High Risk, No Problem.
Cannabis, CBD, Nutraceuticals, Travel, Online guns and ammo, Tribal, Collections, IT support, online pharmacies, Payday loans, Online tobacco/Vape/E-Cigs, Financial services, Forex, the adult industry, among others. More and more industries are being classified as high-risk.
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83% of Americans between 30 and 49 years old own a credit card. Most consumers prefer card payments (either debit or credit) over cash, and only 10% make all their purchases with cash. It’s obvious why dispensary owners are desperate to accept cards.
Cannabis Payments >
Point of Banking, ACH, Pin Debt, Credit Cards, Blockchain, Crypto
CBD/Hemp Payments >
Delta Derived Products, Vapes, Pet Products, Supplements, Pain Relief, Hemp Oils, Skincare, Teas, etc.
Gaming Payments >
Credit Repair, Beauty & Fitness, Healthcare, etc.
Adult Content Payments >
Adult novelties, Toys, Books and Magazines
Videos, DVDs, and streaming, Content websites including webcam services, etc.
Specialty Businesses >
Travel Agencies, Credit Repair, Collections, Telemedicine, Firearms, Tech Support, etc.
Consumers spend 30% more on average at dispensaries with alternative payments options to cash.
No matter if you're selling in person online, or while on the move, our dependable, comprehensive payment solutions are here to support you!
We simplify the payment process for businesses and their customers, all while maintaining exceptional security and PCI compliance. Allow us to handle the details so you can concentrate on what you excel at!
Accepting payments has never been easier
In-Store Payments
Custom Ingtegration
Online Payments
ATM/Kiosks
Mobile Payments
Payment Hardware
Tap to Pay (iPhone)
Gift and Loyalty
The risks associated with credit card payments in the cannabis sector
We are currently navigating the uncharted territory of cannabis, which may lead some to think that anything is permissible. You might be considering credit card processing, a seemingly safe option that many endorse. While we don't want to incite unnecessary concern, it's crucial to understand the associated risks.
You may be seeking payment solutions, even temporary ones until federal legalization opens up more options, but using credit card processing at your dispensary could jeopardize your business, even in the short term.
Consider this common scenario: a dispensary begins accepting credit cards through conventional processing methods and sees a surge in sales. However, a few weeks later, they receive a notification—often an email or phone call—indicating that their merchant account has been shut down. This action can also freeze all credit card payments processed the previous day, as they haven't been fully transferred to the cannabis merchant account.
Despite cannabis being legal in many states, credit card companies still refuse to work with cannabis businesses or other industries deemed "high-risk." They have developed algorithms to flag transactions involving cannabis sales. While they may not identify you right away, it’s only a matter of time.
The consequences extend beyond losing the previous day's revenue and having your merchant account shut down; your account could be blacklisted. This could prevent you from accepting credit cards even when the industry evolves.
The risks of accepting credit cards aren't solely from the card companies; state authorities may also investigate your compliance with regulations. In some cases, both parties may take action. Missing income for just a few weeks can spell disaster for a fledgling company, and regulatory violations could lead to losing your license. In an instant, a dispensary could find itself out of business.
Point of banking (POB)
Point of banking, also known as a "cashless ATM," is a payment method that has become popular in the cannabis industry. It allows customers to access their bank accounts directly at the point of sale, similar to an ATM transaction. Customers typically pay in increments of $5, or the nearest dollar in some systems. If the transaction doesn't result in a round figure, the difference is provided in change, often leading to increased tips for the budtender. Customers also incur a convenience fee on top of the rounded total. Integrating this process with your point-of-sale system mimics a traditional debit card transaction for customers and simplifies the checkout experience for dispensaries. However, be cautious of non-integrated cannabis payment solutions, as they can lead to significant costs.
PIN Debt
Traditional PIN debit cards may appear to be a good option because they are similar to point of banking (both use a bank card). However, debit transactions run on a different payment network than point of banking. This payment network is the same one used for credit card processing, which is not suitable for cannabis transactions.
In other words, traditional debit card processing is not suitable for cannabis transactions.
With PIN debit, you can only spend the money available in your account. It's an immediate charge and covers the payment to the exact penny. Many people think that using a debit card is a compliant way to pay for marijuana products, but it comes with risks. Some merchant services have tried to disguise cannabis debit transactions as charges for items such as pet toys or purchases at nearby businesses. However, such scams do not go unnoticed and can lead to arrests and indictments.
ACH Transfers
This digital payment process enables transfers through ACH (Automated Clearing House), allowing money to move between banks without the need for checks, wire transfers, or cards. Businesses can promptly verify funds and receive direct transfers from customer accounts. However, accepting ACH payments may require third-party solutions, and integrating your POS system with the ACH payment solution can improve the customer experience.
Crypto Currency & Blockchain
The future is digital, right? Using crypto as a payment solution in your dispensary seems like a win. It's all digital, anonymous, and seemingly secure. Some have even said crypto could save the cannabis industry. It's true that the two concepts align quite well in theory. Cryptocurrencies could solve the banking and payments problems in cannabis. But the volatility and risk associated with cryptocurrency make it an unrealistic option for cannabis retailers.
Perhaps someday there will be a reliable, easy-to-use, and industry-wide cryptocurrency for cannabis. The truth is we’re still far from that reality. Only a handful of stores have gotten this tech up and running, and none are operating regular transactions through crypto.
Blockchain technology can offer an alternative solution for cannabis businesses to access banking and financial services without relying on traditional intermediaries. Blockchain-linked mobile phone applications could instantly verify legitimate material with QR code links to public strain data on Kannapedia.net. Cannabis breeders and cultivators can also use genetic sequencing to accurately fingerprint their varieties and publish their genetic data to the Dash blockchain.
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