Have you had a grey area “work around” credit card processing merchant account that was later shut down? What a hassle that is!
Dispensary owners are well aware of the banking barriers surrounding the cannabis industry. Trust us, banks want to earn your business, but because marijuana is not yet federally legal, banks have been hesitant to open payment processing accounts for marijuana dispensaries.
Maybe for that reason you are still operating as a cash-only shop. Cash is great, but also costs you time and money to count, store, or hire security guards with armored trucks to transport. Not to mention worrying about theft or the safety of employees.
Many customers do not carry a significant amount of cash on them and if they do, purchases are limited to the cash in their pocket.
Maybe you already offer customers the opportunity to use their debit cards. Payment devices that operate as a cashless ATM provide customers the ability to use their PIN-based cards, but not their credit cards. Accepting debit cards and accepting credit cards are two separate programs when it comes to the cannabis industry. These two programs can complement each other and significantly grow your annual revenue.
At iQ Merchant, our primary goal is to expand the narrow path of accepting payments for the cannabis industry by providing true dispensary credit card payment options for in-store and online purchases of cannabis and CBD.
Legally accepting credit cards comes with the obvious benefit of increasing transaction amounts and in turn generating more revenue. Dispensaries that offer the option of paying with traditional credit cards see an increase of sales volume go up by 30%. Imagine if your monthly sales went from $500,000 to $650,000. That’s an annual increase of $1.8 million. Just because you placed a credit card terminal on your counter (at no cost to you) and gave customers the option to use it.
Think about it.
If Michael came into a dispensary with $100 cash, his purchases are limited to only $100. Unless he goes back to the bank or a nearby ATM to withdraw more cash. Depending on who owns the ATM, there is usually a hefty transaction fee ranging from $2.50 to $5 or more. Now, if Michael has the option to use his VISA, Mastercard, or Discover credit card, he can get that extra cartridge and maybe some edibles. He gets extra goodies, can make payments on his purchase, and your sales volume on one transaction just doubled. Apply the same strategy to your e-commerce store…. you get the idea.
So, what’s the catch?
We believe that cannabis and other related products offer many health benefits. Getting set up to accept credit and debit cards at your dispensary should not be an obstacle course. As of May 2021, 36 states and four territories allow medical use of cannabis products. As of June 2021, 18 states, two territories and the District of Columbia have enacted legislation to regulate cannabis for nonmedical use.
Marijuana and cannabis products will eventually be state and federally legal with significantly less or nonexistent barriers of sale and consumption. Dispensary owners will want to be fully prepared to accept all forms of payment, including VISA, Mastercard, and Discover credit cards.
This isn’t a gift card work around solution or a shady merchant account set up as a different type of business. Eventually the processor finds out about these illegitimate merchant accounts and shuts them down immediately.
iQ Merchant offers a true cannabis credit card payment solution for your retail location and e-commerce store that gives you access to accepting traditional credit cards including VISA, Mastercard, and Discover. We extend our white glove services leading you through every step of the application, approval process, installation, and ongoing relationship. Our high-risk expertise, 95% approval rate, and a wide range of 25+ banks to partner with ensures that we lock in the best program for your business.