Common Payment Processing Options for Dispensaries
The payment processing options for dispensaries aren’t ideal. A couple of laws still don’t consider cannabis legal, even though a couple of states already have legalized it in some form or another.
Because of this, cannabis vendors are running in a financial grey area. Banks will not service the marijuana industry without legal cannabis at the federal level. Credit card processors and banks can face fines for servicing a dispensary business.
Recreational and medical cannabis businesses are left without a payment processor. Because of this, the marijuana industry has created a couple of ways to accept payments.
The marijuana market has created a couple of payment processing solutions. This includes cash, cryptocurrency, debit card, and credit cards. However, the most popular ones are cash and credit cards.
Today, we’re going to share with you why they choose cash and dispensary credit card processing solutions.
Dispensary Processing with Credit Card
The simplest solution for dispensaries is to accept credit cards as a form of payment. A dispensary credit card processing solution is a common option. However, it isn’t easy.
The federal government is the major obstacle to this. As mentioned earlier, they still consider marijuana illegal. Because of this, they try to block financial institutions from offering merchant accounts for dispensaries.
That is why recreational and medical cannabis vendors have searched for alternative options. Unfortunately, there isn’t an ideal fix. Still, credit card processing solutions are becoming well-known.
To make things simple, systems that enable dispensaries to accept credit card payments are the ideal ones. These systems also enable cash and debit.
Dispensary Processing with Cash
Cash is great for business in general. However, it can be extremely frustrating in the cannabis industry.
Most dispensaries choose cash as the standard payment option due to the illegality of federal marijuana. At first, this helped a lot of dispensaries.
Unfortunately, once the volume of cash starts to increase, it created major issues. The truth is that cash as a dispensary processing method creates day-to-day problems.
For those who don’t know, it’s extremely expensive to accept cash as a payment method. The reason for this is that the dispensary will have to keep their money safe. Oftentimes, they’ve got to hire armed security to protect their money for safety measures.
Aside from the cost of hiring security, they will also have to consider other steps. For instance, if they want to deposit their cash to banks, they will have to hire armored trucks.
Aside from the costs and risks of protecting the cash, it also creates another security danger. The possibility of robbery increases if a dispensary has a huge amount of cash on hand.
Because of this, it can be less efficient to run a dispensary business if you use cash as the main payment option. Common business elements such as taxes, rent, and payroll become a lot harder in cash.
Because of this, cash isn’t an effective processing solution. Unfortunately, most dispensaries have no other options because of the legality that surrounds cannabis and marijuana.