Knowing when to change your business’s credit and debit card processing provider can be tricky. In the Cannabis industry, there are many different options to choose from, but because of the regulatory frameworks that must be complied with, working with the correct cannabis merchant service company isn’t as straightforward as it should be. There are many reasons why dispensaries may change who processes their card transactions. Let’s take a look at some of the common reasons dispensary owners change providers.
High Fees & Per Transaction Costs
Cannabis Merchant Services Provider
It “takes money to make money” is a common saying in business, and you have likely heard it before. You must “invest” in your business in several ways, including training, banking, stock management, shipping, and more. Also, one of those is working with a company that processes debit and credit card transactions so your business can offer more than cash-only sales. Whether you operate a physical store or are an online retailer, you’ll need a way for people to pay you outside of hard cash currency.
But some cannabis merchant service providers who will set you up with a debit card processing account have high per-transaction fees, poor rates on processing, and high costs for point-of-sale terminals. This should not be the case. Cannabis businesses, with legalization throughout Canada and many states in the USA, should be viewed like any other legal good. Companies should not be penalized because of the legalization, but many providers still operate differently for cannabis-related businesses. So, if you receive anything other than standard processing rates like a grocery store would, you are ready to change your merchant service.
Poor Customer Support & Service
Another way to know you’re ready to change your card processing service is if you have to contact them and do not get a speedy and helpful response. Take this example, for instance:
Let’s say you have a POS (point of sale) machine that is no longer connecting to the internet properly, and because of that, you cannot take any card sales. Most people who come to make a purchase do not have a lot of cash on them, especially if they are used to using a card at your dispensary. How quick is your merchant services response? Can you call someone anytime, during business hours, or 24/7? How fast and suitable is the company’s response? How long did it take them to get you back online with troubleshooting or an in-office technician visit?
This can be very telling about the service you are using. If you cannot get assistance for 24 hours or over the weekend, you will undoubtedly lose business and sales, which can make or break the month for some smaller companies. Customer service for your business services is one of the most important aspects of running your business plan smoothly.
Lack of Experience with Cannabis Banking Regulations
Another way you know you’re not working with the right debit & credit card processing company is if they do not have experience in the Cannabis industry. The Cannabis industry isn’t like other types of businesses. Some serious legal frameworks must be complied with. The problem is that it is an inconsistent regulatory landscape throughout the USA. Some states have full legalization, while others still see Cannabis as dangerous and illegal as Cocaine or heroin. There is no national consensus on Cannabis’ legality, creating a confusing and potentially problematic regulatory landscape.
Only a merchant service who knows the ins and outs of the Cannabis market and the required banking pathways should be who you are working with, not some large organization that doesn’t really know your business or the industry.
It is Time to Change your Provider
There are more reasons you may be considering changing your Cannabis Merchant Services Provider. These were just 3 of the most notable. Here at Brother Processing Solutions, we have specialized in the Cannabis industry for over ten years. We are investors in the industry. We’re proud we have built lasting professional and personal relationships that can only come from a place of trust.
Call us today, and let’s discuss your Marijuana focused business and how we can improve your processing today.
