Due to the recent US crackdown on cashless ATMs cannabis payments span style=”font weight: 400 ;”>, dispensaries are scrambling for alternatives to this banking system. Dispensaries need to offer customers convenient ways to make payments. Consumers are increasingly choosing to pay with credit cards or debit cards. The cannabis payment landscape in America will remain complicated until federal legalization is achieved. This comprehensive guide to cannabis payment processing will help you better navigate the obstacles and set up your dispensary for success using the best digital payments solutions. Continue reading to get quick tips for handling cannabis payments in 2023.
Lower Cash Transactions and Risques
Although cash may still reign supreme in the cannabis industry’s cannabis sector, it is fraught with risks. Compliance must be the top priority in this highly-regulated industry. Cash can also limit your ability to retarget customers or upsell them. You can reduce cash transactions and avoid these risks:
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Theft of cash by robbers or employees, customers, or customers.
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Accounting and cash count errors.
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Untraceable cash can cause compliance problems in Inventory.
Encourage Digital Payments
Instant reporting capabilities, which are available with digital payments, allow cannabis retailers to gain a better understanding about their business performance. Customers will appreciate a convenient and modern shopping experience. This is an advantage in the cannabis sector. Encouragement of digital payments has many benefits.
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Customers get a better dispensary experience.
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Safety and security are improved for all.
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Tracking, Reporting and Easy Banking.
Get the Most Out of Going Cashless
Cashless sales will bring you a huge increase in revenue and sales. Cashless customers are more likely to purchase more because they don’t have to worry about cash limitations. Budtenders also tend to be better equipped to sell. Cashless payments are a common method of payment in dispensaries.
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Minimum 25% increase of average transaction value.
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Customer loyalty and retention increased.
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Improved operations and data insights.
Select a Compliant Payment System
Although there are many cannabis cashless payment options available, not all of them can offer the same level of safety, security and compliance. You should ensure that the multichannel payment solution you select integrates seamlessly with your cannabis point of sale (POS) and is compliant with all laws. The following must be included in a dispensary cashless payment system:
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Debit Payment by PIN: The most compliant.
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ACH Electronic Transfer: No-cost direct payments.
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Integration with loyalty or gift card programs.
Cannabis eCommerce and Delivery
Dispensaries should consider offering delivery and eCommerce services to customers in order to provide them with the best and most efficient way of purchasing cannabis products. Customers can browse and purchase products online with the convenience of home delivery. These services reduce cash transactions as customers can pay digitally with a compliant cannabis payment solution.
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Create an eCommerce website using a cannabis-specific platform. It integrates seamlessly into your POS system.
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You can use cannabis-specific software to create compliant delivery services, or outsource to third party delivery companies.
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Dispensaries need a secure digital payment system to comply with all regulations. This can only be done by using a cannabis-specific payment processor that integrates with your eCommerce platform.
Bonus Tips
These are some more tips to navigate the cannabis payments landscape.
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You might consider implementing a loyalty program in order to increase repeat customers and sales.
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To avoid downtime or delays, ensure that your payment system can process large volumes of transactions.
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Keep up to date with the most recent regulations and compliance requirements for cannabis payment payments to avoid legal problems.
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Customers have multiple payment options, including debit and credit cards and ACH transfers. This allows for greater flexibility and convenience.
Conclusion
Dispensaries need to adapt to changing payments in order to stay competitive in the cannabis industry. Dispensaries can provide customers with a safe and convenient way to buy cannabis products, while also complying with federal and state regulations.
Digital payments make it easier for dispensaries to earn more money, improve customer experience and allow them to expand beyond what cash can do. You can make it easier for customers to check out at your dispensary by using a transparent, compliant, and secure cannabis cashless payment system. To learn more, visit the Cova Software cannabis payments processing guide.
Gary Cohen is Cova Software’s CEO. He is the fastest-growing technology brand in the cannabis sector. Cohen is responsible for driving the company’s overall strategy including its vision, go to market plan and strategic development. Cohen joined the cannabis industry in 2016, and launched Cova commercially in the 4th quarter 2017. Cohen has helped Cova dominate the enterprise sector for dispensary point of sale, while establishing client relationships with hundreds of single store retailers across North America.
Cova’s cannabis POS, which integrates seamlessly with eCommerce and delivery services and automatically displays the order online for the budtender. Once payment has been approved, inventory is updated by the POS system. Cova has many eCommerce options to suit your needs. You can sell legal cannabis online without worrying about compliance with government regulations.
The National Cannabis Industry Association published the post Member blog: How to Navigate The Cannabis Payment Landscape in 2023.
