Using the right cannabis payment processing solutions is critical to a cannabis dispensary’s success. As you develop your business infrastructure over time, you can incorporate different solutions. A full suite of cannabis payment processing options can lead to increased sales, more satisfied purchasers, and improved dispensary systems.
This brief overview of 420 friendly banking solutions might help you decide on the best most suitable solutions to serve your customer base and support your cannabis dispensary’s functions.
Cannabis Payment Processing Solutions
Cash: Simple and Compliant
A purchaser has the option of using cash at most if not all dispensaries. It is a simple and easy form of payment, and it is a legally compliant method.
Most dispensaries have centered their processing procedures on cash purchases, but there are some problems that can be minimized or avoided when using payment solutions other than cash. For example, using cash comes with a greater potential of revenue or inventory loss, whereas credit card processing and eCheck/ACH payments offer more accurate ways to monitor inventory and employee behavior.
Another good reason to use eCheck/ACH or other banking solutions is that consumer research studies have shown that people make larger dispensary purchases when using a debit card or credit card in contrast with the smaller purchases they tend to make when paying with cash. These tech-based alternatives to cash purchases include automated clearing house payments (ACH) and credit cards from 420 friendly banking agencies.
Automated Clearinghouse (ACH)
An automated clearinghouse (ACH) functions as an electronic check. E-checks are useful for dispensaries with high value and volume of transactions, and this method reduces transaction fees.
Paybotic offers an eCheck program that usually approves applicants within 48 hours. Services come with expert advice and product support. This option allows purchasers to make transactions online or in-person.
Debit processing offers purchasers a point of sale banking system to pay for their cannabis products; it allows purchasers to use their debit card in a dispensary for a fee ranging between 3-5 USD. The purchaser makes a cash withdrawal that is directed to the merchant. The transaction must be authorized by the bank and appears as a cash withdrawal on bank statements. Merchants charge a convenience fee, because they must pay the banking solution company fees. These monthly fees can include a “per swipe” or a percentage of each transaction that can decrease revenue.
Some banks offer credit card services that allow dispensaries to process payments. When selecting a credit card solution, make sure you consider the legitimacy of the company. In particular, confirm that the company’s solutions are legal. Some companies try to route funds offshore, so you want to avoid any legal issues that will potentially jeopardize your good business standing.
Pay attention to contract terms and opt for a month-to-month fee to avoid getting locked into a longer contract. Some can be up to three years and have significant termination fees. Make sure you go through the underwriting process before you start payments. Analyzing the terms will help you set up efficient credit card payment solutions.
The Effectiveness of a Full Suite of Cannabis Payment Processing Solutions
Look for a cannabis payment processing provider that offers a full suite of solutions. The versatility and depth of services a full suite offers will optimize your dispensary’s earnings and effectiveness.
Paybotic is an example of a company leading the way with an array of merchant-friendly, compliant solutions. These services include debit card processing, ACH/eCheck, or other payment solutions. You can add and adapt solutions for your cannabis business as you scale up your business efforts. Our experts can advise you on which cannabis payment processing products might work best for your needs.
Meeting Customer Needs
Pay attention to customers’ questions and needs. Are they finding certain solutions easier to access and use than others? Are a significant number of customers asking if a specific solution will be offered in the future? Do their solutions differ depending on the type of order (pick up, delivery, online, etc.). You will become more mindful of matching solutions to the needs of various transactions as your business evolves.
You may want to optimize customer service and revenue generation through using several solutions simultaneously to meet the needs of different members of your customer base. This approach also allows you to scale up services as your cannabis dispensary grows.
Do not forget to take into consideration the unique state and local compliance issues of your specific cannabis business location when selecting 420 friendly banking solutions.
Looking for Cannabis Processing Services? Contact Paybotic Today
If you have questions about debit card processing, ACH/eCheck, or other payment solutions, our team of experts will help you with your questions and connect you with the best partners to fulfill your cannabis payment processing needs.