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.
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Accepting payments has never been easier

In-Store Payments
Tap to Pay (iPhone)
ATM/Kiosks
Online Payments
Blockchain, Crypto
Payment Hardware
Mobile Payments
Custom Ingtegration
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The risks associated with credit card payments in the cannabis sector
Navigating the cannabis industry can lead some to think that anything is permissible, including credit card processing. However, this seemingly safe option carries significant risks that could jeopardize your dispensary.
For instance, a dispensary might start accepting credit cards, seeing a spike in sales, only to later find their merchant account shut down. This could freeze all payments processed recently, as they might not have fully transferred yet.
Even in states where cannabis is legal, credit card companies view cannabis businesses as "high-risk" and have algorithms to flag related transactions. This means it's only a matter of time before your account gets flagged.
The fallout can be severe: not only could you lose recent revenue and your merchant account, but you may also be blacklisted from future credit card processing. Additionally, state authorities could investigate your regulatory compliance, leading to costly violations that might put your license at risk. In short, engaging in credit card processing could quickly push a dispensary out of business.
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, streaming, Content websites including webcam services, etc.

Specialty Businesses
Travel Agencies, Credit Repair, Collections, Telemedicine, Firearms, Tech Support, etc.

Types of High-Risk Payments
Traditional High-Risk Processing
(Touch/No Touch for Cannabis)
for CBD/Hemp, Gaming, Gambling, Collections, Debit Collecting, Adult Service, etc. Let's Talk
Blockchain & Digital Wallets
Point of Banking
PIN Debit
ACH Transfers
When choosing a high-risk payment platform, consider factors such as:
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The specific needs of your industry
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Pricing structure and fees
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Available payment methods and currencies
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Fraud prevention tools
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Customer support quality
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Integration capabilities
Consumers spend 30% more on average at dispensaries with alternative payment options to cash.
Blockchain & Digital Payments
Blockchain payments offer a promising solution for the cannabis industry, addressing several challenges faced by businesses in this sector. By leveraging blockchain technology, the cannabis industry can potentially overcome banking restrictions, improve transparency, and enhance overall operational efficiency.
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Digital Transactions. Blockchain technology enables cannabis companies to conduct digital transactions without relying on traditional banking systems. This is particularly beneficial as many federally licensed banks are prohibited from accepting marijuana money due to federal regulations.
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Cryptocurrency Payments. Cannabis businesses can accept cryptocurrency as an alternative payment option, reducing their reliance on cash-only transactions. This can lead to fewer theft crimes and improved safety for dispensaries.
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Transparent Record-Keeping. Blockchain provides a transparent, publicly accessible, and immutable ledger that contains records of every transaction. This allows for: Real-time notification of transactions, Automated remittance, Regulatory institutions to verify the legality of transactions in real-time.
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Supply Chain Tracking. Blockchain technology can be used to track cannabis products from seed to sale, ensuring transparency and accountability throughout the supply chain. This includes recording cultivation details, testing results, and distribution information.
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Reduced Transaction Fees. Blockchain payments typically have lower transaction fees compared to traditional digital banking methods, benefiting both buyers and sellers.
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Enhanced Security and Privacy. The technology provides an extra layer of data encryption, ensuring buyer privacy and preventing fraud. It also offers instant transactions and verifiable storage of data.
POS Payment Overlay
Ticketing & Events
Digital Storefronts
E-Commerce
Invoicing for the Digital Age
Smart Consignment
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.
​How it Works: Customer Enrollment
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Initial Setup: Customers need to enroll in the ACH payment system, usually through a mobile app provided by the dispensary or a third-party payment processor[1][4].
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Bank Information: During enrollment, customers provide their bank account details, including routing and account numbers[1][2].
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Verification: The system verifies the customer's bank account to ensure its validity and ability to process ACH transactions.​
How it Works: Transaction Process
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Initiation**: When making a purchase, the customer initiates the payment through the app or by scanning a QR code at the dispensary[5].
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Authorization**: The customer authorizes the transfer of funds from their bank account to the dispensary's account.
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Processing**: The transaction is processed through the ACH network, which facilitates the direct bank-to-bank transfer.
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Settlement**: Funds typically settle within 1-2 business days, improving cash flow for dispensaries[1].

​Benefits for Cannabis Businesses
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Compliance: ACH payments are fully compliant with state and federal cannabis regulations, unlike traditional debit and credit card payments.
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Security: The ACH network is highly regulated, offering robust fraud protections and security measures.
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Cost-Effective: ACH transactions typically have lower fees compared to other payment methods.
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Flexibility: Customers can pay online (pre-payment) or in-store using payment links or QR codes.
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Increased Sales: Dispensaries implementing cashless payments often see an average increase of 20% in order value.
Point of Sale (POS) Integration​
For a seamless experience, dispensaries often integrate their ACH payment solution with their POS system. This integration allows for:
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Real-time data syncing
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Automated checkout process
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Reduced manual data entry
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Direct fund transfer at the point of sale
PIN Debit
PIN debit for high-risk businesses operates similarly to standard debit transactions but with some key differences:
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Transaction Process: Customers swipe or insert their debit card and enter their PIN, just like a normal debit purchase1.
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Additional Fee: An extra fee (e.g., $3.00) is typically added to the transaction amount1.
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Hardware Requirements: Businesses need specific hardware, such as a terminal and PIN pad bundle1.
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Direct Bank Transfer: Funds are transferred directly from the customer's bank account to the merchant's account, bypassing credit card networks.
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Lower Interchange Rates: PIN debit transactions often have lower interchange rates due to the Durbin Amendment, which caps these fees.
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Network Routing: Transactions are routed through PIN debit networks rather than credit card networks like Visa or Mastercard.

POTENTIAL RISKS FOR USING PIN DEBIT
However, for high-risk industries like cannabis, PIN debit carries significant risks:
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Compliance Issues: Major card networks prohibit cannabis transactions, making PIN debit potentially non-compliant2.
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Transaction Misclassification: Processors may misclassify transactions to avoid detection, which is not transparent or sustainable.
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Higher Fees: Some processors charge excessive fees, significantly higher than standard retail rates.
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Potential Shutdown: There's a risk of sudden service termination if the processor is discovered facilitating prohibited transactions.
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.
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How POB processing works
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The customer provides their payment details at the POB terminal
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The POB terminal processes the transaction
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The POB terminal charges a small convenience fee to the cardholder
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The POB terminal issues a receipt to the customer and the merchant
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Benefits of POB processing
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Reduced fees
POB processing can reduce transaction fees compared to traditional credit card processing
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Cashless experience
POB machines don't dispense cash, so customers can pay for products or services without cash
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Security
POB terminals often only allow PIN-based transactions, which can provide security for merchants