2020 saw how cannabis is being used to treat chronic pain, depression, and several other illnesses. This is just the start of the boom. It is estimated that the US cannabis market will grow to almost $30 billion by the end of 2025.
Despite being popular and used for treating illnesses, it is still illegal for the federal government. With several countries raising their voice in support of making cannabis legal, there is a big opportunity for entrepreneurs in the field of Marijuana dispensaries.
Thought, roadblock reaming in the path of the cannabis industry and people are still searching answers for why is cannabis credit card processing implemented?
What Are The Current Payment Option Available against Credit Card Processing?
People expect to see hassle-free payment options in the age where people look for convenience, one-click shopping, fast and free delivery.
Cannabis is not your regular industry where you can enjoy several payment processing methods, especially credit card processing methods. Cannabis is still an illegal substance for the FDA, and hence, credit cards cannot be used to make aunty cannabis purchases. So what others do we have? Let’s find out.
Cash is the simplest form of alternative to buy cannabis. However, using only cash caters to certain limitations for both sellers and buyers. If we see it from the buyer’s point of view, you can buy only as much as you have money in the pockets. And if you see a sellers’ perspective, you are missing to upsell customers.
If you are not visiting the dispensaries to make a payment, then the driver who would deliver the cannabis would carry thousands of cash while driving; this keeps the business potential at risk.
However, the bright side of this transaction mode is that most people use cash to buy stuff due to a lack of cards and bank accounts.
2. Bank Transfers
Bank transfer can be considered a middle ground for the business or dispensaries that don’t want to handle thousands of dollars in cash. Bank transfers are usually done with ACH (Automatic Clearing Houses) and involve transferring money electronically.
No checks, credit cards, debit cards, or wired transfers are involved in the ACH process. Since these kinds of transactions are electrical, businesses can easily identify the account and ensure that they have the necessary amount to make the payment.
The best part of ACH bank transfer is legal, secure, reliable, and very simple.
3. Debit Cards
Debit card processing payments are still uncommon in the cannabis industry. However, it has been seen that debit cards are a great option to make payments. This because you can only pay b with money you have in your bank account.
While making payments, the card reader will ensure that your bank account has sufficient amounts to make the payments, and if all the conditions are matched, the payment is initiated.
Yes, you can say it is similar to a bank transfer; however, that is not the case. In debit card payments, a card is involved in making payments. During the last couple of years, debits card have come out as one of their debts payment options due to its following features:
- Drive better business.
- Satisfies the customers.
- Cashless transactions.
The future is digital, right? If you believe what we just said, then there is a possibility that Cryptocurrency can also be used to make cannabis-related payments.
As of now, only a selected few stores or dispensaries are accepting Cryptocurrency as payments. However, there’s a possibility that Cryptocurrency will become a norm for buying and selling products and services in the future.
There you have it; alternative ways that can be used in the cannabis business. Right now, only these four payment methods are most viable for making cannabis payments.
We hope this information was able to help you find the answers you were looking for. If anything is confusing about this article, you can drop the queries down below.