In the last decade, the cannabis sector has had a significant transformation in the United States. Despite legal hurdles, the cannabis industry continues to drive more growth. In 2020, cannabis sales in the US alone managed to cross the $17.5 billion threshold — a 50% increase from the 2019 cannabis sales.

In the digital age, merchant accounts have become a pivotal part of the eCommerce sector. Data predicts that the legal cannabis market will hit a sales growth of $30 billion by 2025. The green rush is far from over, and now cannabis dispensaries will need to acquire high-risk merchant bank accounts to accept smooth electronic payments from customers.

Importance of Finding the Best Merchant Account

dispensary payment processing companies

At some point, almost all business will need to have digital payment processes available for selling their products. Therefore, it is no wonder finding the “right” merchant accounts has become quintessential for cannabis businesses. Luckily for cannabis business owners and decision-makers, a high-risk merchant account will allow dispensaries and other high-risk industry establishments accept and process various electronic payments.

For starters, you would be able to accept and process debit, credit, and ACH payments. Technical inaccessibility still exists but these types of accounts allow cannabis business owners to become the gateway between customers and their business.

The end goal of a high-risk merchant account is to ensure all cannabis-related transactions process correctly. It is no secret that the federal government and financial institutions are not broadminded towards the cannabis sector. But there is no reason for cannabis business owners to hold back their payments and growth potential.

In 2020, robust payment processing options for cannabis business owners can make all the difference. Of course, finding a reliable payment processor can be difficult for merchants in industries considered to be high-risk. Make sure your main objective is to not pay more than you must and opt for a secure merchant account.

When considering potential financial partners for a cannabis merchant bank account, focus on these essential considerations and tips:

Research High-Risk Merchant Account Services Providers

Concerning high-risk merchants, your main priority should be to conduct thorough research and find out more about service providers. Opt for a merchant service provider that has a reliable and successful record with high-risk clients in the cannabis industry.

But do not choose a payment processing provider that charges inflated fees for high-risk cannabis customers. It may be a widespread practice, but make sure the financial services provider is transparent about costs. Also, take a moment to review the terms and conditions set forth in the application. At this stage, you should ask any remaining relevant questions you may have.

Establish an Open Relationship with Your Merchant Service Provider

Tips for Getting a Cannabis Merchant Bank Account

Once you have narrowed down your payment processing options for a high-risk merchant account, be open and honest with your service provider. Specifically, make sure to talk about your business operations and industry.

The more honest you are – the more accurate rates and quotes you can expect. If requested, do not hesitate to provide specific information like your credit history and financial statements to your merchant account provider. In fact, it is often recommended to have this information prepared in advance of meeting with a financial services provider.

Select a Provider without Long-Term Contract Requirements

cannabis payment processing solutions

Once you start to review multiple payment processing service providers, you might notice a trend of mandating long-term contracts for high-risk merchants. In fact, you would be surprised at the frequency with which merchant service providers trap their clients into extended contracts.

The right course of action would be to avoid services that make this a vital requirement. Naturally, you do not know how your cannabis business may change soon. Ideally, seek a payment provider that offers month-by-month basis flexibility in the contracts. It would make it easier for you to switch to another service in case of a major business change.

Go for the Best Payment Processor

Another consideration is to ensure offers of the payment provider align with your cannabis business’ payment processing needs. The trick is to not make any compromises on the transparency, value, and competitiveness of the payment service provider.

In terms of features, make sure your payment processing service provider is offering POS systems, credit card terminals, mobile payment solutions, integrations, and payment gateways. The extent of services you may receive from your payment provider may increase with more competitive pricing over time.

Focus on the Value of Service

In the end, make sure the payment processing provider is offering market-competitive valued service. The hallmark quality of a reliable payment processor is that it will continue to offer services like 24/7 support, maintenance, troubleshooting, and training. Dive into the reviews and assess if the payment service provider is good enough for your cannabis business needs.

You should also make sure the service provider has extensive experience with high-risk merchants. Additionally, the service provider should have a specialized card processing solution specifically for high-risk merchant accounts. It can include management tools, chargeback mitigation programs, and chargeback fraud protection.

Why Paybotic Deserves Your Attention

Tips for Getting a Cannabis Merchant Bank Account

With Paybotic, you can make your cannabis business payments simple. Paybotic offers payment-processing solutions that cater to specific business needs. Whether you want to cut back on costs, generate more revenue, or streamline transactions, you can count on Paybotic to use intelligent technologies.

With in-house experts, competitive rates, transparent approach, Paybotic makes up for an ideal cannabis business payment solution. Through Paybotic, you can also enjoy eChecks, debit processing, gift card programs, streamlined operations, cash advances, and specialized cannabis banking.

Cannabis business owners face mountainous challenges when it comes to securing a cannabis-friendly bank account. But with the rights steps and right banking solution, you can make your payment processes simple, flexible, and easier.

From the perspective of cannabis business owners, it is crucial to understand that the banks are under extreme regulatory scrutiny when it comes to cannabis accounts. It is the main reason banks dig deeper into cannabis businesses and their owners.

But high-risk merchants can operate in different industries that come with the high-risk level. Aspiring cannabis business owners have a distinct opportunity to get a high-risk merchant bank account. In hindsight, it is “the” first step to initiate accepting and processing electronic payments.

Contact Paybotic today to learn more about our cannabis payment solutions.

Post date: 10/7/2021
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