The Cannabis industry is growing at incredible rates across Canada and the USA. The number of Cannabis production and dispensary license applications in Canada has doubled in the last six months alone. This means that more and more players are trying to take advantage of the growing market than ever before. Regulatory changes now allow Licensed Canadaian Cannabis Dispensaries to accept credit card transactions for the first time. This is a major shift away from cash-only and debit-only sales.
Credit Cards are Back on the Menu
Cannabis Dispensary Credit Card Processing
For years Cannabis dispensaries have been cut off from traditional banking services that all other companies enjoy. Sales were run via cash or debit cards through a “cashless ATM” system. In the USA it is still the case and will be until US federal legalization like in Canada. Debit card processing is not the same as taking credit card sales and limits businesses and customers in how they can pay for goods. Now with changes in banking regulations regarding the view of Cannabis businesses, credit cards are back on the menu.
This is great news for companies looking to make payment options easier for their customers. They no longer have to use cash for purchases or their debit card alone. Customers can now use their credit cards at dispensaries that have added credit card processing. Customers often prefer using a credit card because most have some sort of benefits like travel points or cash-back that cannot be used via a debit card.
Full Compliance is a Must
The Cannabis space has more regulations and legal requirements than a convenience store or a restaurant. It is more like a liquor store in terms of legal requirements needing to be met in order to stay compliant and legal as a business. Compliance is critical when looking for a cannabis payment processing company. A failure to comply with banking, sales, and insurance regulations can lead to huge fines or a cease and desist order from the government. Making sure you have federal and state (or territory) regulations in place is a must to keep your doors open. If you or your merchant service provider doesn’t keep in compliance with an ever-changing legal landscape, you could be forcibly shut down.
Benefits of Accepting Cannabis Credit Card Sales
For dispensaries, Cannabis accessory companies, farmers, and producers; using credit card sales is extremely beneficial. They offer better protection to the customer and convenience.
- Work with any bank
- Next-day funding
- More options for customers to pay
- End-to-End transaction encryption complies with all local and federal regulations
- Accept less cash
- Reduce the need for physical deposits
- Reduce the need for physical cash transactions
- Increased customer security with consumer credit card protections
Credit Cards Not Available in the USA but You Have Options
Until federal legalization in the United States, Cannabis companies will not be able to get approval for credit card sales transactions. Recently, the US House passed a law legalizing Cannabis, but it must pass the Senate to become law and there is still much debate to be done. As it stands now it isn’t expected to pass the Senate but it could be updated or edited and passed in the Senate to become law. Only time will tell. In the meantime, your dispensary or new cannabis business has some options we currently offer.
Debit card processing in the form of a Cashless-ATM is the option available for cannabis companies in the USA. This means you can offer your customers a debit card paying option where they enter their pin number to complete the transaction. We offer lower rates and far lower per-transaction costs than any of the competitors working in the USA now. Apply and get approval within 24 hours to start accepting debit cards right away.
For the best in Cannabis Dispensary Credit Card Processing, look no further than right here at Brother Processing. We are proud investors in the Cannabis space for nearly 15 years, we work with all areas of the industry. From farmers, producers, dispensaries, and accessory shops; we’ve worked with businesses of all shapes and sizes.
Give us a call and let’s discuss your processing needs today.
