Podcast The Hemp Revolution

Finding Dependable and Scalable Banking and Merchant Processing Solutions in the Hemp and Cannabis Industry with Steven Anderson

ep 64 Steven Anderson

Steven Anderson is the owner and founder of Quivverpay, a company that specializes in providing industry-leading payment solutions for businesses.

In this episode, he talks about one of the biggest challenges in the hemp and cannabis industry, banking and merchant processing and how they’re solving this.

Whether you’re running an online business or a brick and mortar store, they have perfectly crafted options for you. Stay tuned to learn more.

Our goal is to try to get businesses online quickly and give the processing bandwidth just as high as we can get it without requiring a reserve account, a cash reserve account and not having to pull a percentage of their processing office reservedSteven Anderson

Download The Episode Companion For This Episode

Some Topics We Discussed Include

2:03 – From manufacturing and fulfillment to establishing his own banking and merchant processing platform
7:17 – Ideal Clients for Quivverpay
11:43 – Challenging situations that they’re having trouble finding solutions right now
14:17 – The most exciting part of their job
15:40 – A heartbreaking story that propelled Steven to the cannabis and hemp industry

People Mentioned / Resources

Connect with Steven Anderson

Connect with Sonia Gomez


Sonia Gomez: What’s up, guys? Sonia Gomez coming to you from MJ Biz Con 2019 live in Las Vegas, super excited to be here with you on another rock star, rock your socks episode of The Hemp Revolution Podcast where we are sharing the real story from the perspective of the people who are transforming the way that we are doing business in cannabis and hemp right now. 

We just met with somebody who’s in manufacturing. We have another partner coming online right now but he is solving for another very significant challenge in the industry right now, which is often preventing your ability to get access to the products that you are excited about and the brands that you’re excited about. And that challenge is merchant processing and banking. 

Our buddy Steven Anderson and also the owner and founder of Quivverpay is here with us to share a lot about the solutions that we can bring to the table that Quivverpay is actually solving right now for the industry [inaudible]. Talk a little bit about the challenges and how Quivverpay is solving those immediate problems. 

So Steven, first of all, why don’t you tell us a little bit about who you are and what you’re doing because Quivverpay is not your only super trick in the world. You’re also one of the only GMP certified manufacturing facilities for CBD. You’re fully vertical out of Oklahoma, you also do fulfillment for a lot of the more significant brands in the country right now, in the world. You’re doing some incredible things. And now you’re adding Quivverpay and banking, merchant processing to your bank of solutions. How does a man get so great? Wow.

From Manufacturing and Fulfillment to Establishing His Own Banking and Merchant Processing Platform

Steven Anderson: Well, thanks for having me. First of all, yeah, amazing. And this little purple thing is like driving me crazy. 

Sonia Gomez: Take it off.

Steven Anderson: I’m a little confused here. So I think thanks for saying that. It sounds really impressive when you say it like that. Sounds like well, I got a lot going on. But yeah, you know, we got in the manufacturing business in the dietary supplement category about a decade ago and that has just grown into a pretty big operation and we saw the CBD space and I sat on the sidelines for a long time. I didn’t understand it. And the banking regulations were really weird. The FDA was really weird. They’re still weird a little bit on it. 

But we decided to take our GMP processes and lay them over the top of an industrial hemp extraction, compounding, and finished goods manufacturing business. And so we’ve taken that GMP process, hundreds of SOPs, about 116 [inaudible]. And later on the top of manufacturing, and it’s been a phenomenal experience. It’s been hard, do it the right way. But we’re building for the long term. 

And today I can say we’re probably operating the only facility in Oklahoma and I think maybe even the only facility in the US that’s actually GMP certified learning industrial hemp processing compound manufacturing. So for finished goods, so it’s really exciting for us, how we got into all this and how it became so great. Great. So it’s definitely subjective but I think really love what we do,

Sonia Gomez: I use the word great. And I think it could be considered a general term. But I use that word because there are real people who are having real struggles solving one problem. And you guys happen to be solving three various significant challenges for the industry simultaneously and almost under one roof. So the thing that’s unique about that, for me is it shows the capacity of the mind, but also at the team. And the right now, time is of the essence. So if you can get things done under one roof, and have those key solutions in place, that’s money for me.

Steven Anderson: But it definitely solves a lot of problems. At the same time. We were fortunate enough to mention the right word team, the connections that we have, the people that we’ve hired and the relationships we built over the last 10 years in various verticals from e-commerce forward have given us an advantage and I’m definitely a big dreamer because I have a passionate of heart for entrepreneurs. so do I Partners, like you obviously, have a huge passion for the entrepreneur and helping them solve their challenges. 

