The A to Z of the Cannabis Industry

The following are common dispensary glossary terms that you will see in the cannabis industry.


289 E Tax

The law states that businesses selling controlled substances cannot deduct any expenses related to the production, distribution, and sale.


Used as a secret code in the 1970s by friends at San Rafael High School who met at 4:20 p.m. to consume cannabis. Since then, it is become synonymous with cannabis and has become an international marijuana holiday taking place on April 20th.


This refers to July 10th which has become a day to celebrate dabbing cannabis concentrates.



Adult Use

Refers to the recreational legal use of those over 21 years of age.


Application programming interface. Allows cannabis stores to integrate their technology across multiple platforms.




Back of House. This refers to areas in dispensaries not accessible to consumers.


Used to describe the appearance of cannabis extracts that have a similar consistency to butter only softer.

Brand Standards

The guidelines applied to every aspect of a cannabis company’s brand.

Budtender/Sales Associate

Someone who sells cannabis products to customers or patients at a dispensary.

Buy Online Pickup In-Store (BOPIS)

Refers to the dispensary workflow allowing customers to browse products online, and pick them up later in-store.



Cannabidiol (CBD)

The naturally occurring compound in the resinous flower of cannabis is found to have therapeutic properties.


A chemical compound found in cannabis is also produced in the human body.

Cannabinol (CBN)

A non-intoxicating compound created by aging THC.


A plant in the hemp family used for medicinal and recreational purposes throughout history.

Cannabis Banking

Although cannabis businesses are legal at the state level, they often face difficulties with regard to banking and processing payments. Because the cannabis industry is heavily regulated, total transparency is necessary for these startups and their financial transactions. Unfortunately, most traditional banking institutions don’t have the systems in place to meet such standards. Thanks to Paybotic’s cannabis bank compliance solutions, state-legal cannabis businesses can work with us to streamline their financial transactions and ensure compliance along the way.

Cannabis Dispensary POS Software

Software that enables dispensaries to automate the checkout process.

Cannabis Market

The areas that dispensaries operate in.

Cannabis Taxes

Vary from state to state and sometimes county.


Someone authorized to obtain medical cannabis on behalf of a medical patient.

Cash Management

The management of a cash-only marijuana business.

Certificate of Analysis

COAs are third-party documents that analyze the compounds found in any given strain.


A cannabis plant is an exact genetic copy of its mother plant.

Closed-Loop Extraction

Occurs when the raw flower is sprayed with a pressurized solvent that separates the cannabinoid and trichomes from the plant. This process creates concentrates like resin, wax, or shatter.


Following rules and regulations.

Compliance Manager

Monitors the ever-changing local regulations and creates policies to keep staff accountable.


Product derived from cannabis flower that is processed into a concentrated form.

Consumer Demographics

Statistical data that outlines the unique characteristics of customers.


The process of growing cannabis.

Cumulative Taxes

Taxes calculated individually against the gross receipt plus applied taxes.

Curbside Pickup

Picking up an order in your car after placing an order online.

Customer Experience

The overall experience of a customer’s interaction with a dispensary.

Customer Retention

Allows customers to return to a dispensary for future purchases.



Debit Processing

Cannabis debit card processing permits a canna-business merchant to accept a consumer debit card linked to that consumer’s checking or savings account.


Refers to cannabis no longer being a criminal offense.


Refers to when a budtender brings the flower to a customer or patient weighing it in front of them.

Delivery Manifest

Requirements that mandate dispensaries to account for deliveries in their inventory report.


Difference or inconsistency in an inventory report.


A legal establishment where patients and customers can access cannabis.


Supplies cannabis products to dispensaries and consumers.




Electronic Checks, also known as E-checks or ACH, are an easy way to accept payments online. All customers need are a bank account and routing number, which is actually less information than a customer would provide for a credit card order purchase.


The process of conducting business online.


A food product that contains the cannabinoids of THC or CBD.

Employee Permissions

Access levels that are granted by dispensary managers to their employees.

Excise Tax

A tax imposed on cannabis products.


Opening more dispensary locations.

Extended Plant Count (EPC)

The limit of plants allowed to individual consumers by state.


Concentrated produced with the use of a solvent.



File Naming Convention (FNC)

A standardized way of naming products.

First in First Out (FIFO)

An inventory management system that ensures that products are sold before they expire.


The smokable part of a female cannabis plant.


Allows individuals to operate trademarked businesses in new locations.

Front of House

The customer-facing part of the business.




Slang term for marijuana.


Slang for a certified cannabis professional.




Computers, tablets, and mobile scanners in a dispensary.

Headless eCommerce

The separation of the front and back end of an application.


Derived from non-intoxicating cannabis.


A strain containing both Indica and Sativa.



Illicit Market/ Black Market

The market where cannabis is sold illegally.


Subspecies of the cannabis plant that is associated with a more physical high good for relaxation, stress relief, and sleep.


Joins two technology solutions together.

Inventory Audit

The process of counting all inventory.

Inventory Intake

The process of taking in new products.

Inventory Manager

The person who oversees all inventory

Inventory Shrinkage

Revenue loss due to internal or external theft, vendor fraud, or damage to inventory.




