Despite its increasing popularity and legalization in some states, cannabis is still illegal at this time. While recreational and medical dispensaries exist around the country, major credit card processors do not openly provide merchant services to them. Discover why it is crucial to find the best dispensary merchant services provider.
Cash and Carry Can Be Inconvenient
Cash and carry might not be a convenient option for every customer, and cash-only dispensaries could be targeted for robberies. Dispensaries never want to turn away customers because they are unable to make cash payments. With an absence of viable marijuana merchant services providers, dispensaries and their customers will face these payment problems.
Moving Toward a Solution
The possibility of cannabis banking is starting to pick up in 2019, with the Secure and Fair Enforcement (SAFE) Banking Act bill passed out of committee. The bill is to protect the financial institutions that provide merchant services to cannabis companies to alleviate the stress associated with accepting credit cards for payment when purchasing cannabis items.
Further Support of Cannabis Banking
The American Bankers Association supports the SAFE bill and is ready to offer a safe way for industry retailers to accept electric payment options. And total legalization is also a possibility. A proposal titled the Strengthening the Tenth Amendment Through Entrusting States (STATES) Act could be introduced this year and has received support from the President of the United States.
Point of Banking Systems As An Option
Merchant account providers are finding ways to avoid reliance on major credit card processors. A point of banking terminal is like an ATM to enable electronic processing. The process differs from regular credit card processing as the customer enters a PIN, selects a withdrawal transaction, and states the dollar amount with the merchant providing change for differences as withdrawals are in increments of five.
As the country moves toward the potential legalization of marijuana, states that legalized it need merchant services that enable them to accept credit cards. Finding a top provider ensures cannabis companies can offer the convenience of accepting credit cards to their customers without having to turn them away.