One of the everyday challenges facing cannabusinesses is finding a good cannabis payment processor. Even as more states lift their marijuana prohibitions, it can be difficult for cannabis businesses to find reliable and affordable merchant services. Traditional merchants don’t want to work with products that are still illegal at the federal level, and a lot of high-risk cannabis merchants charge a fortune in fees and commissions. Luckily, there are quality payment processors out there if you know where—and how—to look.
1. Look for a Payment Processor Specializing in Cannabis
The number of cannabis payment processors is growing by the day, so you have more options than ever to choose from. The best place to find them is in cannabis business directories. Search trusted directories like Ganjapreneur, THCbiz, and Cannabis Business Executive. Make a list of possible contenders.
2. Compare the Services
While we know that cost is a priority, don’t choose a payment processor based on cost alone. There are other important factors that must be considered. The following are some of the most important qualities:
- A full range of payment options (debit/credit, ACH, wire transfer, e-check)
- Point-of-sale capabilities (for brick-and-mortar businesses)
- PCI DSS compliant data protection
- Banking & merchant services
- Domestic vs offshore payment processing
- Hands-on technical support to help you integrate the payment solution into your website and business
- Online shopping cart integration
- 24/7 customer support
- Excellent ratings from third-party reviews
Most importantly, you want to work with a payment processor that offers full transparency. Be wary of any company that isn’t up front about how it handles transactions, especially high-volume transactions. You’ll want to speak personally to a customer service representative to learn about the business and ask questions. Don’t simply make a decision based on information you read on the company’s website.
3. Compare the Fee Structures
You’ll usually have to pay a transaction fee for every purchase. Look for processors that offer transaction fees below 6%. There are plenty of options out there, and we’re even seeing more processors with fees as low as 3.95%.
Avoid any cannabis payment processor that charges monthly fees on top of the transaction fees. Also, a high-quality payment processor won’t charge you setup or admin fees. Finally, make sure the payment processor imposes no hidden fees and no cancellation fees.
4. Know That You’re Not Locked In
When you find a cannabis payment processor that satisfies all the necessary requirements, give them a try. As long as you choose a company that doesn’t impose cancellation fees, it’s easy to switch services. So if you do find that you’re not satisfied, or if you find a better offer down the line, you can easily make the switch with minimal disruption to your business.
Start browsing the cannabis business directories and comparing services. If you dedicate a bit of time, you’ll find that there are some excellent, affordable payment processors out there. If you need help with your online solutions, speak with a cannabis marketing agency.