One of the fastest growing businesses in the United States is the Medical and Recreational Cannabis Industry. Yearly turnover in the cannabis industry has crossed $6 billion already since the end of 2016. The amount is increasing with each passing moment. Unfortunately, despite being such a massive industry only 27% (Approx) of banks are involved in financing Cannabis business, there are no proper marijuana banking solutions in the USA. As the federal law has still not legalized Marijuana, the banks deny getting involved in any financial transaction in the said industry.
Marijuana business owners, as well as buyers/patients, are suffering every now and then due to lack of proper cannabis payment processing solution. Private marijuana payment solutions are emerging now in the USA. They are safe, legal and a massive help for the small business owners. With them, one can get every kind of financial solutions that one needs for their business.
However, it is important to keep a few things in mind before making a commitment to a provider. We can bring up few points that one must note while choosing the best cannabis merchant service provider.
Know your provider
The very first step before finalizing the company, one has to learn about the vision and history of the company. It is very important to know the company that is helping you to transact with your customers. While others resell solutions it is important to find out how you are going to be service in your time of need and outside of normal hours.
Make sure they know the complicated law
As people know, Marijuana has many folds of laws and all of them are bit complicated. Whether you’re a retail dispensary or E-commerce CBD store shipping Nationwide. It is important to understand each states laws as they will vary. Paybotic takes a proactive approach to educating our merchants on current regulations via their social media platforms and monthly newsletters.
Their Fees & Hidden Cost
These companies are here for their business and of course profit margin. It is essential for any marijuana business owner to get the details of their fee structure. What types of fees they charge, are there any hidden cost or any other cost that is unaccounted or not by the law of the State. Some providers may charge the consumer and the merchant for services. We feel you should have the ability to choose a solution that has little to no operational cost to the merchant and doesn’t charge both the consumer and merchant.
For any business, it is important to be clear to your clients as well as vendors. The company you are choosing for recreational or medical marijuana payment processing solutions should be transparent to you regarding their services, price, terms and conditions.
What are they offering
Finally, the service part is the key element to see before getting into the business. Make sure your solution offers the variety of services. Mainly point of banking for MMJ dispensaries is one thing to look up if you are an owner of a dispensary. Credit card processing, debit card processing, gift cards, and other merchant services should be available with the company.
These are top 5 points that one must consider before hiring any cannabis business payment processing solutions.