I'm definitely a big dreamer because I have a passionate heart for entrepreneurs. - Steven Anderson Click To Tweet

And so, being that the entrepreneurs, the center of our business, I identify consistent pain points. And then I start asking questions. Do we have the bandwidth? We have the talent, do you have the resources to help solve that problem, too. And it just so happens that manufacturing and fulfillment really was fairly straightforward for us a lot of work, but we understood it. 

And then the banking thing became the next passion for like, how do we get these guys that have phenomenal products? They’ve invested with genetics and research and farming and all these things and taking it down to finished goods now they need to sell it, how they take payment from somebody, both in the cannabis and the hemp side, actually, and how do we do that? And knowing that the banking world was, you know, we all know banks don’t take risks. They charge you for not taking a risk, but they don’t really want to take a risk. And there’s a lot of good things happening in that space. 

Merchant Processing Solutions in the Hemp

But we decided we jumped full bore in and earlier this year we took Quivverpay the platform and invested in a banking solution. And it’s working out great, because we’re actually bringing both startups and even publicly traded companies we’ve got on our platform processing for industrial hemp, and in the dispensary level, a very solid, predictable, affordable solution for cannabis distribution. 

And it’s, it’s actually, I mean, it’s mind-boggling that it’s working because it was a dream. But I feel really fortunate that it is that our entrepreneurs are benefiting from it because they can actually sell products, get cash flow their businesses without their making.

Sonia Gomez: You know, this is really significant for the industry, especially as it becomes more widely accepted across the country and around the world. We’re really looking at global enterprise blossoming here, but if we just look at our neighbors, our friends, our communities, it’s been really really difficult especially from May June July of this year. A lot of businesses whether you are a brand new startup or doing seven figures a month lost their process. And their ability to connect directly to the consumer online. And that’s where a lot of the buying is happening right now. So when 

you started to share with– you were already rocking and rolling with, you know, creating products and brands and all of this stuff, but then everybody was stuck because you didn’t have the banking solution. Now that you are online with Quivverpay, you’re taking on customers, you’re working with folks to make sure that they can continue to serve their customers directly. Talk to me about the people who benefit most from your solution, who are the ideal folks that you want to be working with that you can really give them the highest level of service and solution to

Ideal Clients for Quivverpay

Steven Anderson: a great question. So I think if I picked an avatar and said this is the ideal customer for Quivverpay, it’s somebody who’s got some business experience. Most of the processors and payment solutions to the industry that are live, there are very few that are predictable and solid and affordable. That’s the other thing is they’re just– 

Most of the processors and payment solutions to the industry that are live, there are very few that are predictable and solid and affordable. - Steven Anderson Click To Tweet

Sonia Gomez: there’s a lot of talk out there. 

Steven Anderson: It’s ridiculous, honestly but most of the solutions, it’s a cookie, it’s a chicken and the egg situation because they want you to have processing history in CBD or in cannabis, but they don’t want to bake you. So how are you going to have a process? Right? We’re still primarily a cash business. That’s right. So even here at MJ Biz Con is crazy. When I went and paid for my registration, my little badge. It was weird to actually see like, the credit card Booth was a smaller number of terminals registration than people paying cash.

 It just occurred to me as though cast business so so I think the perfect ideal customer is someone who has business experience. They may not be in the CBD space, but they’ve maybe been in e-commerce. They’ve had other brick and mortar businesses. So they have some kind of banking history in their confidence that we can use that as a backdrop. 

And if they don’t have any of that, companies that have owners that have decent credit, maybe they don’t have any processing history, but we can lean on their credit. Our goal is to try to get businesses online quickly and give the processing bandwidth just as high as we can get it without requiring a reserve account, a cash reserve account and not having to pull a percentage of their processing office reserved as an installation for our day. 

So that’s the ideal customer, can we get other customers on board, you bet. But there might be other requirements, might cost them a little more on the process. You might have reserves. You might have 72-hour holes instead of next-day settlement. But there’s a solution out there for everybody. It’s not a cookie-cutter solution. pressive Tony bespoke It’s a unique, customized solution that we bring in. We have lots of banking partners, lots of tech solutions, lots of gateways we can integrate with and we try to look at every customer uniquely. That doesn’t make it very scalable. You know, it’s harder to do this. But the customers that are on board have a solid dependable solution taking co scampered

Sonia Gomez: I really like that and that one of the things that really sets you guys apart that and you know for Those of you guys were in the industry, you know that there’s 10,432 brokers who have approached you probably during this event alone, who have the solution for your banking and processing, but who you can trust is a huge factor number one, number two, how many of you guys have been burned by people who are giving you unrealistic timeframes and setting unrealistic expectations? 

And then finally, when you go to get signed up, linked up, how long does that solution actually in place? I can’t tell you in my let’s see, between James and I, we’ve been in the cannabis and hemp space for 35 years. There’s nothing that I have not heard. No, very seldom that I find people who have a long history in the areas or solutions that they are offering. And there are a lot of people who are just switching their LinkedIn profiles to serve the industry in the last 12 months. 

