The Cannabis industry is growing at a record pace. With medical and recreational sales legalized and the growth of interest in CBD exploding nationwide, many businesses are looking to take advantage of the boom. But the Cannabis industry has not always had an amicable relationship with the banking industry.
In the early days of legalization dispensaries, head shops, and marijuana accessory stores had to take cash exchange transactions. They could not legally run debit or credit card transactions because of the way in which banks looked at the cannabis industry, which despite legalization, was “high risk”.
This meant store owners who were selling completely legal goods were forced to accept solely cash transactions. They then had to make cash only deposits at their bank which can be very risk business. Leaving your place of work with a duffel bag full of money didn’t create the sense of “completely legal” that activists had been aiming for. Instead, banks unwillingness to allow Cannabis companies to accept credit and debit cards kept the perception of organized crime and cartels alive within the industry. Comp
Luckily, the banks have today come to their senses. The lucrative growth of the cannabis industry has forced their hand and agree with the Canadian government that Cannabis is a legal and viable product. So, what does this mean for your business? Can you accept credit and debit card purchases for things like marijuana, edibles, pipes, vapes, grinders, and the rest? The answer is yes, but there are a few caveats to choosing the right cannabis merchant service provider.
Experience in the Cannabis Industry
When working with a credit card processing company you should be looking at a few key items. Not every merchant service or bank is familiar with cannabis variety companies and can be unsuitable for your organization. Here are the most important factors to look at:
- They are a Canadian business and work with Canadian businesses
- Time in business within the Cannabis industry.
- Variety of clients they have worked with within the Cannabis industry.
- Understanding of the Cannabis industry and its intricacies
- Processing fees compared to other merchant services
- Time frame for direct deposits for your Cannabis based business
- Dedicated Agent for your account (when working with large companies this can be a huge problem)
- Knowledge of Cannabis banking / Cannabis Investment
- and more
Large scale credit card processing firms have a few key drawbacks in comparison to a dedicated independent merchant service provider. When you work with an agency who has thousands of clients, hundreds of employees, and no clue who you are; you get lost in the masses. Working with a dedicated merchant service provider who knows you, knows your business, understands the Cannabis industry, and understands Cannabis banking, makes a huge difference.
CBD & Marketing Troubles
When you have your CBD credit card processing sorted out, you’ll want to focus on marketing your business. There are some real issues to be aware of here though. Firstly, because of Health Canada’s determination that CBD cannot be marketed as a therapeutic or medicinal, you must be very careful how you market your CBD products.
Google will not allow cost per click ads and you cannot make health claims on your CBD ecommerce website as you would risk legal action from the Canadian government. You can still sell CBD, but you need to be aware of the restrictions as to its promotion. So be sure to keep this in mind and talk to your cbd credit card processing company to make sure you’re complying.
Take a look at our write up on all you need to know about selling CBD here, Want to Sell CBD Online? 5 Things You Need To Know
For the best in Cannabis Credit Card Processing, look no further than almost 2 decades in the field here at BrotherProcessing.com. We work directly with every one of our clients and have been involved with the Cannabis and CBD industries on all levels. Please call Stuart today for a consultation of how we can save you on your credit card processing today. 1-800-891-8965