Delta THC is now emerging as one of the highest-selling retail products in the United States! Many cannabis users enjoy the effects of Delta THC products, but this doesn’t make sales any easier. Below are 5 things to know about retailing Delta THC products, and how Paybotic can help.
1. Delta THC is not Federally Legal
Although Delta THC products are legal in many states, some states and the federal government still consider Delta THC products illegal. This is because cannabis is still considered a Schedule I substance under the Controlled Substances Act. When opening a retail store for your Delta THC products, it’s important to do research into your state and county’s guidelines for selling these types of products.
2. Owning a Cannabis Store Might Make Business Loans Tough
Because of the legal status of Delta-8, Delta-10 and other cannabis products, it might be difficult to get a business loan for your cannabis shop from banks. Banks might not be willing to grant a business loan to a cannabis business since this carries inherent risks. However, there are other avenues to obtain small business loans for your business, such as peer-to-peer loans, credit lenders, and more.
Learn more about the Paybotic Merchant Cash Advance program for cannabis dispensaries.
3. You Need to Consider Security For Your Delta-THC Payments
In addition to a lack of business loans, cannabis-related businesses (CRBs) experience obstacles to banking. Most national banking providers will not transact with a cannabis business. It’s important to keep this in mind when you’re trying to set up payments for your retail shop.
Paybotic can provide various custom payment solutions for your cannabis shop to process echeck/ACH payments. As well as other solutions to ensure anti-money laundering (AML) compliance for plant-touching and ancillary businesses. And reduce Suspicious Activity Reports (SARs) triggered by financial transactions.
4. Packaging Design and Compliance
As a Delta retailer, marketing and branding is everything for your product. Manufacturers in the cannabis industry have to take extra steps. They must make sure that the packaging of any product containing Tetrahydrocannabinol (THC) is compliant with local state laws.
Some of the restrictions to Delta and cannabis packaging include:
- Child-resistant container designs.
- Presence of batch code and business license number.
- Contaminant testing statement(s).
- Warning statement about THC content.
- Font size and type.
Delta and cannabis product manufacturers must ensure that packaging is not similar to a common food brand. And both packaging and advertising must not appeal in design, to minors. Including depicting cartoon characters. In some states, Delta gummies must adhere to a specific product shape, to make sure they do not appear as confectionary or vitamin gummies.
5. Counsel Your Customers
There are various types of products, including Delta-8 and Delta-9 THC. For new customers, make sure you explain to them the unique differences between these products. Delta-8 THC products produce a more mellow effect than regular Delta-9 products. In states where cannabis is not legalized for medical or recreational use, consumers may still purchase Delta products. Retailers are expected to provide some guidance on the psychoactive effects of Delta THC edibles, vapes, smokables, and tinctures.
