Cannabis and credit cards have not worked well for a long time. Mostly, it was due to operating in the grey market or due to banking regulations that prevented USA-based Cannabis businesses from using traditional banking services. The problem still exists in the industry even now halfway through 2022. The good news for Cannabis dispensaries is that there are working solutions to start taking card purchases today. If you are starting or currently running a medical or recreational dispensary, it’s time thoroughly explore your options for taking payments.
Cash Comes with Risks that Cards Eliminate
Best Cannabis Credit Card Processing
One major issue facing cannabis businesses for years was that they could only take cash sales. This was messy in more ways than one.
- Physical cash is quite filthy, with germs being handled by so many different people.
- Physical cash can be stolen. Many dispensaries ran into issues where the number of sales didn’t translate into the correct number of deposits. Meaning some of the cash “disappeared” and was stolen by employees or others.
- Physical cash must be physically stored at the dispensary and then physically deposited at the bank. This led to fraud and also the risk of being followed when leaving the dispensary with large envelopes of cash to deposit.
- People carry hard currency less and less.
The only real way to eliminate these risks to your business was by eliminating cash as a means for purchase. But, the problem was that banks in the USA are still unwilling to work with Cannabis-based businesses due to federal law. So, business owners were stuck taking cash despite the inherent risks in doing so. Now, the landscape has finally changed.
Canadian Cannabis Merchant Services Well Established, USA Following Suit
Canada paved the way in North America as the first country to completely legalize cannabis for both medical and recreational consumption. This opened Canadian businesses up to traditional Canadian banking services they could not previously utilize. The United States, always the one to be different, is slowly following its example. But the big difference is marijuana is still federally illegal being listed as a Class I narcotic, like cocaine or heroin.
It seems many more conservative and religious states continue to dish out harsh punishments for minor marijuana possession, most notably in communities of color. So the USA still has a long way to go as a nation when it comes to Cannabis legislation. There are some shining examples of states who have finally legalized Cannabis, most recently New York and Connecticut.
Finding the Best Cannabis Credit Card Processing
Something is usually better than nothing but not necessarily when it comes to Cannabis merchant services. You should be getting the same scope of services and pricing models for your dispensary as any other business. Direct deposit should be fast, per transaction fees and percentages should be industry standards, and no cash reserves should be required. Cannabis is no longer considered “high-risk”, so be sure you’re working with a qualified Cannabis Merchant Service provider who knows the industry in and out.
