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Are you ready to accept both cash and credit card payments at your dispensary? That’s perfect! Providing customers with multiple cashless payment solutions, such as Mastercard, Visa, and others, is one great solution to attract more people to your business. The reports show that clients tend to spend around 30% more when merchants allow them to pay their bills with plastic. As a result, you need to offer varying card payment options to customers to increase your sales at your dispensary.
Credit card processing technology, also called POB (Point of Banking) and cashless ATM, enables mobile delivery services and dispensaries to accept online payments. This system allows consumers to use their credit cards to withdraw money from their bank accounts to clear their bills at a dispensary. From the perspective of customers, dispensary credit card processing feels like a routine shopping transaction. This process benefits the dispensary as the merchant receives his payments directly into his account without any disturbance. Credit card payments also lower the rate of human errors and make sure the numbers are correct at the end of every transfer.
With the right dispensary credit card processing, each merchant has the choice of setting a cash discount that can lower the acceptance expenses. This cash discount has eliminated the cost that businesses have to pay to accept credit card payments. Overall, accepting credit card payments does not have to break the bank of dispensary owners. Therefore, make sure to set a method that enables you to increase your overall revenue rate with a minimal or no acceptance cost.
When it comes to accepting credit card payments, merchants need to choose the right system or software to accept electronic payments. In this case, Merchant ePay is the best option. This system can help dispensaries process credit cards with a completely FDIC (Federal Deposit Insurance Corporation) insured platform. It enables merchants to accept all major credit cards and features, including surcharges. Here are some top benefits of dispensary credit card processing for merchants with Merchant ePay:
Until now, merchants could not accept credit cards from their clients at dispensaries for marijuana or cannabis purchases. Even with many states legalizing cannabis, cash payments have been the only option for people to pay for their shopping at dispensaries. With a dispensary credit card processing from Merchant ePay, merchants can accept all major credit cards from top-rated credit card service providers, including American Express, Mastercard, or Visa for marijuana payment. Overall, Merchant ePay has made it easy for cannabis vendors to accept credit cards to process their business transactions.
When customers pay for cannabis purchases with their credit cards, it will leave merchants with much less cash in their stores. It automatically reduces the risk that hard money brings to merchants, such as employee theft and others. That means you can dramatically lower the theft risk by allowing credit card transactions at your dispensary.
Another benefit of the dispensary credit card processing solution is that you don’t have to spend money on your cash security. Merchants do not need to hire truck drivers with armed guards to protect their money while shifting it from one place to another, for instance, from their store to banks and vice-versa. In addition, as there’s no cash, there’s no need to take help from armed truck drivers.
Just because you run a dispensary does not mean that merchants have to process credit card transactions overseas. With the Merchant ePay solution, you can process your transactions and keep your funds in your US bank account. It also gives you complete peace of mind with all your payment processing activities. Also, the money is held in FDIC insured banks. Dispensary owners do not have to worry about large piles of cash or any overseas bank account to run or build their businesses.
It’s clear from the information in this post that credit card dispensary processing has made it way easier for marijuana vendors to process their business payments. All you need is the right software, like Merchant ePay. For more details on how to incorporate into this system, reach out to the team now. They will let you know how this system can help you make your transactions seamless. All in all, allowing your customers to pay with their credit cards can help you attract more customers to your business, leading to increased revenue.
Besides, Merchant ePay is an ideal solution for almost all cannabis merchants, except for vendors in states where marijuana is still not approved or illegal. It is applicable only in states where cannabis is legal to sell and purchase. To know more about the Merchant ePay dispensary credit card processing system, feel free to talk to the team.
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.
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.
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.
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.
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.
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.
Being non-compliant can do significant damage to the reputation of any brand. On top of that, this damage is irreversible. As a general rule, all businesses that process credit card details must comply with the Payment Card Industry Data Security Standard (PCI – DSS). Not following PCI compliance can cost your business thousands of dollars.
In this post, you will come to know the adverse consequences of PCI non-compliance. So let’s take a quick look.
Even businesses in compliance with the PCI-DSS security standard can face data breaches. If your firm has suffered an information breach where sensitive card details of clients have been endangered, merchants can expect multiple penalties, such as:
PCI non-compliance can also lead to penalties from $5,000 to $100,000 every month by credit card processors. The amount depends on client volume, transaction volume, the PCI-DSS level, and several other factors. All penalties that payment processors or financial institutes suffer due to non-compliance get transferred to the business in guilt, affecting the relationship between the company and the bank.
