A story About Two Dispensary Owners
There are two marijuana dispensaries in a city
They are both owner operated with a great selection of cannabis products. They both have competitive prices, great atmospheres, and are in prime locations. But that’s where the similarities end…
Let’s look at the owners.
John is struggling
He rarely gets a day off. He is overworked and underpaid for his efforts. He spends too much time counting and hiding money in his all cash operation. Unending trips to suppliers, utility companies, and other vendors with dangerous amounts of cash on hand. John has had several merchant accounts over the years; however, they were all closed down. He suffered a significant loss when one was canceled. John’s sales rep was actually miscoding his business (providing fraudulent information to the credit card processor) in order to gain access to a merchant account. What makes matters worse is when John was found out by the credit card processor they not only closed his account but held all outstanding settlements and John still has not received those funds. Additionally the acquiring bank associated with John’s ATM provider discovers the ATM was in a dispensary and that John was loading the machine with cash from sales of marijuana and decided it could no longer afford the risk. This part of the story is very depressing because John’s business lost 40% of its revenue virtually overnight. Unfortunately John’s story is all too common.
Across town is Ashley
Business is good! Ashley has access to a cannabis credit and debit card solution that does not require any funny business (miscoding). The solution Ashley uses does not break any of the card brand rules (Visa/MasterCard/Amex/Discover) and she can accept all cards at very low rates. She paid no setup fee, no monthly fees, no monthly minimums, no cancellation fee and best of all there is NO Risk! Ashlee receives her deposits in a timely manner from a US FDIC insured bank. There is no chance that Ashley’s merchant account will ever be shut down as it meets or exceeds all FinCEN, BSA and card association rules and requirements. All Ashley has to do is keep operating her business with the integrity and honesty she always has. By the way… Ashley’s average ticket size on credit transactions is 30% higher than her cash sales with the same amount of effort. This increased her profits without incurring any more expenses. Not to mention all the new customers she has attracted because customers want the option of purchasing with credit cards.
Well as Ashley is planning her second vacation this year, John is wondering how much longer he will be able to cover his overhead and keep his doors open. Both owners work extremely hard but it seems Ashley is working smarter than John and has access to much better technology and business solutions than John does.
If you think Ashley’s approach to managing her dispensary and marijuana merchant account makes sense and maybe she is on to something good please reach out to the industry advocates at Naturepay. They are working hard to move the cannabis industry forward into the mainstream where it belongs and there’s a good chance they can get you set up with the solution Ashley is using.