The resin glands containing the terpenes and cannabinoids in the marijuana plant.


Technology that allows customers to browse the product catalog and place their orders.



Legal Markets

State-specific markets where cannabis is legal.


Refers to legally being able to consume cannabis whether medical or recreational.


Required to legally operate a dispensary.

Limited Access Area

Anywhere marijuana is grown, cultivated, stored, weighed, packaged, sold, or processed.

Live Resin

A cannabis concentrate created by flash-freezing a plant immediately after harvesting. Extracted using a solvent like butane.

Living Soil

Planting material used to grow cannabis.

Loyalty Program

A program that rewards repeat customers.




A term that refers to smoked Cannabis.

Medical Marijuana Card

An I.D. for medical marijuana patients.

Merchant Cash Advance

A Merchant Cash Advance is an advance on debit sales receivables. If you sell cannabis and related products, and you accept credit and debit cards, you can qualify for a Merchant Cash Advance from Paybotic. Funds are disbursed in lump sums, and repayments are made at a fixed percentage of daily credit and debit card sales processed until repayment is completed. (Note: Merchant Cash Advances aren’t loans)


Marijuana Enforcement Tracking Compliance


Short for medical marijuana, MMJ is cannabis (and cannabinoids) prescribed by physicians for their patients.

MMJ Delivery

MMJ Delivery, medical marijuana delivery, is a service provided for patients have cananbis prescriptions delivered in states where medical marijuana is legal.

MMJ Curbside

MMJ Curbside Pickup for Marijuana Retailers. Curbside pickup allows customers to shop online or call ahead to place their orders and pick up outside, which minimizes contact with staff and other customers.

Multi-Location Dispensary

Two or more stores that operate under the same ownership.

Multi-State Operator (MSO)

Cannabis companies with operations in multiple legal states.




Marijuana businesses not complying with specific local laws.




The process of bringing in new employees to the dispensary.

Online Menu

The catalog of available products online.

Order Ahead

The process of customers ordering online for pick-up.



Package Tag

Unique identifiers that indicate that products are ready for sale or transfer.

Par Level

The minimum amount of inventory necessary to meet customer demand.


Someone approved for medical marijuana use.


Refers to forms of payment that are allowed in a dispensary.

Payments Processing

A cannabis merchant account, also known as merchant services, allows your business accept payments in various ways, typically by accepting card payments. Paybotic’s cannabis card processing solutions offer a convenient way for customers to pay for their products while reducing the amount of physical cash that runs through your business.

Point of Sale (POS)

Relates to the moment a customer is making a purchase.

Post Tax Fees

A separate tax fee for a transaction.


The strength of the product is often indicated by its THC level.


Refers to Prepackaging.


A joint that has already been prepared by the vendor or dispensary.

Product Catalog

Shows both product sales and current inventory.

Propane Hash Oil (PHO)

Cannabis extract that is made with propane as the solvent.

Provisioning Center

The legal term used in Michigan to describe a medical cannabis dispensary.

Purchase Limits

The maximum amount of cannabis a consumer is allowed to buy.



Restricted Access Area

A secure area not accessible to consumers.

Retail Dispensary

Shops that provide cannabis to adults for legal recreational use. Retail Marijuana businesses do not have access to the traditional payment processing solutions employed by most establishments so canna-businesses must find payment systems designed for the complexities faced by dispensaries in legal states (E.g. – Paybotic).

Rick Simpson Oil

Concentrate created in 2003 by Rick Simpson used to treat his basal cell carcinoma.


Cannabis Extract which is extracted through heat and pressure to the flower creating a resinous sap.




Taller than Indica plants, Sativa strains have an energizing effect after being consumed.

Seed-to-Sale Software

Tracks every stage of the cannabis supply chain


Smaller marijuana buds that fall off larger nuggets.


Cannabis extract that is made through butane extraction exhibiting a glassy appearance with high THC.


Deals or Discounts.

Standard Operating Procedure

A procedure that allows dispensaries to maintain efficiencies, compliance, transparency, and risk mitigation within the cannabis industry.

State Reporting

The process of sending the necessary data to the state’s track and trace program.

Store Layout

The floorplan of your dispensary.


The type of marijuana.



Tech Stack

All the technology and tools utilized by a dispensary.


The substance that creates the flavor profile of a particular cannabis strain.


Delta-9-tetrahydrocannabinol (THC) is a cannabinoid found in cannabis. It is what creates the euphoric effects that cannabis is associated with.


Cannabis-infused with alcohol meant to be taken by medical patients orally.

Top Shelf

Refers to the highest quality of cannabis.


Cannabis-infused lotions that are meant to be applied to your skin.

Track and Trace

The system used by state regulators to track all marijuana inventory.




A vape is a smoking device that heats the compounds in cannabis flower or concentrate into vapor.

Vertically Integrated

A cannabis business that manages all aspects of the supply chain.

Visual Merchandising

How a dispensary displays its products to appeal to its customers.




A cannabis concentrate that contains high levels of THC with a honey-like appearance.


A common slang term for cannabis.


Processes that employees, managers, and owners use to fulfill day-to-day operations.

Post date: 8/15/2021
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