Legal action is a possible outcome if the details of bank cardholders get breached. For instance, in 2007, TJX Cos. Inc. had to pay around $40.9 million in a settlement with the bank and Visa Inc. for a massive breach of their clients’ card data. This was because of the PCI non-compliance.
Loss in business revenue is another negative impact of not following PCI compliance. A strong percussion on the reputation of your brand can drastically lower your overall income. This happens because of the loss of customers who go away from your business for security breaches.
If your business does not comply with PCI security standards, you have to compensate your customers with credit card monitoring and identity theft insurance. And it will be expensive for you.
PCI non-compliance can also put your business reputation at risk. Putting the confidential information (credit card details) of your customers at risk not just results in elevated costs but also leads to irreversible damage to your company’s reputation due to security mistrust. Once your clients’ security has been endangered, it becomes hard for consumers to start trusting you again. Unfortunately, they prefer choosing your competitors over you.
If your business operates with a large customer volume, the Federal Trade Commission (FTC) can consider performing frequent audits to ensure you comply with PCI-DSS. The FTC analyzes companies that do not comply with the PCI security standard. In addition to applying strict regulations, the Federal Trade Commission can also penalize your business for non-compliance. Complying with security standards for optimizing bank cards is critical to both companies as well as customers.
However, the expenses linked to the PCI-DSS standard are quite elevated for small organizations, making them operate with credit cardholders in non-compliance. Though it’s easy to fall into this temptation, the consequences can be a little destructive for your company.
Every company is liable for their PCI compliance. Businesses that process card payments must have a data security assessment. It is always a perfect deal to invest some money in the internal security of your business. To always be PCI DSS compliant, your company requires to put in place proper internal controls on your processes and systems.
Becoming and optimizing a PCI-compliant company can be costly. The expenses vary from one business to another based on its size, type, and compliance level.
Level 1: You can expect costs up to $50,000 based on your business security systems.
Lever 2: Annual cost for level 2 businesses lies somewhere between $10,000 and $50,000.
Lever 3: The annual security cost is around $1,200 and can go up from there as per your business size.
Level 4: For these businesses, the cost could be $60 a month.
As discussed, not following PCI compliance can lead your business to a significant loss. Fortunately, there’s a solution to this problem. MerchantePay is a platform that can help you with online payments. This payment system provides businesses with a smooth, hassle-free payment experience in compliance with the PCI security standards. It will enable you to store and manage your customers’ bank details in a secure environment. For more information, feel free to talk to the professional team of MerchantePay.
Being a merchant, you may know that you have to pay an fee every time a consumer uses a credit card to pay his bills. But, no worries! There’s a solution for merchants to avoid these credit card processing charges, i.e., zero fee processing.
The data shows in the US alone; merchants pay around $80 billion every year to credit card service providers, such as MasterCard and Visa, just in credit card processing fees. However, by incorporating a zero fee processing system into your business transactions, vendors do not have to pay a single penny as fees. After years of legal battle, courts have decided to go with business owners to make it happen.
Nowadays, businesses in a few states that accept credit card payments may save some money, leading to increased revenue. This is because the zero fee processing, also called surcharging, is not enabled in all but a few states. But experts say that it will likely be legal across the US by 2020.
In this post, we will talk about zero fee processing in detail. So let’s start with the basics.
Also known as No Cost Processing, Zero Fee Processing is a system in which a credit card processing fee is automatically passed to a consumer. That means your customers have to pay those charges instead of you. Passing these credit card processing expenses to consumers is called surcharging. Under this, when a customer swipes his credit card to pay for his purchases, he gets a notification about the credit card processing fee. This notification gives them the option to go with that extra fee or pick a different payment form. With this, you get 0% of the transaction fee and 100% of the sale.
Several credit card companies in the market provide “zero fee” processing to get around interchange charges and attract merchants from different industries to use their services. As mentioned above, your customers will have to pay these charges, which might adversely impact your business sales and customer satisfaction. But, before you sign up for any of these “zero-fee” processing programs, it is essential to understand them wisely.
The fee varies from one processor to another but cannot be over 4%. Do not forget that these charges will appear on the purchase receipt, and your customers can clearly see them. There are chances that higher credit card processing fees on the bill may result in a decreased sales rate.
