Cannabis Payment Processing You Need To Know
Cannabis as the world knows it refers to the group of plants that have psychoactive features known as cannabis Sativa, cannabis Indica also cannabis ruderalis. The flowers of these plants are processed by harvesting and drying.
After processing Cannabis, what you are left with is the most commonly used drug in the world. Some people call it a weed, pot, and marijuana. Though Cannabis is illegal in many places, legalization and recreation in some parts have given scope for the cannabis business for medicinal purposes.
What Is Cannabis Payment Processing?
The subject of cannabis payment processing solutions becomes a matter of frustration and exasperation many times. Legal cannabis merchants working in licensed dispensaries in European countries mostly accept only cash.
This leads to a lot of disruption and corruption. However, some merchants do offer card payment methods that are funded with cash. This is similar to debit. Or the other best practice is cannabis payment processing with cryptocurrency. The advantage is that through both the payment methods, merchants receive electronic funds within 24 hours.
A digital wallet or debit card fund transfer scheme ensures monetary safety and work out even for hemp and CBD oil product payments. If you closely look into the cannabis payment processing transactions, this is how it happens:
- Customers/merchants/patients connect their cards with digital wallets.
- A fund transfer/transaction is made with the necessary amount into the merchant wallets.
- Customers/merchants/patients make a legal purchase through a licensed dispensary.
- The merchant receives electronic funds within 24 hours for the products.
Cannabis Payment Processing Through Crypto Currency:
Cryptocurrency is considered to be the safest method of payment where the legal matters kick in, especially in the European market where 78% of the merchant businesses relating to variant products are carried out in cryptocurrency.
Most European countries like Austria, Czech Republic, and the Netherlands and many more benefit from such a payment method immensely. As credit card payments for cannabis payment processing are next to impossible, cannabis merchants turn to cryptocurrency payment methods.
With the recent collaboration with many payment gateway platforms, merchants can furnish cannabis payment processing with POS countertop devices and a separate cryptocurrency ATM. These platforms have the following features:
- Conversion of cash into cryptocurrency and vice-versa.
- Real-time withdrawals for an easy point of sale payment.
- Biometric security like fingerprint and face scanning.
- Software integration with automatic teller machines.
- Devices that intelligently recognize cryptocurrency forms which include bitcoin, Ethereum, and digital wallets like blockchain apps.
How Does Cannabis Payment Processing Through Cryptocurrency Work?
This is how cannabis payment processing through cryptocurrency works to ensure utmost safety and transparency in payments.
- Consumers need to scan a QR code of their digital wallet on the screen of the point of sale or through an ATM device.
- The value of the digitally entered currency is calculated in real-time.
- A consumer receives the correct amount of cash or cryptocurrency to pay for transactions.
- The customer receives the confirmation invoice receipt as proof of the transaction is complete.
- The merchant gets funds with 24 hours in their wallets.
This entire process of cannabis payment processing through cryptocurrency eradicates the need for immediate cash transactions and payments are directly released in digital wallets.
What Are the Hurdles Faced During Cannabis Payment Processing?
Many progressive European countries, including Romania, Spain, Poland, and more have legalized recreational Cannabis in different forms, growth. However, its use and regressive sale remain illegal under federal laws to some extent.
This forms the most significant hurdle or obstruction for cannabis merchants and the related banks and payment processors. The marked cards that bridge the gap of payments are Mastercard, Visa, Amex, and discover. Moreover, Cannabis remains a schedule 1 drug along with heroin, ecstasy, LSD, and peyote.
Most of the banks are supported by the Federal Reserve, and they refuse to offer cannabis payment processing solutions for medicinal or recreational purposes. Few of them are open to providing their services. Even some of the most prominent digital wallet names in the world supporting international transactions do not allow the initiation of payments for Cannabis.
This is the second most significant hurdle for cannabis merchants, who are in desperate need of a more straightforward payment solution with safety and security.
The Cannabis Payment Services Of Your Dreams – Cheaper/Faster Than You Ever Imagined
CBD or cannabis businesses are the pool of money minting industries. And with the farm Bill 2018, the hemp and cannabis are federally legal. To take possible advantage of the massive opportunity in the CBD or Cannabis industry is to develop a high-quality legal product and follow the regulations set by the FDA. Though it is legal and having a pool of opportunities, it faces challenges while opting for a Cannabis Payment Services.
There are very few processors who deal with these industries because of the risk associated with it. And it’s quite a big challenge to get one of the best solutions for your CBD business. Nevertheless, Quadrapay can help you with Cannabis payment Services. We have partnered with processors from the USA, Canada, European Union and other global companies. We have 25+ processing partners, who will most probably let you with smooth onboarding. Get ready to grasp the opportunity with the right approach. In the coming years by 2024, the global market size of CBD Industry will reach US$ 760 million. You can read the report here.
Why Does the Cannabis Industry Require High-Risk Merchant Services?
