The legal dispensary sector has struggled with banking. Even in states where cannabis is legal, banks are typically unwilling to lend to cannabis firms. A card network restriction on cannabis purchases has locked state-legal THC licensees out of merchant processing services, stopping them from interacting with debit and credit cards. This is where the dispensary card processing services like Paybotic etc. are helping such businesses with its financial transactions.
Providing false information regarding operations
Many cannabis firms use a fictitious company name to try to disguise the fact that their activities are connected to cannabis in any manner. Of course, they are ultimately detected by their bank, and their accounts are usually closed.
This strategy is particularly hazardous since entrepreneurs who lie to their banks and card networks risk being placed on a blacklist known as the Terminated Merchant File (TMF). Individuals who are added to this list will be unable to use card services for the next five years. The dangers are enormous, and the pay-out is little; this is not a suggested method of obtaining dispensary card processing services, no matter how appealing or simple it appears.
Traders’ accounts
Credit or payment cards are commonly accepted without POB processing, although these “workaround” methods are subject to their own risk set. A distributor may register a bank account without giving an identity to the distributor’s bank or disclose the parent company of the distributor. Spa products, vitamins, flowers and other product codes that are predicted for the company will thereafter be used with commercial codes. If the company’s account and credit card processing for sales of cannabis is suspect and finds the true nature of the retail dispensary.
Bank transfers or ACH
Accepting electronic payments transfers from their bank account is a good halfway ground for dispensaries that don’t want to deal with as much cash but don’t have access to a cashless ATM.
ACH stands for Automated Clearing House and refers to the method of moving money between banks without the need of cheques, wire transfers, or credit cards.
Because these transactions are electronic, companies may check that the money is present instantly, and the money is sent straight from the customer’s account to your bank account. ACH or bank transfers are a straightforward, safe, legal, and dependable method of payment.
ATMs that do not accept cash
The cashless ATM is still extremely uncommon in the cannabis industry, and it is not utilized at all in other businesses. This option works similarly to standard ATMs, in that a consumer inserts a debit card and enters their PIN (PIN).
The cashless ATM, on the other hand, instead of spewing out cash, is fully electronic, giving verification that the money has been deducted from the customer’s bank account and transferred into your company account.
There are many types of cashless ATMs: some operate outside of the POS (non-integrated), while others operate within the POS checkout process (integrated), but both require a PIN.
Wrapping up
It’s critical to choose the correct platform for your dispensary or delivery business when looking at cannabis payment processing solutions. It’s critical to examine software and hardware compatibility, customer records integration, and state regulatory compliance when it comes to medical marijuana credit card processing or adult-use marijuana payment options. Many dispensary owners and managers may be unsure of what questions to ask regarding card processing choices.