Now the thing that is unique about your solution and is the fact that you guys are offering people who have really uniquely challenging situations, a solution. And as we see our industry evolve here, certainly with the physical product space, we want to advance the way that we’re paying our affiliates. We want to advance the way that we’re just, you know, distributing, we want to attract the ideal partners. 

And some people are even moving into that network model, that network marketing model, or MLM model. And you have actually been you’re serving folks who are both CBD and MLM or network marketing companies, which is a double whammy on the risk factor, but you’re successfully onboarding and working with them and giving them banking solutions. Talk to me a little bit about those advanced challenging situations that may be having trouble finding a home right now. 

Challenging Situations That They’re Having Trouble Finding Solutions Right Now

Steven Anderson: Yeah, great question. And again, this is about the entrepreneur, we, the entrepreneur designs, their own business, we’re not in the business of telling you how to do their business, right. So they come up with solution and they want to use network marketing or MLM or they want to distributor nationally, or they just want to be online only, there are certain states that they only want to focus on whatever that thing is that they, they’re more about flower and vaping versus topicals and adjustable. It’s up to them, it’s their business. 

And our job is to create a solution, understand their business and bringing on board. So for example, we actually just lit up an account very recently. That’s a network marketing company that had three or four different solutions that they’re running simultaneously. Summer for their protective rate on some of their accounts was six and a half to set our 6.95% up to 9.95%

Sonia Gomez: Oh my gosh

Steven Anderson: I mean, you’re effectively reducing probably the net margin of your business by half. Most businesses were that 20 25% net margin wage after Cost of Goods cost of sales objects. So that’s not doable. I mean, you can’t run a business with that kind of cash flow. If you’re going to scaling, scaling businesses requires lots of cash. Yeah, so we took that company ran through a matrix of trying to figure out the right solution. They’re up and running now, they’re seven figures a month. They’re scaling of the somewhere [inaudible] for four and a half million dollars a month. At the end of February. They’re exponentially growing. Their effective rate is 395. 

Sonia Gomez: Amazing

Steven Anderson: no cash reserves, their daily settlements are getting their money the next business day. And we’re monitoring their chargeback rates we’re really keeping a high focus on the risk of making but they’re up and running and they’re running their business very well. We’ve worked with as we buy a manufacturer couple their skews. So we understand what the [inaudible] need to look like. requirements are for them to get the third party validated with the bags. They’re not selling something to say that they are selling. Yeah. 

So this is where the unique element is, is where we offer manufacturing, for some product fulfillment for a lot of the clients. We can at least even in the fulfillment center, we can provide that that transparency, the bank, a lot the banks to come in and audit the inventory, the actual that we’re not selling stuff that they shouldn’t be selling. And it is a very unique solution and probably one that other companies will try Duplicate because it makes enough sense. But we’re here first we’re getting it done. That’s just one example. There’s others, you got a publicly-traded company that’s on the NASDAQ doing 360 plus million a year. That’s it our banking solution. We have several startup companies. They’re literally just making their first sales. 

Sonia Gomez: Good job, guys. That’s so awesome. Making your first sales is exciting. 

The Exciting Part of His Job

Steven Anderson: It is it actually let me say this. Part of what makes this exciting for me is knowing that people are going to be distributing products to a customer that really needs. At the end of the day, that’s what this is all about. It’s about getting people who need the product because they have literal problems with their body that these products will help. And that really drives I got into space. [inaudible] Yeah, let me tell the story.

Merchant Processing Solutions in the Hemp

Sonia Gomez: Yeah, I do. And I’ll give some brief frames to it. Because, you know, we’re watching this sort of the third wave of entrepreneurs come into this industry right now. People who have stood on the sidelines, watched it happen, watched it grow. Maybe perhaps still had a little bit of skepticism because they weren’t certain or necessarily comfortable. 

But what is happening right now, and I have goosebumps just thinking about it is we are seeing that their family and their friends, people that they love and care about are experiencing some sort of transformation. And that is a huge motivating factor for you guys to switch the mind frame and bring your assets and your skill sets with this space, which is allowing us to create a more massive impact in this industry. 

So please do tell me the story because as my body is covered in goosebumps, I feel like this is such an incredible story for those of you guys who are tuning in and question your interest in this space.

A Heartbreaking Story That Propelled Steven to the Cannabis and Hemp Industry

Steven Anderson: Let me show a picture for those that are watching the video. If you can see this and we get it past life. That’s a PET scan of– guy I will get emotional [inaudible] My sister in law a year ago, about October of last year, 2018 wrote a post on Facebook getting sick of it she had cancer by the time they found it they didn’t even know what kind of cancer it was it’s everywhere as you can see that doesn’t even include her brain because right now.

