The cannabis industry is trying to stabilize itself, but it’s managed to gain a foothold. With the legality of it all still in question in many places, plus the risk that comes with a fledgling business, there are many factors that make banks worry. It’s not easy to take what was previously a black market operation and turn it into a legitimate endeavor. The good news is that there are ways to establish your marijuana dispensary with the payment options and protections that other companies rely on daily.
Why Are Marijuana Dispensaries Considered High-Risk?
Bringing marijuana to the light of the legal business world presents several challenges. Many financial institutions are reluctant to provide merchant account services due to the high level of risk. Their concerns include:
- Changing laws that vary from one state to the next
- Dispensaries could become a desirable target for burglars and scam artists
- The stigma of operating in an industry that was previously part of the black market
- If raided, the federal government could seize property used as collateral
Acceptance of the marijuana industry is growing, but banks are slow to get on board. Business owners are looking for ways to incorporate more financial services into their dispensaries. Some companies are stepping up and offering solutions, like South West POS Technologies. We have partnered with American Verification Processing Solutions (AVPS) to bring payment processing to high-risk businesses like those in the marijuana industry.
What Are the Benefits of Accepting Credit Card Payments for Marijuana Purchases?
Some dispensary owners have opted to keep things simple and accept cash only. This can work, but it will limit your customer base and open you up to many risks. Debit and credit cards are common in today’s society. Some people refuse to carry cash, even for small transactions. That means you will be eliminating those people from your pool of potential customers.
Counting and handling cash also creates the potential for employee mistakes. Missing money is difficult to track, and human error could hurt your profits. With payment processing services, exact amounts and related information are stored electronically, so you know it’s accurate and accessible. Not only does this greatly reduce human error, but can also increase efficiency.
While it is not impossible to steal financial information off of a computer, it is much easier for the common thief to run off with a handful of your hard-earned cash. Tracking down a criminal is much harder when they have money in-hand. Payment processing services will allow you to keep less cash in your dispensary at a time. Fewer dollars on the premises means less potential loss should someone break in.
Start Accepting Credit Card Payments Today
Credit card payments are secure, easier to count, and convenient for customers. Give your marijuana dispensary all the POS tools it needs to keep profits growing. Contact us today to learn more about our high-risk merchant account services.