The cannabis or hemp-based industries are flying high and high. Most of the nation legalised the cannabis-based product following the FDA rules and regulation. Though still it is considered a high-risk industry. The acquiring banks considered cannabis business as high risk and thus, merchants have to face challenges to get a payment solution. Some of the reasons why it requires high-risk merchant services are:-
- High Sales Volume
- High Chargeback Ratio
- Large Ticket Size
- CNP Transactions over 15%
- Cross Border Business and some more reasons.
Though it is a high risk, still Quadrapay helps merchants from your industry type. Our payment processor has many solutions for you, and if one doesn’t meet your business needs, we can offer you another. Some of the merchant services which are asked by merchants from your industry are:
Do you also want to dip your hand in the pool of opportunity? Fantastic! This is the time to start accepting payments online for cannabis-based products. We will help you to get fast approval for merchant services. To get started, fill the pre-approval form onto our site, and we will get back to you shortly to help you further the on boarding process.
Merchant Account for Medical Marijuana
Currently We do not have any Payment Processing Options for this Industry Type
This is pretty straight forward. You dispense marijuana (cannabis) that is legally prescribed by a certified doctor to patients that need their medicine. The problem is That most of your customers want to pay by credit card, but unfortunately, you only accept cash. It’d be nice if you could accept those cards, would not it?
There is an obvious and legitimate need to credit card processing and merchant account services for dispensaries, so I figured I’d at least try and point you in the right direction.
Just keep in mind that this is still a high-risk category for most providers. So, don’t expect the best terms in the world.
Few people are unaware of the fact that the sale of medical marijuana is now legal in a number of states and in Washington, D.C. itself. This turn of events was heralded as a disaster by some, “about time” by others and with mixed emotions by more than a few. Still, as legal businesses, medical marijuana dispensaries have a legitimate need to process credit cards in their stores. But what about the Internet? Merchant account are not going to provide those services just yet.
Selling medical marijuana products online requires the ability to adapt to unique nuances of these industries and to stay protected from some of the challenges that arise from selling these types of products online. In some cases, these merchants need to work with a merchant account provider that offers offshore merchant accounts, load balancing and additional e-commerce solution to streamline the payment operation and optimize transactions.
Since charge-back can be particular nuisance for regulated industries, merchants should make sure their merchant account provider offers tools and solutions to help mitigate and reduce charge-backs. Receiving too many charge-back leads to fines and penalties from the card brands as well as potential account termination. It’s important for merchants to work with a merchant account provider that not only facilitates online credit card payments, but one that can help guard against charge-backs and act in n advisory capacity if charge-backs become a problem.
Merchants in the medical marijuana product category should be thinking about how e-commerce can positively impact sales. The key to getting started is finding the right payment processor that specializes in high risk merchant accounts. Working with a processor who has experience in the medical marijuana space specifically can also add value as these processors may also be able to recommend on a number of secondary considerations like fraud and charge-back prevention.
Is It Possible To Get A Marijuana Merchant Account For Credit Card Processing?
As per our understanding, POB/Echeck are excellent alternatives to Marijuana Merchant Accounts that may work for legal marijuana dispensaries in the United States. We assume that it will take a long time for people to get a credit card processing for Legal marijuana sales.
Extended List of Cannabis Trade Associations
Minority Cannabis Business Association: The Minority Cannabis Business Association (MCBA) was founded in 2014. It is the first non-profit organisation which was created in for advancement of the cannabis industry by adding diversity. The goal of the association is to serve the minority association with education, equality and equal opportunity. You can grab more information at http://www.minoritycannabis.org
The National Cannabis Industry Association: In 2010, The National Cannabis Industry Association was established. It is a non-profit organisation which operates in the United States Of America. The association was founded by Aaron Smith and Steve Fox. They have their office in District of Columbia and another one in Denver, Colorado. NCIA is the topmost cannabis trade association in the U.S. In January 2013, NCIA had done with 118 member businesses. In January 2014, NCIA had done nearly 400 member businesses, as of July 2017, NCIA had done business with nearly 1,400 members. And In June 2019, NCIA reported nearly 2,000 member businesses. You can grab more info at https://www.nacb.com.
The Cannabis Alliance: The Cannabis Alliance is a non Profit organisation. The main aim is to provide a positive impact of the cannabis industry through education, advocacy and promotion. This organization focuses on the advancement of a sustainable, vital and ethical practices in the cannabis industry. Some of the initiatives of the Cannabis alliance are :
- Waste Reduction.
- Social Equity.
- Patient Access.