As discussed, surcharging allows businesses to pass the fees associated with dispensary credit card processing to customers instead of paying them on their own. The benefit to merchants is a reduction in expenses related to processing credit cards. As per reports, many industries, including healthcare, gas stations, non-profits, and cell phone carriers, have succeeded with zero fee processing setup. They also continue to provide their consumers with the option to choose a convenient card payment service if they don’t want to pay extra credit card processing charges.
In addition, remember that you are not allowed to pass the fees linked to debit card transactions to your customers. But if your business processes a considerable number of credit card transactions every week, you can consider how to lower or eliminate these additional charges.
Yes, it is possible to lower your dispensary credit card processing fees. You may reduce credit card processing charges without passing them on to your consumers. Instead of transferring fees to your customers, you can apply minimum purchasing limits for credit card usage. Enabling credit card payments above $10 has the benefit of encouraging clients to spend more. This method not only increases your sales rate but also allows you to save money by neglecting card processing fees on low-value, low-margin transactions.
There’s no doubt that credit card processing is critical for any business, but remember, it should not hurt your bottom line. With the right dispensary credit card processing solution, merchants will not have to worry about credit card payments’ processing fees and losing customers.
Besides, it is recommended to closely talk to your credit card service provider to determine whether they provide zero fee processing or not. Overall, pick your credit card processor after proper analysis to take your business to the next level.
For several businesses (small and medium-sized), cash seems a convenient method to accept payments. It is safe from hackers, doesn’t need any specialized hardware, and also there are no extra charges linked with cash acceptance. Many business owners encourage cash payments over card payments, as it appears to be the most straightforward and cheaper option.
However, most merchants are not aware of the hidden charges that come with accepting cash, which easily overrides the benefits of cash payments.
Every business is structured differently, but the following cash costs apply to all companies. Let’s take a look at them:
As per reports, retail businesses in the US lose around $40 billion each year due to cash theft alone. Though cash may not include processing charges, it can be stolen easily. Employee theft has been estimated to be liable for losses of 4% of sales in restaurants, leading to a significant cash loss for the industry. On the other hand, credit or debit card data is relatively harder to steal; and the right payment processor can deliver security solutions that make client data nearly impossible to hack.
When your customers pay their bills by check, you cannot determine whether it is going to bounce or not. It is quite challenging to track and pinpoint this kind of fraud. In such cases, you cannot do anything. If your money is gone, it’s gone.
Cash payments require merchants or store managers to collect and calculate the cash at the end of the day. This takes up the valuable time of upper-level management. With digital transactions, money is automatically counted and deposited into your business bank account. There’s no manual counting, no trips to the bank to deposit the money, and little or no room for mistakes.
When it comes to cash payments, the person at the counter takes a while to calculate, accept money, and give change. All these together can lead you to lose your customers. As per Box reports, 41% of consumers would give up their purchase because of long checkout lines. Businesses run the risk of losing around 50% of their sales just to avoid a little percentage of credit or debit card processing charges.
In today’s market, clients value their time more than ever. Long wait time deters customers from visiting your shop for repeat purchases. As per the research, around 81% of people actively ignore shopping from stores where they find too long waiting lines. Also, 74% of the clients surveyed stated that they would prefer to purchase from a competitor instead.
Accounting becomes way simpler when there are precise details of each purchase with the customer name, date, and total amount. But with cash payments, there are no records of transactions. Only online payments offer detailed reports of each payment, making accounting low-cost and more straightforward since it needs less manual time. Also, digital payments eradicate the guesswork from accounting and enable seamless business transaction records.
On top of the extra time spent on accounting and reporting, most business owners forget about the cost of depositing regular cash and cheques at banks or financial institutes. Visiting the bank to deposit your funds needs time and money (petrol, parking charges, etc.). Considering these costs, you may save around $25 or more from each visit by allowing online payments. Also, sometimes financial institutes can charge some amount for your deposits, and it can take several business days for your money to be available in your account.
A quick and intuitive checkout experience that enables clients to pay through their preferred payment method is essential to establish long-standing loyalty and ensure 100% customer satisfaction. Being a business owner, if you’re planning to boost your business operations, providing a convenient payment acceptance option is critical. Flexible and versatile payment solutions can bring improved sales, increased market share, and greater business loyalty.
Overall, grow your business by accessing more and more clients and enabling them to pay the way they want. You can speed up your checkout lines with mobile and swipe payments, eliminating the process of accepting hard money. This way, you can save your money and time by eliminating the need to go to the bank to deposit your funds in your account. On the whole, choose the right payment method and let your customers pay your bills quickly and conveniently.
