Acceptance of debit and credit cards is vital to your cannabis business as 75% of U.S. consumers prefer to use plastics when making a purchase. We'll guide you through the application process and help get your cannabis store running with a sustainable marijuana merchant account.
The regulatory landscape has made it impossible to find through traditional bank and card association channels as a legitimate, sustainable company. Within 48 hours, you will get your marijuana merchant account and run your business.
Accept All Card Types
Yes, you can accept Visa and Mastercard. Yes, you can get both debit and credit cards. With IPP, you can process payments with few limitations and offer your customer more payment options beyond just cash.
Until cannabis is Federally legalized, there is not apt to be a mainstream means of accepting payments at your dispensary. This limits your customer purchases to the cash they have on hand or what they can pull from an ATM. Fortunately, there is a solution that can help your customers spend more at your location. A cashless ATM or Point of Banking solution allows your customer to transfer money electronically into your bank/merchant account through the convenience of their credit or debit card.
Don't just take our world for it! Our merchants love that we're available and that we put them first.
Although there are some positive gains in the cannabis sector, dispensaries still have difficulties getting payment card processing. All major credit card processors, such as Visa, MasterCard, Discover, and American Express, still ban marijuana payment processing on their networks.
The reason for this prohibition is because of the federal legality status of the herb. Banks follow federal laws, so they will not engage in business with any cannabis company. Additionally, banks are unwilling to take the risk of incurring the wrath of the Fed and possibly losing FDIC insurance.
However, some banks willingly work with cannabis merchants. According to Treasury’s Financial Crimes Enforcement Network, over 630 financial institutions provide banking services to marijuana companies in 2019. Furthermore, some non-FDIC-insured local financial companies are underwriting these businesses. At IPP, we have relationships with these institutions and can help cannabis companies find partner banks.
If your dispensary has no banking services, the most convenient way to pay for a
cannabis product is cash. Customers can easily withdraw money from an ATM to
purchase their products. However, cash is considered riskier for your business. It
is proven that lower rate of repeat customers, only 25% of consumers prefer to
pay cash, which means the average purchase amount will be significantly lower
and lower overall revenue.
Many cannabis dispensaries install onsite ATMs to process payments. This option
allows customers to withdraw cash from their bank accounts. However, there are
many restrictions for the bank to open an ATM in recreational or medical
marijuana stores. Consequently, many marijuana merchants choose the
workarounds, which create the potential for bank fraud. Furthermore, the fee for
using ATMs for both marijuana merchants and customers is higher than usual
because of federal marijuana laws.
Mobile payment for cannabis is similar to PayPal, as it allows customers to
bypass ATM transaction fees. Usually, customers use a third party to proceed
with mobile payment. When a customer load money into the third-party payment, he/she can use this money to pay at contracting marijuana stores. However, mobile payment still has limitations as it depends on how large the third-party company is. Also, the setup for the consumer can be cumbersome, and the price to the merchant is usually expensive.
Recently, the federal government allowed marijuana shops to use high-risk payment processors to create credit card payment options. These processors apply encrypted technology to keep the transaction private. They will block customer's credit card information and encrypt it into form chains, allowed by federal laws.
First terminal is free
Monthly Transaction Fees:
Transaction fee – $3 - $3.75 to the consumer
We specialize in the high-risk merchant account, especially the marijuana related services, including:
Our accepting rate is 98% of all accounts, with no contract, no hidden fees, and the lowest rate.
Get started in 3 steps:
Provide required documents:
Application / merchant agreement
Valid photo ID
Articles of incorporation (articles of formation, organization, or incorporation)
EIN letter (Taxpayer identification number)
Copy of business license (if applicable)
Approval & Integration within 48 hours
Yes, mobile terminals are available for curbside delivery
Although the majority of marijuana merchants still run a cash business, 75% of customers prefer credit card payments. Furthermore, additional payment options allow customers different ways to pay for the products, which means more sales for your business. Besides, cash-only business has many problems with a higher risk of internal (employee-based) theft and robberies.
Using a credit card payment can increase your brand credibility and trustworthiness. It removes unnecessary, cumbersome steps for your customers while limiting the amount of product they can purchase based on their
cash withdraw. Therefore, it increases the number of repeat customers to your store, which increases your revenue.
The sign-up process usually takes 24-48 hours after we receive the required documents from you, including: