How to Legally Bypass Restrictions on the Processing of Cannabis Transactions
Trying to process payments for cannabis can be very confusing. Even if most of the payments for cannabis you receive are in cash, you may need a payment processor to make the processing of payments easier and to also help you remain organized.
Why Digital Payments Are More Popular
Digital payments have become more normalized as consumers have tried to avoid the spread of disease. Therefore, you will give your dispensary an advantage if you are able to accept this form of payment.
Obstacles When Processing Transactions
Unfortunately, credit card companies are regulated federally. Therefore, there is a strict prohibition against the use of credit cards to process cannabis transactions, even in locations where it is legal.
Point-of-Banking
One workaround is to use a debit card to withdraw from a cashless ATM. Like credit cards, debit cards cannot be used to make a purchase simply by swiping the card. However, with cashless ATMs, you will be allowed to accept debit cards legally through a process known as "point-of-banking."
With point-of-banking, cash can be withdrawn from the customer's bank account in increments of $5. However, the ATM does not actually withdraw the cash but instead deposits it directly into your bank account. This transaction also occurs more quickly than if you had processed it using a credit card. Therefore, even though you cannot use a credit card, the alternative might be more convenient.
This type of payment processor can be more expensive because you will have to pay a relatively high monthly fee. However, the transaction fee is actually lower than with a credit card and you might actually save money.
ACH Payments
Another way that you can process cannabis transactions is with ACH payments. This is a service some banks offer that allows for money to be transferred from one bank account to another. Because the transaction occurs electronically, this is ideal for those who are concerned about spreading disease when handling cash.
One challenge with ACH payments is that they are mostly designed for e-commerce and do not come with convenient credit cards. Instead, customers will need to download and install an app on their phones.
Some customers might not want to do this initially. However, if they are returning customers, they might find that ACH payment is the most convenient option. Also, most individuals own mobile devices and can easily install the app right in your store.
For more info, reach out to a service like Paybotic.