In today’s business world, all business owners want to accept credit cards to process payments. While looking around for the right credit card terminal, you need to consider several factors, including reliability, ease of use, price, and customer service. But, before you directly jump on these elements, you should not overlook the most critical factor, i.e., the best method for businesses to accept credit cards.
When it comes to the right way to accept credit cards, there are several methods to choose from, such as POS System, physical terminal, virtual (web based) terminal, and cash register with a terminal add-on. Now, the question is – which one is the best?
A credit card terminal is not the perfect fit for all businesses. If you own a brick-and-mortar store and your consumers come to you, then using a credit card terminal can probably be the right option for your business. But what if you have more than one rep? What if you’re in the service trade and spend maximum time at the location of customers? In this case, a virtual terminal is the best choice.
A virtual terminal is the best way to accept credit cards due to the flexibility it delivers. With the right payment system in your hands, you can collect client details and have the ability to process recurring billing. Also, virtual terminals never go out of date, eliminating the need to change hardware once every couple of years.
A virtual CC terminal is an excellent solution for several businesses operating today. Offering versatility to almost every industry and service-based company, virtual CC processing enables merchants to process transactions without a physical card reader. Overall, setting up a virtual credit card processing terminal can make it easy for business owners to manage their transactions efficiently. Here are some benefits of using a virtual CC terminal for your business:
Virtual CC terminals are free of maintenance. You can not break or drop a virtual terminal, resulting in improved life expectancy. Also, most of the virtual terminals update automatically overnight, safeguarding you from unexpected downtime.
If you use the right payment processor, a virtual terminal costs you nothing as there’s no need for using the equipment. This can save you lots of money, which you can use to perform other business-related operations.
Many virtual terminals have technology to get the best rate possible for each credit card type.
With a virtual CC processing terminal, you can fully control payment processes from start to end by having round the clock access to all records. With a virtual terminal, merchants can balance their budget anytime, anywhere, without any hassle. It also allows you to access your payment records easily using your smartphone or computer. Moreover, 24/7 access to records can boost your business efficiency immediately.
Virtual terminal processing is flexible and cost-efficient enough to keep your business running effectively. Being a business owner, you understand the frustration of chasing customers to clear invoices. A virtual CC terminal ensures easy and fast payments, leading to smooth cash flow.
The satisfaction of customers is all that matters in the end. Most people feel uncomfortable when their card details are written down by merchants while processing payments, leading them not to visit that specific merchant again. The ability to swipe cards for payments can provide your customers with peace of mind, ensuring secure transactions.
This is how virtual CC processing works – a complete process from start to end:
Receiving your business payments is that simple with a virtual terminal processing. When it comes to using a virtual terminal effectively, all you need is access to a phone, tablet, or laptop. Also, you can process transactions any time from anywhere.
With several ways to accept credit cards, make sure you pick the right method for your business. A virtual terminal not just allows you to run your business smoothly but also saves you lots of money in the long run, leaving extra cash in your pocket. Choosing the right virtual processing terminal can enable businesses to process mobile, credit cards, ACH, phone, mailed, and recurring payments quickly and effectively.
If you accept plastic for payments, you may know that credit card processors charge an fee for all purchases processed by credit cards. Now the question is – what is this credit card surcharge fee? Why do some businesses apply these charges and some don’t? Here’s what you need to know about credit card surcharges.
Credit card surcharges are extra charges passed onto consumers who use credit cards to process transactions. Many clients and even merchants have no idea that they are charged with credit card surcharge fees.
Several customers get surprised after seeing their purchase bill when they notice that they are paying more than the market rate for the products they are buying. It is confusing for them to understand why their paying rates are not the same as the displayed prices.
Due to the lack of knowledge related to credit card surcharge fees, several business owners and clients wonder if surcharging is even legitimate.
Applying credit card surcharges is legal in most states across the US. There are a few states where it is still illegal to charge credit card processing fees. These states include Kansas, Oklahoma, Maine, Colorado, Connecticut, and Massachusetts.
However, there are strict guidelines that all merchants who accept credit card surcharges need to follow. For example, the surcharge fee cannot exceed 4% of the sales total. Also a company can not just apply a surcharge fee as they want during checkouts to make profits. The amount they charge should be the same as taken by their processor, i.e., a maximum of 4 percent.