Merchant Processing Solutions in the Hemp

PET Scan of Steven’s sister-in-law

The doctors sent her home died there on hospice care for two weeks they overnighted her a really intense protocol from a friend of mine that he had mentioned he did something with some hospital group that’s appeared thing I didn’t know anything about it but like hey will this help her pain and proper quality of life. He said yes, I think it will give it to me selfie, whatever. 

So I overnight into her Bakersfield. Her husband gave it to her she was on the couch in content, groaning just massive pain. She was done. And 14 or 15 days later, she’s at the mall. taking pictures, Christmas presents shopping with her daughter who she was a stranger. And they reconcile the relationship and she’s paying for you. She’s contributing. You should be dead. She was in the hospital literally two weeks earlier. 

I don’t know about wired body responded well that’s future research and we have a project that we’re working on called Project Valerie need after her to kind of figure this out. But long story short, the cancer markers go from like 153 to 25 over the course of the first book on the protocol, which is really an intense CBD to CBT yet ratio I continue to work tapatio 300 milligrams in each vial one cc a day and she was great. The doctors decided to put her back on chemo radiation because she was so healthy now. Her immune system responded so well was recorded after the cancers that she said you’re there. They said your health you got to be back with chemo radiation. And she was the same apparently pain free but chemo radiation killed her. She died this year back in June. You know, I don’t understand why the doctors did what they did. I bow that’s what a soapbox. I’ll leave that for another conversation. But that was the thing that propelled me into the industry. I said, Okay, I don’t care about all the other stuff. I don’t know what the FDA is gonna do that motivates me to do but I’m in Let’s get in. So we got in the manufacturing, we got into talking to farmers and talking processors, and we just had facilities and so we have a 40,000 square foot manufacturing facility for industrial hemp and 40,000 square foot 38,000 square foot building for packaging and compounding of finished goods we just opened today actually, it’s crazy. Today is the first day we’re operating fully at our new fulfillment warehouse another 52,000 square feet there to do fulfillment. We have several hundred brands we work with. So it’s a phenomenal space. And yes, there’s going to be lots of big money coming in. But I think if they come in for the right reasons, I’m all for it to come in just a big bloody. I mean, that’s the American way I suppose. But they caught me with a little passion do that I can get.

Sonia Gomez: Steven, thank you so much for sharing your story and for you know, bringing your skills your team, your mindset, and your incredible partner Jacob shout out to him as well. And I’m really honored to watch folks like yourself who have the capacity to solve real problems in this space. I welcome you with open arms to help us advance this conversation because we truly are a self governing industry, whether we’ve been doing this for, you know, 30 years and our generationally, the hills farmers and our families are fighting to keep our position in this space, all the way through to the folks who have safely made that transition into mainstream into the mainstream cannabis companies and industry. You know, this is exactly what we need as we are self governing people who can solve, have the capacity to solve real problems for us and allow us to advance so that we can in fact, transform more people’s lives. And unfortunately, unfortunately, it’s those little nuances that make it possible for medicine makers, to get to the medicine takers, 

Steven Anderson: you guys paid the price. You guys were in it a long time. Thank you. Thank you for this podcast. This podcast is going to help shape and educate the entrepreneurs in the industry. But also, you know, don’t think that government regulators aren’t the Need into these types of things and learning from it and realize there’s real people with good hearts who care about science and care about this and care about results. And they want to do right. I mean, that’s the key. 

So thank you guys and thanks for letting me be able to podcast. Of course they should go to give Quivverpay.com Yep, fill out the little let’s talk, whatever. I don’t know what it says today. But something about learn more. There’s a forum there just fill it out and one of our CSR back to you will have to get up. 

Sonia Gomez: Amazing for those of you guys who are tuning in from MJ biz. com Thank you so much for joining us here. Thank you for the incredible work you are doing in the industry and when you decide that it’s the right time for you to move into an effective solution that is pain free and totally sustainable for you and your business to grow. We are here to help you at Quivverpay go ahead and check them out at say your website one more time

Steven Anderson: Quivverpay it is to be quiver with two V’s

Sonia Gomez: check them out at Quivver.com we will be excited to see whoever paid Oh my god. I’ll tell you a funny story. Want to get off of here about quiver? Okay, quiver pay.com two v’s. I’m your hostess with the mostess Sonia Gomez and this is The Hemp Revolution broadcasting live at MJ Biz Con at 2019. We’ll see you guys on the next show guys.

Subscribe & Review The Hemp Revolution Podcast

Thanks for tuning into this week’s episode of The Hemp Revolution Podcast! If the information in our weekly conversations and interviews have helped you in your journey, please head over to iTunes, subscribe to the show, and leave us an honest review. Your reviews and feedback will not only help us continue to deliver great, helpful content, but it will also help us reach even more amazing folks just like you!