Although
the sale of medical marijuana is now legal in 14 states as well as the District
of Columbia, these businesses often encounter great difficulty in obtaining
merchant accounts. Considered "high risk" businesses, dispensary
owners often face personal prejudices as well. Unfortunately, many banks just
aren't willing to consider opening a merchant account for the owner of a
medical marijuana store; they consider the legal due diligence to be too much
of a hassle.
Options Beyond the Banks
When
you consider that approximately 75% of the American population uses their debit
or credit cards regularly to make purchases, being able to process such
transactions can be critical to the success of many businesses. Granted, the
marijuana industry was strictly cash based until recently, but times have
changed. If your bank is unwilling to even consider offering you a merchant
account, it is time to look somewhere else.
Merchant
account firms are often more flexible and a number are now providing essential
financial services to the owners of legal dispensaries. Since most dispensaries
are still new ventures and they sell a medical product, they are, by default,
considered to be a higher risk. However, as long as the store owner has a
decent credit record and a clean criminal history, that will not necessarily
prevent them from qualifying.
A Word of Warning
One
concern you should have with regards to obtaining a merchant account for your
medical marijuana dispensary is that not every provider is the same. Business
owners in Colorado were recently surprised when their provider shut off service
without any warning. Make sure that you select a company with a reliable track
record.
3 Advantages to Credit Card Payment
Once
you have set up your merchant account, your business will profit from several
advantages. First, you will be able to take orders by phone or online -
completing the sale at the store and speeding your customers on their way.
Second, you will be able to hold less cash at the store, reducing the concerns
associated with a cash rich business. Finally, tracking sales will be
simplified as every purchase will show up in your evening balances.
If
you want to accept credit cards at your dispensary, skip the banks and head
online to find a company that understands the unique opportunities and
obstacles facing your business.
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