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Is It Time To Change Your Cannabis Merchant Services Provider?

By Chase Nightingale

The cannabis industry is not your typical retail space. It is burdened by a diverse range of challenges, primarily due to the legal frameworks it must adhere to. Knowing when to change your business’s cannabis payment processing provider can be tricky. Within the cannabis industry, there are a multitude of businesses available to partner with. There are many reasons why dispensaries may change who processes their card transactions. Here, we’ll examine some prevalent factors driving dispensary owners to make such provider transitions.

1. Burden of High Transaction Fees

A well-known principle in business is the concept of spending money to earn money. This principle applies in various facets of your operations like logistics, stock management, training, and banking. A crucial area is the cannabis payment processing services for your cannabis business, enabling you to diversify your payment options beyond just cash transactions. Whether you operate a physical store or are an online retailer, you’ll need a way for people to pay you outside of hard cash currency.

However, some cannabis payment solutions providers impose exorbitant transaction fees, poor processing rates, and high costs for point-of-sale (POS) terminals. With cannabis legalization across many states in the U.S. and throughout Canada, this should not be the status quo. Your business should not suffer penalties due to the nature of your products. Therefore, if your processing rates are not at par with standard businesses like supermarkets, it’s high time to consider switching your merchant service.

2. Inefficiencies in Customer Support

The quality of customer support provided by your current card processing service is another indicator of whether you need to switch providers. For instance, if your POS machine malfunctions and cannot connect to the internet, this means you can’t process any card sales. Now, consider the response from your merchant services – is it swift and helpful? Do they provide support during business hours or around the clock?

Prompt and efficient customer support is essential in maintaining smooth business operations. If your current service provider cannot guarantee this, especially during peak business hours, you risk losing sales. And for smaller businesses, this can significantly affect monthly revenues.

3. Inadequate Knowledge of Cannabis Banking Regulations

The cannabis industry is subject to strict legal and banking regulations, making it unlike any other industry. The inconsistency in these regulations across different states in the U.S. further complicates matters. Some states have full legalization, while others still see Cannabis as dangerous and illegal as Cocaine or heroin. This lack of unified national consensus contributes to a perplexing and potentially challenging regulatory environment surrounding Cannabis. As such, working with a provider who lacks experience in navigating these complexities can be detrimental to your business.

Only a cannabis payment processing provider, knowledgeable about the intricacies of the cannabis market and banking regulations, should handle your transactions. If your current provider does not meet these criteria, it may be time to seek a more competent one.

4. The Switching Process – Step by Step

Now that you’ve identified the need to change your cannabis payment solutions provider, it’s essential to understand how to undertake this process. Here are the critical steps involved:

  • Research: Conduct a thorough investigation on potential providers, considering factors such as their fees, customer support, and knowledge of cannabis banking regulations.
  • Compare: Create a comparison table to evaluate the pros and cons of each provider.
  • Contact: Reach out to the potential providers and discuss your business requirements and expectations.
  • Negotiate: Try to negotiate the terms to suit your business needs.
  • Contract: Review the terms of the contract thoroughly before signing.
  • Setup: Arrange for the setup of the new system and ensure your staff is adequately trained to operate it.
  • Monitor: Keep a close eye on the new system’s performance and address any issues promptly.

5. The Importance of Trust

Trust is a crucial element in any business relationship, and your association with your cannabis payment processing provider is no exception. With the cannabis industry’s unique challenges, it’s vital to have a provider who understands your business and can provide tailor-made solutions. PayRio is an example of such a provider that has been serving the cannabis industry & other high-risk industries, offering reliable and efficient cannabis payment solutions.

6. It is Time to Change your Provider

In conclusion, the decision to switch your cannabis payment solutions provider should not be taken lightly. It requires careful consideration of factors such as the fees charged, the quality of customer service, and the provider’s knowledge of the cannabis industry and its banking regulations. There are more reasons you may look to change your Cannabis Merchant Services Provider, but these are just a few of the most notable. Once you find a provider that can offer efficient and reliable services, the benefits to your business will be immeasurable.

Remember, the ultimate goal is to provide your customers with a seamless and secure purchasing experience, and your cannabis payment processing provider plays a significant role in achieving this objective.

The switch to a more efficient and reliable cannabis payment solutions provider can significantly improve your business operations.

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