How Cannabis Dispensaries Can Take Card Payments Without Paying A Fortune In Fees
This has been a huge problem for cannabis dispensaries in all legal states. Banks don’t want the risk involved in supplying a normal merchant account to cannabis businesses because cannabis is still illegal on the federal level.
Some solutions are being used to process credit and debit card payments for cannabis businesses but they’re unreliable and also very expensive, often charging between 5-15% transaction fee!
This has forced cannabis businesses to deal mostly with cash, which is a huge hassle. For starters, they need to worry about physical security more due to having so much cash on hand. This puts everyone’s safety at risk!
Second, due to the pandemic, people are trying to avoid cash payments simply because it can harbor and spread disease. Now, I’m not sure how likely you are to get sick from handling a dollar bill but cash is widely considered to be ‘dirty’ even before this whole pandemic started.
Third, when processing credit cards you take the risk of having a chargeback. While cash may be dirty, it does have the added benefit of ‘all sales being final’. Wouldn’t it be nice if you could bring this great cash feature into the digital payments realm?
“So what are you asking me to use Steve? Don’t tell me it’s Bitcoin!”
Cryptocurrency like Bitcoin avoid a lot of these problems cannabis dispensaries are facing yet introduces a new problem; nobody owns Bitcoin to pay with.
Fortunately, some crypto nerds have put their heads down to think of a good solution here. What if paying a merchant with Bitcoin was as easy as downloading an app, adding your credit/debit card and scanning a QR code.
The customer wouldn’t even have to know they were using Bitcoin.
Nor would they have to worry about storing it or worry about taxes since they’re essentially buying and selling at the same time, producing no gains or losses.
This type of functionality can now be achieved with a new app called Strike by Zap. Learn more about it here. It’s currently in closed beta but development is moving fast!
Yes, the merchant would have to deal with Bitcoin but they can settle for USD at the end of each business day to avoid volatility. No more dealing with cash, chargebacks, high transaction fees, and finicky banks.
Financial Disclaimer: I am not a lawyer or tax specialist so this should NOT be taken as financial advice.Tweet