paypal to buy cannabis seeds.
It has to do with the recently introduced SAFE Banking Act. The SAFE Banking Act is a piece of legislation which aims to make it illegal for federal prosecutors to go after banking institutions such as Paypal, for dealing with illegal substances.
This is the case as long as the substance in question was purchased in a US State where the substance is legal.
This would mean that federal authorities could not prosecute Paypal for accepting payments for cannabis seeds.
This would make it much safer for seed banks and Paypal to work together, as both parties would not be at risk of facing federal repercussions.
Yet, now, this act has not yet been approved. The current government has taken a hard stance against cannabis, as well as this SAFE Banking Act. Although there is some hope for this act passing in the distant future, the chances now are not great.
What Payment Method Should You Use Instead?
There are a few payment methods which I prefer, both due to security reasons and for refund reasons.
Bitcoin & Cryptocurrencies
Bitcoin and altcoins are always the go-to payment methods for me.
The reason is that Bitcoin wallets and payments cannot be traced and are very secure.
Most seed banks also offer a generous discount on your order if you pay with bitcoin.
Check out how easy it is to create a bitcoin account below
Using a credit card to buy from seed banks is always a safe bet. Reputable seed banks have secure payment gateways which keep your financial information safe. Also, if you need a refund for any reason, getting it from your credit card provider is usually no problem.
I am also fine with using debit cards to pay for cannabis seeds. The only difference between using your debit and credit card is paying with existing funds and paying via credit.
Bank Transfers & Money Orders
Depending on where you live, you may or may not be able to pay for seeds using bank transfers, E-transfer, and money orders. These all tend to be very safe and secure payment methods. That said, getting a refund after having paid with any of these methods may be problematic. Most of these methods also come with hefty transaction fees.
Although you can take your chances and send cash in the mail, this is not recommended. If your cash goes missing, there will be nothing you can do about it.
I have lost a cash payment in the mail, and have never tried doing so again. If a seed bank is not reputable, they may even receive your cash but refuse to acknowledge it.
Which Seed Bank Should You Use?
You want to buy from reliable seed banks with high trust ratings and a variety of secure payment methods. Here are some of my personal favorites.
Here I have also included a detailed guide that outlines the most reputable seed banks to buy from. You never want to take risks here, especially when it comes to seed banks that are trying to deceive Paypal.
Seed Banks That Take PayPal
In short, any reputable seed bank will not accept PayPal.
So even if you do manage to find seed banks that accept PayPal, I would not recommend purchasing from them.
Seed banks that still accept Paypal run the risk of legal complications.
At the very least, your Paypal account may get shut down.
Also, if you need a refund for your seeds, you won’t be able to request it via PayPal.
Let me know if you have any questions in the comments!