What Does the Future of Cannabis Payments Look Like? | Shift Processing

What Does the Future of Cannabis Payments Look Like?

The cannabis industry is starting to really take off in the United States. More and more states are making it legal to buy cannabis, CBD oil, hemp, and other cannabis products whether for medicinal purposes or otherwise. 

At the state level, it is currently legal to buy some type of cannabis products in 44 states. In late 2020, the house introduced the Marijuana Opportunity Reinvestment and Expungement Act, AKA the MORE act, to decriminalize marijuana at the federal level and remove it from the Controlled Substance Act. It did not pass in the senate, but the MORE Act served to begin the conversation. Currently, it is left up to the individual states to decide what is considered legal.

But, as mentioned above, 44 states and the District of Columbia have legalized cannabis products or marijuana at some level, from CBD oil to medicinal marijuana to recreational use. 

As it continues to gain legal status throughout the States (and maybe someday at the Federal level) and popularity, many merchants are looking for safer and more secure ways to take payments besides cash. 

Can Dispensaries Take Credit Cards?

Because of all the red tape surrounding the banking industry, not all dispensaries can take credit cards as payments. Provided that selling cannabis products is legal where you are, you can take credit cards as payment if you go with a processor who offers cannabis merchant accounts specifically. 

In the past, it has been difficult for CBD merchants or marijuana dispensaries to accept credit card payments because of the overwhelming difficulty to find a processor who not only works with various high risk merchant accounts, but also cannabis merchant accounts specifically. 

Although SAFE Act legislation was introduced in 2017 to help with banking in cannabis industries, it has not passed, but it is backed by big names in the banking industry. Many are hopeful that this bill will be reintroduced in 2021. 

Because of the discrepancy between the state and federal level, it’s proven to be frustrating for business owners. While there is a growing need for merchant service providers in the cannabis industry as it picks up steam across the country, the tendency for banks is not to back cannabis merchants and card brands have drawn a hard line in the sand and still will not allow merchants a transaction code for marijuana. What results is cannabis business owners usually have to deal with lots of cash and ATM machines – which is expensive and increases risk of robbery. 

Can I Accept Credit Card Payments for Cannabis?

Depending on the laws in your state, you can accept credit card payments for cannabis, CBD or hemp products with a Cannabis credit card processing account.” There are only a few processors who have Cannabis specific accounts, but they are available for this specific use.

So how can you accept credit card payments for your perfectly legal (check your state laws) CBD oil or hemp products? You find a processor that can work with you

What Does the Future of Cannabis Payments Look Like?

The future looks bright for cannabis merchants no longer having to accept only cash or debit cards for payment – or maybe some other strange work around. Your customers shouldn’t have to feel like they have to run the gauntlet for complicated workarounds just because they want to purchase products from you. You can now offer your customers a safe and convenient way to pay with a credit card when you choose to work with a company that offers cannabis credit card processing. 

More and more consumers who want to purchase cannabis and cannabis products are searching for dispensaries near them that accept credit cards. And  if you offer a virtual terminal to your clients for socially distanced order ahead, curbside pickup or delivery options, you’re ahead of the game. You don’t have to do just cash, cryptocurrency, or gift cards. With Shift Processing’s P2P system, your customers can simply swipe their credit card like at any other business. 

Who Is This Credit Card Payment Solution For?

Our solution is designed for recreational and medical marijuana dispensaries, normally classified as high risk merchant businesses that find it difficult to obtain a traditional merchant account for their business type. 

But maybe you know all this already. As we see with the high risk merchants who contact us, you’re probably used to being quoted outrageous swipe fees, hidden fees, bogus monthly fees, and made up annual charges just to take more of your hard earned profit. You’re wondering if it will be worth all the hassle to be able to offer your customers the ability to pay with a credit card. Will it really make a difference to your bottom line? Since numbers show that people will often spend more money with a credit card than with debit or cash, there’s a good chance that you will see an uptick in sales. 

The thing is that you don’t want to choose a merchant account provider that will make you feel nickeled and dimed with lots of add on fees and eat into your increased profits! Or worse yet, a processor who locks you into long term contracts and who is never clear on what exactly they offer. 
Luckily, Shift Processing already has a track record working with cannabis merchants and is ready to help business owners accept credit card payments for cannabis. We’d love to work with you to secure a cannabis merchant account without long term contracts or outrageous fees.

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