Marijuana Payment Processing: Different Options to Pay Your Bills
The demand for marijuana is growing every day as more and more states are legalizing this psychoactive drug. Being a cannabis merchant, you may know that there are limited options for marijuana payment processing. The federal laws still consider this chemical compound illegal, even though several states have legalized the use of cannabis in some form or another. Consequently, cannabis sellers are operating their business in a financial grey area.
Without the legality of marijuana at the federal level, financial institutes or banks won’t provide their services to the cannabis industry. This is because they could face some charges for servicing marijuana businesses.
Also, you can say that recreational and medical marijuana enterprises are left without payment processors. This has led the growing cannabis industry to discover new methods to accept their payments from customers.
When it comes to marijuana payment processing methods, the cannabis industry has discovered several solutions. Each payment system comes with its own advantages and drawbacks. In this post, we have listed some payment processing methods. Let’s take a quick look at the list for details.
Marijuana Payment Processing with Credit Cards
For dispensary owners, accepting credit cards for processing business payments is the easiest option. Paying through credit cards is the preferred option among consumers. If you see statistics, you will come to know that around 70% of customers prefer card payments over cash. This makes it clear why dispensaries are so desperate to accept credit cards. But, the federal law is a significant barrier to accepting cards for processing marijuana payments.
As discussed above, the federal government does not consider the use of marijuana legal. This is obstructing banks or financial organizations from creating merchant accounts for dispensaries. That means credit card processors won’t work with marijuana businesses, and you cannot accept credit card payments. Overall, the federal laws on marijuana need to be changed drastically so that credit card processors can recognize the cannabis industry as a legal or valid business form.
Marijuana Payment Processing with Debit Cards
Some merchants use workarounds to accept debit cards to process payments from clients. These methods should work as per federal laws surrounding the marijuana field. Workarounds have built multiple interesting ways that cannabis merchants can use to accept debit cards. One approach is cashless ATM payments. Cashless ATMs work like standard ATMs, but they do not use cash.
Another option is purchasing vouchers instead of paying cash, and it can benefit you for several reasons. These advantages are no need to carry money, an instant deposit of funds into your bank account, and security. It also reduces the likelihood of fraudulent transactions, chargebacks and delivers peace of mind for customers and merchants.
But again, cashless ATMs also come with flaws, i.e., the setup fees. On top of that, consumers incur transaction charges every time they use this system. All these expenses together make workarounds a complicated marijuana payment processing solution.
Marijuana Payment Processing with Cryptocurrency
Another solution to marijuana banking is cryptocurrency. This method came into existence when cannabis merchants started searching for ways to accept mobile transactions. Cryptocurrencies reduce the number of cash payments by enabling online transactions. Anyone with a smartphone and stable internet connection can invest in cryptocurrency. This payment solution is usually safe but also includes drawbacks, like accessibility. This currency exists only online, and there’s no particular mobile application for the public.
Marijuana Payment Processing with Cash
Cash is another payment solution. Usually, money is a good option for companies, but for marijuana merchants, it is a nightmare. The illegality of marijuana by the federal government has made hard money a standard choice for states that legalized cannabis. But, cash as a marijuana payment method creates several challenges for merchants.
Accepting cash is quite expensive as you have to spend money on protection. Having cash at your dispensary also increases the chances of robbery. Also, other ordinary expenses with cash are rent, payroll, or taxes. Overall, cash is no longer an efficient payment processing solution for marijuana merchants.
Choose the Right Platform to Process Your Business Payments
The cannabis industry is looking for different payment methods to make payment processing hassle-free and quick for merchants and customers. These are some options you can consider looking into to clear your cannabis business payments. Also, if we compare, it is clear that accepting credit cards makes the best pick among other options.
Being a marijuana business owner, if you’re ready to accept cash as well as credit cards to receive your business payments, consider investing in Merchant ePay. With this payment processing solution, you can take all major card brands, including Visa, American Express, and Mastercard, to clear your business payments. Also, accepting debit or credit cards should not be challenging for marijuana vendors.
Moreover, with the marijuana merchant services of Merchant ePay, you do not need any alternative payment solutions for your customers to gain access to your medical or recreational cannabis. For more details, consider browsing Merchant ePay.