The legal status of recreational and medical marijuana dispensaries in the United States is very murky even with the legalization of these shops in many states in the country. In fact, the questionable legal status has led to credit cards companies like American Express, Visa and MasterCard to concluding these businesses are illegal. As a result, merchants are left with few options to process credit card payments for marijuana and related products.
Until this matter is fully resolved on the federal level, it seems that the processors for major credit cards will not approved merchant accounts for marijuana dispensaries. This is a policy that has left retailers with few options other than only accepting cash transactions. Payment options being limited and accepting only cash payments has also led to an increased risk of these types of retailers for robbery. Know How To Get A Replacement Social Security Card In Denver ?
The following list include the top providers for merchant accounts for marijuana retailers. When considering the firm stance that most banks have in place for this type of industry, it should be safe to assume that the following providers do offer some type of point of banking system as a main method for card acceptance for these types of vendors.
What Are Point Of Banking Systems?
Many of these merchant account providers have found loopholes or workarounds that are not reliant on the use of major credit card processors. The type of credit card processing that is used in this industry is generally made possible by a point of banking system. Here’s What To Do If You Lost Your Social Security Card
This system is also referred to as a ‘cashless ATM’, and it operates on the retail side when a customer enters their PIN number, however, on the processing side it is much different.
When the customer swipes or inserts their card, the payment processor acts like an ATM machine. The major difference is that cash is not physically withdrawn from the bank account. Instead, after the PIN number is entered, the customer must specify the amount of money they want to have taken out of their account for the transaction. The dollar increments are typically in amount of $5.
Generally, merchant services for marijuana dispensaries encourage retailers to add on a convenience fee. This fee is added to each transaction and helps to cover the cost of processing.
Based out of Los Angeles, this is a merchant processing company that specializes in high-risk e-commerce companies. It is willing to work with companies that have been denied from more traditional banks. These companies include:
Companies that sell adult products
Credit repair companies
The Transaction Group
This company is located in Jacksonville, FL. , and claims to offer merchant accounts for medical marijuana dispensaries. The website stipulates that these companies must have retail locations, and not have an e-commerce store only. However, there is no mention of point of banking systems on the website.
It is important for merchants to fully understand the services they will receive and if these services are legal or not. Look for companies that have a clean record with the BBB (Better Business Bureau) and ask questions for anything you do not completely understand to prevent future problems. For more information https://thesoutherninstitute.com/marijuana-credit-card-processing/ .