State-sanctioned cannabis businesses are a 21st Century phenomenon constrained by 20th Century federal laws that have forced many to rely on 17th Century methods of transacting payments, namely cash. Now there’s a 21st Century innovation that will transform the way cannabis businesses accept customer payments: electronic checks, or eChecks.
eChecks are a safer, more secure and more efficient way for cannabis businesses to collect payments than is cash. Plus, eChecks are less expensive to accept and clear faster than credit and debit card payments.
eChecks, as the name implies, are an electronic version of the paper check. Rather than writing out a check a buyer provides their checking account information to the seller who in turn sends an electronic request through their payment processing company for a transfer of funds. Any customer with a checking account can pay using an eCheck. And transactions clear in as little as a day.
eChecks leverage decades of technology advances that have transformed check clearing from a process that required a lot of human intervention to one that relies completely on electronic exchanges of information. This solution is a great fit for online and telephone sales of CBD and other cannabis-related products, especially when it comes to business-to-business transactions. The speed and efficiency of eChecks make them a superior alternative to paper checks and card payments. And the per-transaction fees are substantially lower than those charged for card acceptance.
Businesses involved in the legal cannabis market – from testing labs and distributors to dispensaries and online sellers of CBD oils and cannabis paraphernalia – are demanding modern payment solutions. Yet, archaic federal laws regarding cannabis, along with credit card processing rules that discourage merchant accounts for businesses selling cannabis and related products, have left many of these businesses in the unenviable position of accepting only cash payments.
eChecks are safer than cash. They are a faster, cheaper alternative to card acceptance, and don’t carry the risk of chargebacks. Unlike credit card accounts, there are no reserve requirements associated with eChecks, either. So what are you waiting for? If you’re in business selling cannabis, CBD oils, or any of the myriad of products that make up burgeoning cannabis market, and you’re not accepting eChecks, call Paybotic today. We can set your business up to start accepting eChecks in 72 hours, or less.