The legalization of both medical and recreational marijuana across multiple states has led to rapid growth in the cannabis industry. However, despite these sweeping changes, the legal cannabis industry is still considered to be a “high-risk” market.
This status requires dispensaries and other cannabis retailers to operate under more stringent reporting standards, especially when it comes to online transactions. Adhering to these guidelines and directives is a must if merchants want to achieve sustained success in a lucrative and dynamic marketplace. However, navigating these complex and ever-changing reporting requirements can be challenging—especially in states with stricter cannabis laws.
Paybotic has an extensive history in overseeing high-risk payment processing and can ensure that your merchants will stay in compliance with current reporting mandates. We will oversee both FDIC and PCI DSS reporting practices to keep businesses away from committing potentially costly missteps.
Contact a representative from Paybotic today for more information or read on below to learn more about payment reporting regulations and how they may affect your cannabis business.
The Federal Deposit Insurance Corporation (FDIC) is an independent entity created by Congress. They supervise and examine various major financial institutions. One of their primary responsibilities is to ensure that these institutions adhere to consumer protection practices.
The Payment Card Industry Security Standards Council was formed by major payment card brands including Visa, Discover, and Mastercard. These companies are also responsible for enforcing the guidelines set forth by the PCI DSS. Violations of high-risk processing guidelines can result in fines to both financial institutions and merchants.
Yes, the PCI DSS applies to any merchant that utilizes cardholder data in any form or fashion. This includes transmitting, storing, processing, or accepting this data for the purpose of completing a transaction.
PCI DSS requirements can be very stringent. They vary depending on the size of your business and the number of transactions that you complete on an annual basis.
Paybotic’s financial experts can aid merchants by ensuring adherence to the appropriate compliance level requirements. We accomplish this by submitting requested information to the governing body and completing annual assessments.
Our professionals assess the existing financial structure of an organization and determine the appropriate compliance level. If one of your merchant’s businesses is experiencing growth and nearing the next progression, we will adhere to the more stringent set of requirements.
Since the FDIC is heavily involved in protecting consumer information, their requirements also apply to cannabis vendors. However, many of these requirements will be dealt with indirectly in the form of merchant agreements.
Partnering with Paybotic provides agents an opportunity to give their vendors peace of mind when it comes to compliance and recording every high-risk transaction. We will send required data to supervising entities, complete audits, and regularly review merchant agreements—all in a timely manner.
If you are interested in learning more about our ability to assist with payment reporting, please speak with a Paybotic expert.