The medical marijuana business is booming rapidly in states where it is legal. However, dispensary owners lack a large scale solution for Marijuana Dispensary Credit Card Processing. Recreational and medical cannabis is still federally illegal. Therefore banks and merchant processors keep away from doing business with firms that clearly identify themselves as dispensaries. Some dispensaries handle 700 to 800 patients daily, but most can’t accept credit cards because they can’t get a merchant account. Without access to banking and credit card processing, most marijuana entrepreneurs continue to operate on a cash basis. This is the situation with Marijuana Dispensary Bank Law:
Medical Marijuana Dispensary Laws are Extremely Dangerous
Medical marijuana laws have been passed by 23 states including District of Columbia. Among them, Washington and Colorado State allow cannabis for recreational use. Once marijuana becomes federally legal, the payment processing situation for dispensaries will change quickly. Many observers and industry players know that keeping lots of cash on hand puts recreational shops and dispensaries at risk of record keeping snafus, robbery and internal theft. Eager to make a safer profit from the fastest growing legal marijuana market, these dispensary business owners are looking for new approaches, like the following…
Cashless ATM Systems for Marijuana Dispensaries
Some industry players set up cashless ATM system, which allow dispensary consumers to pay with a debit card. This is an effective solution because the processing system used by the ATM network is different. Debit card users at dispensaries need to pay a $2 fee, just like the other ATMs. When a customer swipes their card on the terminal and enters their PIN code, the fund from his cash account will go to the cash account of the dispensary.
Credit Cards for Marijuana Dispensaries
At first, major credit card companies were not ready to process transactions for state legal marijuana businesses. But the US Justice Department announced in August 2013 that it would not try to challenge the state laws, which allow for recreational and medical use of marijuana. Laws did not conflict with 8 new federal enforcement policies, including preventing the distribution of cannabis to minors. So the industry is moving forward. If you are in need of marijuana dispensary credit card processing – or other marijuana dispensary banking solutions, please inquire within!
Lack of Capital – but Not Cash
Capital has significant role in the growth of all business including marijuana business. However, medical marijuana dispensary owners are facing difficulties because they are not getting loans from banks. Just like credit card companies, banks also adhere to strict decisions for marijuana industry. Personal bank accounts can be used for making transactions, but it is also not a long lasting solution. The medical marijuana industry is operating primarily on cash and it has been a cash-based business since its beginning.
Marijuana Bank Laws
Prevailing medical marijuana bank laws will change soon, we are confident, but it is like waiting for the tide to come in or a pot to boil. This is the reason we are providing every marijuana dispensary ATM option possible. We will also provide credit card processing and/or banking referrals for Marijuana Dispensaries when the laws change. Once marijuana becomes federally legal, and it will, competition in this field will become fierce. State and federal officials have a powerful incentive to regulate this industry – to collect taxes. This should be the force that changes the laws sooner than later.
Negative banking policies in regards to Marijuana Dispensary Credit Card Processing service are affecting the medical cannabis industry adversely. While there are lots of alternative payment solutions, the best options presently revolve around ATMs for marijuana dispensaries, which is our specialty.
Here you can see that some banks are working with marijuana businesses – if you are ready to find out which ones, then let’s get you set up starting at our Marijuana Banking Solutions page!