Expand Payment Options For Cannabis Products

21 October 2022
 Categories: , Blog

Offering consumer-friendly payment methods that allow consumers to purchase medicinal marijuana or recreational marijuana could increase a business owner's sales. The use of electronic banking processes will reduce the need to handle a large amount of cash each day. This could result in time savings and less human error.

Cash Payments

Accepting cash payments is a practice that business owners follow each day. Although accepting cash as a viable payment may be a process that any dispensary owner or cannabis retailer may continue to utilize, there may be some issues with restricting consumers and only allowing them to pay cash.

A customer who does not have a lot of cash on hand may not be able to purchase the amount of cannabis that they initially intended. This could ultimately result in a business owner not making as much money as they could if they offered other forms of payment.

In addition, only allowing cash payments could mean that a business owner will need to count up large sums of paper and coin currency each day. Having a lot of cash on hand could place a business owner in a risky situation. If any miscalculations are made while counting cash that is collected, a company's business records will not be accurate.

A Third Party Merchant

ACH transfers and point of banking sales are two electronic payment methods that may be offered through a third party merchant. A merchant who is compliant with cannabis sales processes can guide a business owner in setting up a system that will grant them the right to offer electronic payment methods to their customers. A business owner will need to invest in a card reader, which is necessary for accepting electronic payments.

A consumer may need to register with a third party merchant. This step will need to be conducted first, prior to paying for cannabis products. Because cannabis laws differ from state-to-state, a business owner must adhere to the laws that are upheld in the state that they sell cannabis products from.

A third party merchant will consult with a business owner and discuss ways that they can expand the types of payments that they accept. Some payment processes may come with a surcharge that a consumer will be responsible for paying. A consultation with a merchant will familiarize a business owner with the exact manner in which electronic payments will be processed.

Reach out to a company like Paybotic to find out more.