Some merchants charge surcharges on credit card purchases to balance the processing fee that credit card processors charge them for accepting credit cards. To cover this additional fee, businesses pass these charges to customers while processing payments through their credit cards. This is how merchants offset the charge credit card processors charge them. Companies do not just apply surcharges to make extra money on credit card payments. It is the amount that a store has to pay to accept transactions from credit cards.
Debit cards or prepaid cards carry a processing fee as well, but the fee is minimal. multiple transactions than credit cards, and there are still surcharges on debit card payments. For instance, a Visa debit card – but they are rarer than credit card processing fees. On the other hand, high-reward credit cards have higher processing charges because someone has to pay for the perks that come with credit cards.
All businesses that accept credit card payments are charged a fee as it is how the issuing banks, credit card brands, and the processors make money. They take a percentage of all credit card payments they process from the specific business that accepts credit card payments. This is how credit card processors make money. They continue to charge a percentage on every single credit card purchase for as long as that company is processing with them.
If you want to lower these credit card surcharges, it is suggested to contact the right credit card processor. Also, make sure the credit card brand or processor you choose applies non-existent or lower charges.
Adding a cash discount program to your payment process is a perfect alternative to avoid paying credit card surcharges. The best part is that cash discount programs are legal in all states. They are the best pick for businesses, but most merchants are not using them, and the reason behind this is that companies are not aware of this option. Adding surcharge fees often leads to misunderstandings and complaints between businesses and customers.
Whether you’re using a debit card or credit card to make payments, if the business you’re buying from apply surcharges, be ready to pay that extra charge or consider paying via cash instead. If you’re a merchant trying to decide between a credit card surcharge program or a cash discount, base your top pick around the total amount of your credit card purchases you conduct in your business every month.
Hopefully, the information mentioned in this post will help you understand the credit card surcharges’ ins and outs.
If you’re looking for new ideas to sell your CBD products online, that means you already know about cannabidiol and their popularity in the wellness and health world. Many online companies are introducing CBD into their eCommerce shops. As per the Forbes report, the industry will reach $16 billion in revenue by 2025, and there is no doubt about it.
After the declaration of the 2018 Farm Bill, several eCommerce businesses are looking for payment gateways that enable CBD merchant processing. The demand of people for CBP products is increasing, and business owners are stocking up their offline and online stores with different CBD products to meet customers’ needs.
As this is a high-risk industry, you need to understand what is required to legally process CBD business payments.
CBD was discovered around 80 years ago, and there are still so many things we need to know about this chemical compound. CBD is found naturally in both hemp and marijuana plants. But, a lot of CBD products available in the market are created from hemp plants. With the increasing demand for CBD products among people, it is quite evident that businesses could make a significant profit by selling this compound.
The high risk of CBD and the fact that marijuana will remain illegal in the industry make accepting online payments a little restrictive for merchants. CBD products derived from marijuana are not legal at the federal level. Just like hemp, marijuana or cannabis is a part of the cannabis family. One primary difference between both plants is that marijuana produces over 0.3% THC, which is the plant’s psychoactive element.
The confusion between marijuana and hemp has caused a controversy among hemp product providers who are struggling to find processing solutions to accept online payments for selling CBD products.
Even if you own a business specializing in selling hemp-derived CBD products, you still need to invest in the right CBD payment processor designed to optimize high-risk payments.
As per 2018 reports, the sales rate of CBD products in the United States ranged from $600 million to $2 billion, and it is expected to cross $22 billion by 2022. That means a significant number of eCommerce business owners are looking to invest in a CBD payment processor. But, here are a few points you need to look into before opening a CBD seller account.
The first step you need to ensure is that the CBD payment processor you are choosing can deal with high-risk transfers. The reason is that the industry is highly prone to payment frauds and chargebacks, and there are minimal CBD payment processing service providers who are ready to take or handle risks linked to such transactions. To avoid hefty fines later, make sure your potential CBD payment processor is all set to deal with high-risk transactions.
Another point is that – never go with a company that charges an immense amount for their services. There are payment processing providers who charge a registration fee, whereas some don’t. You also need to consider other charges, including statement fees, terminal fees, non-compliance fees, compliance fees, and chargebacks. Keep all these points in your mind, look for different options, and pick the one you find reasonable for you.
When it comes to handling online and offline CBD product transactions, you should be prepared for every worst scenario. While finalizing your payment gateway, ask your service provider how they manage payment disputes and prevent their clients from frauds. In this case, customer support is something you must look for. Ensure the CBD payment processing you are hiring is offering 24/7 customer support to help you deal with payment problems whenever they appear.
