Since the legality of cannabis will vary from state to state, vendors and merchants are subject to strict transaction guidelines. Unlike “low-risk” ventures, cannabis vendors cannot directly accept credit and debit card transactions.
The reason for this restriction is that cannabis has not yet been legalized on a federal level. Major card networks such as Visa and Mastercard will not authorize these types of transactions unless national legalization occurs.
These restrictions can be highly consequential to a high-risk cannabis business, as electronic transactions are the primary means of making purchases in modern society. These obstacles will not only hinder sales, but can also make it incredibly challenging for business owners and operators to obtain a merchant account with a credible financial institution.
These issues can be further compounded when dispensaries or vendors elect to withhold information during the application process. Failing to disclose the nature of business and which/how transactions are accepted can lead a business to face serious financial consequences. The Payment Card Industry Security Standards Council could even place them on a blacklist, preventing the company or owner from getting any merchant account in the future.
As a Paybotic sales agent, you will have the opportunity to help high-risk merchants manage this risk by explaining and offering the best payment processing services available in the cannabis industry.