To know more about the Cannabis Alliance Association visit https://thecannabisalliance.us
The Cannabis Trade Association. The Cannabis Trade Association. Established in 2016 is a non-profit Association. The head Quarter is in Hull, Yorkshire. The Cannabis Trades Association (CTA) is the only cannabinoid centric trade association in Europe. It works in all sectors of the cannabis and hemp industry to encourage the consumers and players. In view of that time, they were working with the MHRA and the FSA as a recognised partner to the official guidance given by both authorities as well as working with many local councils and law enforcement agencies up and down the country. They are the largest Hemp and Cannabis Association by Membership in the world, representing over 7000 businesses and working with the Government to establish law enactment to ensure the industry has proper and effective guidance. To know more about The Cannabis Trade Association visit : https://cannabistrades.org/
The Centre Of Medicinal Cannabis. The centre of medicinal Cannabis was founded in 2018 and is a non-profit association. The head Quater is in London, London. They have come together as a group of campaigners, philanthropists, scientists, public policy experts and educators to advance responsible, ethical and evidence-based access to medicinal cannabis. The Centre for Medicinal Cannabis (CMC) is the UK’s first and only industry membership body for businesses and investors who are working in cannabis-based medicinal products (CBMPs) and cannabidiol (CBD) wellness markets. They have a unique competence to engage intelligently and strategically with all influential political and public policy stakeholders as well as all the connected regulatory bodies. To know more about The Centre for Medicinal Cannabis (CMC) visit: https://www.thecmcuk.org/
THE HIA. The Hemp Industries Association HIA was founded in 1994 and is a non-profit association representing more than 1500 business members. The headquarter is in Summerland, California. The mission of the Hemp Industries Association (HIA) is to represent the interests of the hemp industry and to encourage the research and innovation of new hemp products. The Association is totally dedicated to education, industry development, and supply and demand of hemp world market but is focused on the rebirth of the hemp industries in the United States.
The HIA recognizes the following collaborative partners:
- U.S. Hemp Roundtable (USHRT)
- American Herbal Products Association (AHPA)
- United Natural Products Alliance (UNPA)
- U.S. Hemp Authority (USHA)
- The HIA is Associated with the following entities:
- Plant-Based Products Council (PBPC)
- American Society of Association Executives (ASAE)
- Organic Farmers Association (OFA)
- American Society for Testing and Materials (ASTM)
- The HIA recognizes the following international hemp association partners:
- Canadian Hemp Trade Alliance
- Indian Industrial Hemp Association
- British Hemp Association
- European Industrial Hemp Association
- FAAAT
To know more about The Hemp Industries Association HIA visit: https://thehia.org/
CBDIA. Celeste Miranda founded the CBDIA who leads Celeste Miranda & Associates as well as MACE Media Group (MMG). The CBD Industry Association (CBDIA) captures the continuous development and explosive growth as the cannabinoid industry’s leading trade association. They deliver essential resources so that those involved in the industry can share their knowledge and experiences of the real world. CBDIA look after and advances enduring success and awareness.
Some of the benefits you will get after joining the CBDIA membership :
- CBDIA members receive industry recognition like CBDIA Membership Certificate, Free use of CBDIA Member logo, CBDIA Featured Member Profile.
- CBDIA members receive professional engagement like Annual boot camp invitation, Participation in committees, Annual boot camp invitation and more.
- CBDIA members receive free subscriptions of CBD Health & Wellness Magazine and Cannabinoid Journal of Medicine.
- CBDIA members receive privileged access to Member-only directory, Member-only professional development courses and many more.
- CBDIA members receive a massive discount on ads in CBD Health & Wellness Magazine, CBD training certification.
To know more about CBDIA visit: https://cbdindustryassociation.org/
The American Trade Association for Cannabis & Hemp (ATACH). Registered in Washington, DC, The American Trade Association for Cannabis & Hemp (“ATACH”) is a 501(c)(6) trade organization founded to promote the protection, expansion and preservation of businesses involved in the legal trade of medical, industrial and recreational cannabis and hemp-based products. The American Trade Association for Cannabis & Hemp (ATACH) is a place for leaders of hemp and marijuana industries and well known, well capitalized businesses who are entering the industry, to promote marketplace expansion, develop regulation, and adopt industry standards. To know more about The American Trade Association for Cannabis & Hemp visit : https://atach.org/
National hemp Association: National Hemp Association was founded in May 2014 with the aim to support the use hemp and grwoth of the industry.
They accomplish the goal by :
- Making the people aware of the health, environmental, and economic benefits through education and spreading information.
- By building a community of individuals, businesses and organizations to facilitate the growth of the industry.
- By working collaboratively with industry, government officials, and the scientific community to create and implement industrial hemp standards, certifications and regulations.
- NHA provides different membership plans based on individuals or business needs. Some of the benefits include Receive monthly newsletter.
- Receives timely action alerts.
- Discounted admission to NHA events.
- Access to all section of websites.
- Listing of business member website page etc.
- There are a lot more benefits you can have after availing the membership plan based on your need.
To know more about National Hemp Association (NHA) visit: https://nationalhempassociation.org/
The motive of this blog is to make you aware of the various associations for Merchant of CBD oil industries You can research more and can become a member of any of the association which you finds better for your business. Doesn’t rely on the association mentioned above, there are more associations which you can research by yourself.
Conclusion:
Cannabis dispensaries which have a legal system for the same rely primarily on cash transactions. These dispensaries merchants are made to make large cash deposits every day. This possesses an excellent problem for cannabis payment processing due to the lack of digital wallets. A solution to this is the most awaited and matter of concern for merchants. Now apply for the best CBD friendly payment processors with Quadrapay.
Disclaimer: Although we have taken enough care in making this article as accurate as possible but in case if you find any discrepancy then email us on [email protected] for corrections, suggestions and requests. We will try to honour those requests and suggestions.
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