A cannabis credit card processor is a financial service provider that specializes in handling electronic payments for companies in the hemp space. As a result of federal regulations and restrictions, these payment processors offer businesses operating in the cannabis industry sustainable merchant account solutions.
How Do Cannabis Credit Card Processors Work?
Cannabis payment processors understand the regulatory nuances associated with the burgeoning industry. Every year laws change and more states open their doors to hemp-related sales. For cannabis businesses, credit card processors find the best way to help you accept payments.
As you may find when looking for a merchant account provider, cannabis falls into the category of high risk . Accordingly, high risk processors look into the details of your transaction history, website, and sales process in order to qualify you to accept credit cards.
Moreover, they may suggest technologies that verify age, or recommend changes to your website in order to ensure compliance.
Credit Card Processing Restrictions for Cannabis
Cannabis payment processors are subject to certain restrictions on the state and federal levels. The sales agents you contact will be able to detail the specific rules based on what you’re selling and where you’re located.
Nonetheless, businesses using payment processors may face legal and financial risks if they engage in any activities that are illegal under federal law, such as selling marijuana in states where it is still illegal, so be sure to adhere to the standards set out by each entity.
What To Look For In A Hemp Credit Card Processor
Your main objective is to find a legitimate banking entity or registered ISO that has experience dealing with the cannabis industry. In addition to evaluating the processor’s reputation, compare their customer service, overall fees, and gateway solutions. Don’t be afraid to ask for references or read reviews from other hemp-related businesses.
Fees For Your Marijuana Merchant Account
Cannabis credit card processing fees vary depending on your risk profile. For example, if you’ve been in business a long time and have a large number of high volume transactions , you’ll have lower fees.
Moreover, the types of fees can change. Some processors charge a transaction fee , a setup fee, a monthly fee, or a chargeback fee. In addition there will likely be money you have to send to a reserve account.
Sustainable Payment Processing In High Risk Vertials
The best way for businesses to find a sustainable cannabis payment processor is to shop around online. It may also be beneficial to work with a consultant or attorney who specializes in the industry who knows the laws associated with your products.
What Types Of Payments Can I Accept?
There are a variety of payment methods available for ecommerce stores in the hemp industry. From credit cards to debit cards, e-checks , ACH transfers, and cryptocurrency. Keep in mind your business’s payment methods may vary depending on the processor and the state’s regulations. Ensure your customers have the easiest means available to make a payment.
What Are The Alternatives To Credit Card Solutions?
A cannabis payment processor isn’t the only option; there are also cash-based payment methods and cryptocurrency solutions popping up every day. Be sure to weigh the cost and benefit of different payment methods. If you have a few options available for different customer types, you’ll be able to keep your cannabis business growing.
Table of Contents
- - How Do Cannabis Credit Card Processors Work?
- • Credit Card Processing Restrictions for Cannabis
- - What To Look For In A Hemp Credit Card Processor
- • Fees For Your Marijuana Merchant Account
- • Sustainable Payment Processing In High Risk Vertials
- - What Types Of Payments Can I Accept?
- • What Are The Alternatives To Credit Card Solutions?