Every CBD payment processor will ask you to sign a contract, and the deals and fees of every business are different. It would be best if you take your time to pick one that suits your company the best. It is also suggested to stay away from companies that focus on establishing long-term partnerships only, especially when they don’t have testimonials to prove their claims.
As we all know, competition is very tough in the CBD field. So, if you want to boost your business profit and customer retention rate, you need to be at the top of your game. The right CBD payment service processor can provide you with customized payment solutions that fit your business the best. They can make transactions smooth by eliminating the hassles linked to accounting, administrative tasks, and business upkeep, frauds, chargebacks, and more. Overall, choose your payment processor wisely by keeping your business goals in your mind.
In the cannabis industry, access to cannabis banking services seems impossible. For suppliers, vendors, retailers, or anyone else who deals with this business, bank options are relatively minimal. Do you know the reason behind this?
The reason behind this is The Controlled Substances Act. This bill was passed in 1970, which stated that marijuana or cannabis is a Schedule 1 drug. That means cannabis is placed alongside other drugs such as LSD, meth, and heroin. Consequently, the sale of marijuana or cannabis products is illegal under federal law. This creates a barrier for dispensaries or stores to make a legal marijuana or cannabis banking process.
Moreover, financial institutions and credit unions are hesitant to offer banking services. This is because of the position of cannabis-related businesses in a legal “gray area.”
The legal gray area was not always a problem. It was not until 2013 when the Departments of Justice released a memorandum called the Cole Memos. This memorandum declared that the federal government would not impose any ban on the sale of cannabis products. Instead, it trusted the states to implement their own regulatory systems for legal marijuana.
However, five years later, the US government canceled Cole Memos. This created doubts about how law enforcement would react to the cannabis industry.
However, just five years later, the government rescinded the Cole Memos. This left uncertainty around how law enforcement would respond to the marijuana industry. As a result, criminal prosecutions were applied to banks that collaborated with cannabis-related businesses, even stores with state-issued licenses.
For cannabis dispensaries or stores that get help from financial institutions or banks, compliance remains a huge problem. Even with a bank account, there are several regulatory and legal boundaries to pass through. For instance, both cannabis businesses and banks must ensure that all sales are permitted to avoid any issue later.
Being associated with the marijuana business is expensive for all parties involved. Cannabis businesses have to pay higher merchant account charges, and financial organizations must have to use their assets to put together all the data. The burden of additional expenses for merchants and banks is shifting to consumers, making cannabis purchases at stores complicated and more expensive.
Besides the associated costs, cannabis banking procedures are not efficient because banks or financial institutions still risk litigation. The marijuana industry doesn’t function differently from the rest of the economy. They communicate like any other offline business; pay utilities, lease space, and do business with transporters, vendors, and suppliers. The process is similar to any other company in the market.
Also, the increased liability makes banks anxious to collaborate with cannabis businesses, leaving them to cover their costs themselves. Consequently, most marijuana dispensaries are not getting the banks’ support and operating as a cash business, which is a dangerous and expensive choice.
The lack of cannabis banking choices has brought frustrations among merchants as well as banks. For a cannabis business owner, this is undoubtedly expensive. They need to improve their security to protect business cash. Also, managing regular expenses, such as rent, tax, and payroll, is challenging with money alone. On the other hand, financial institutions and banks have to fulfill many responsibilities to ensure no federal law violation.
As a result, banks are avoiding offering cannabis baking services to cannabis-related businesses. Overall, until the legalization of marijuana or cannabis banking, communities, banks, financial institutions, and companies have to pay the price of inaction, which affects all aspects of the marijuana industry.
Though it seems impossible, if cannabis banking becomes legal, it would be ideal for both banks and cannabis-related businesses. It will regulate easier, safer, and better business practices. Banks would deliver their services to more and more cannabis merchants without prosecution or any fear. The legalization of cannabis banking services would also help in combating illegal payments.
Also, with the reduction of additional charges (no security expenses and all), it’s predictable that cannabis businesses will make more profits. Also, the approval of cannabis banking for the marijuana industry would lead to a lower crime rate in communities.
The question is not whether or not marijuana or cannabis banking services can be legal in the community. It’s the financial sector overcoming the marijuana industry’s stereotype that seems to be a huge barrier that is holding back marijuana banking from improving beyond cash-only business.