The world of Cannabis is going through a lot of changes right now. If you live in Canada or one of the USA states where recreational Cannabis is legal, you’ve likely seen some of these changes firsthand. Whether it is dispensaries popping up, advertisements about Cannabis, or subway ads that discuss the importance of keeping your Cannabis away from your kids, a lot is changing in the world of all things Cannabis.
So is the business landscape of marijuana and its related products going through significant changes. The banking and financial systems are slowly getting up to speed with the modern times in Canada, and the hope is that banks can work with USA dispensaries soon enough. Good things are coming if you operate a legal cannabis dispensary, accessory shop, CBD store, or produce Cannabis flower, tincture, cream, or food products.
Understanding Cannabis Licensing Requirements
Cannabis Debit Card Processing Services
Provincial and state governments won’t give out cannabis licenses to anyone applying. A strict vetting process examines criminal history, financial backing, business plans, and more. In some states in the USA, these licenses are first offered to communities and individuals most adversely affected by previous cannabis laws (primarily people of color). This gives new market opportunities to communities who have struggled due to the stigma of incarceration and the inability to work from cannabis convictions.
Getting a legal cannabis license will depend on many different things, including financial backing to support the business. After you have the permit to operate, you must get your suppliers, bookkeeping, and taxation set up correctly. Cannabis taxes are notably high, which is part of why governments are legalizing it, to generate new revenues for the state treasury coffers. Keeping good books and taxation records is one of the most important things for cannabis dispensaries to do right. Be sure you’re working within the law and meeting all state and local requirements.
Understanding Cannabis Debit Card Processing Requirements
One of the compliance requirements is good bookkeeping and records when it comes to cannabis sales. Many dispensaries still use cash sales, but this can lead to more significant headaches from an operational and audit standpoint. Cash-only sales mean trusting your employees or installing large cash management systems which count, collect, and store all the cash of the day or week. Cash also has risks as it must physically be transported for deposit at the bank, creating vulnerabilities for theft along the route.
By accepting only debit card and credit card sales, dispensary owners can eliminate the need for cash sales or cash transport and simplify bookkeeping and taxation. Customers tend to buy more when they can use a card and feel more comfortable making a purchase as it is protected in some way. Getting your marijuana debit card processing set up properly means partnering with the right merchant service provider.
You should make sure of a few things before working with any Cannabis merchant service:
- What are the processing rates? Fees per transaction?
- Is the point-of-sale card reader included?
- How fast is direct deposit?
- Are there cash reserve requirements?
- Can you get technical support if you need it?
- Do they work with other cannabis businesses?
Not all merchant service companies are familiar with the cannabis industry and the legal and financial requirements that go along with it. Be sure you’re hiring the right one.
Find the right Cannabis Merchant Service
There are so many merchant services out there, but not many of them specialize in the Cannabis industry. This industry isn’t like others, so it stands to reason that working with a cannabis-specific company makes the most sense. Look no further than Brother Processing Solutions for the best in Cannabis Debit Card Processing Services. We’ve been proud investors in the industry for over ten years and specialize in all aspects of your Cannabis processing needs.
We work one-on-one with every client, so let’s discuss your processing needs and how we can help.
