by Stuart Lutterman Brother Processing Solutions
In the last few years, accepting money to license and legal cannabis dispensaries was like the wild west. The banking system in the United States for marijuana businesses can be confusing and difficult to organize. Many shops still accept cash payments for the majority of their payments. This should change in 2023. Many dispensaries don’t have access to debit card processing, which allows them to sell cards. However, this is a problem. We’ll be looking at signs that it is time for you to upgrade your cannabis debit-card processing provider.
Processing Fees and Rates per Transaction
You should first look at the processing fees and per-transaction charges for your dispensary. Merchant service providers have been lowering rates in order to remain competitive. This has made it more difficult for dispensaries to be competitive. However, many cannabis merchant services charge higher rates and have higher per-transaction fees that businesses should pay in 2023.
The days when dispensaries and cannabis accessory shops were considered “high-risk” have long passed. Direct deposit times that exceed one business day, high cash reserves for your processor and fees beyond regular processing fees are signs it is time to change.
Why offer credit & debit card processing
Dispensaries without a cashless payment option might limit the product they can sell to patients or customers who visit dispensaries to purchase a product. Consider this: A patron walks into a dispensary with $80. They expect to spend $80 total on cannabis. They are tempted to buy more cannabis than they actually need. They only have $80 cash on hand. There is no ATM near them and there isn’t a card-paying option at the dispensary. The dispensary loses more business and the patron or patient is disappointed.
As business owners, this is not the place we want our customers to be. If they are interested in purchasing the product and have a desire to purchase it, you should be able meet them halfway and provide additional options.
The Point Is…
Cash-only payments are a losing strategy for dispensaries. How many times have customers been in this situation? Customers come to your dispensary to browse the menu. You can make a few choices but the time comes to pay. Your dispensary accepts cash only and the customer does not have cash. You don’t accept any type of card payment so you shouldn’t be leaving sales open (literally). Installing POS systems is easy and often free. You don’t have to make cash deposits at banks or install a cash management system for staff control. This is a win-win situation for both dispensary owners as well as accessory businesses. It is absurd to not offer card payment options in 2023.
The Benefits of Changing Your Merchant Service Provider
There are several reasons you should upgrade your processor. Let’s take a look at
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Get new and improved processing rates
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eliminate per transaction fees
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Upgrade your card reader and use touchless payment options
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allows customers to make bigger purchases
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Reduce cash expenses and improve customer service
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customers receive higher prices
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improve direct deposit time frames
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Increase sales volume and profit margins
Customers will feel confident in purchasing cannabis when they have access to all payment options. This will increase their likelihood of returning.
Search for the best Cannabis Merchant Service in the U.S.
There are many merchant services out there, but very few that specialize in the cannabis sector. It is not like other industries, so working with a cannabis-specific business makes sense. It is not a good idea to work with a large bank that looks for ways to charge fees and make moral judgments. The entire cannabis industry should think about working with smaller, more focused companies.
Brother Processing Solutions (BPS) is owned by Stuart Lutterman, the founder. This family-owned business has more than fifteen (15!) years of experience in the Merchant Account/Credit Card Processing business. BPS also specializes in selling both Indigenous-owned and recreational cannabis businesses. BPS works closely to each client, listening to their needs and offering a point of contact for financial services. https://BrotherProcessing.com
Cash-only payments are a losing strategy for dispensaries. How many times have customers been in this situation? Customers visit a dispensary to browse the menu. You can make a few choices but the problem is that your dispensary doesn’t accept cash. This is a common problem that we made a commercial about.
The post Member blog: Credit and Debit Card Processing at Your Cannabis Dispensary was first published on The National Cannabis Industry Association.
