With New York State being the newest of the fifty United States to legalize the recreational sale and consumption of cannabis, the shift is gaining speed towards federal legalization in the USA similar to Canada. As more and more states shift towards decriminalization and legalization, the prospect for business growth and potential in the marijuana space has never been brighter. But if you’re in the industry already or looking to get in, what do these changes mean to your bottom line? How does this help or hurt the case for cannabis investment? Let’s take a look.
State Legalization is Not Federal Legalization
Cannabis Debit Card Processing Services
Even though many states have legalized cannabis and more are planning to do so in the USA, Cannabis is still considered an illegal class A narcotic, on the same level as heroin and cocaine. Now, we all know this is a bit ridiculous but it remains a fact federally in the USA that cannabis is illegal. This creates problems for companies and businesses looking to get in or those who are already in the marijuana space. When you can take only cash transactions at your business because banks and other credit card processing companies won’t allow you to take credit sales due to federal laws regarding Cannabis, it can be a large problem.
No business owner wants to make large cash deposits at the bank each week or trust every employee to handle loads and loads of cash on a daily, weekly, and monthly basis. There have been nightmare cases reported of robberies and risks when leaving a store with huge amounts of cash. This state-by-state legalization hasn’t made it easy for businesses to come fully out of the shadows as the looming threat of a federal crackdown is always there.
So, is there no solution? Are you stuck taking cash sales and risking it? Luckily, there are some solutions for dispensaries and growers alike.
Cannabis Merchant Services are Changing
Banks and other merchants aren’t going to sit on the side forever as there are potential billions in revenue at all levels of the cannabis industry. From the ground up to the retail recreational user, the industry is changing rapidly and further state legalization has helped speed that up. Now there are clear solutions for business owners to take debit transactions and even credit sales are the counter or online through their e-commerce website.
As Covid-19 has shown us, cleanliness and washing your hands are more important than ever, and that means eliminating cash which we all know can be filthy. With this shift businesses are completely overhauling their point of sale systems to take card sales and touchless card sales over cash. It is safer for the safety of the employees and customers but also far safer from a business perspective.
Instead of making large cash deposits, you can expect direct deposits like any other business the following business day.
Coming Out of the Shadows
Cannabis is going mainstream in North America and that bodes well for everyone who has been in the business for years. If you have operated in the shadows or the grey area of legality, take heart that now that is no longer the case and is getting more accepted by people who in the past were adamantly opposed to cannabis consumption. We’ve found that mostly that was due to the legal status of it, not because people think it is dangerous or a real “gateway drug”. So, take advantage of the new trend and get your Cannabis Debit Card Processing Services set up today.
Call Stuart to discuss your business, Brother Processing has been investing in the cannabis and CBD space for over a decade.
