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eCheck/ACH Events

How Paybotic Can Help Dispensaries with eCheck and ACH Payment Solutions

The lucrative but high-risk legal cannabis industry presents no shortage of hurdles for investors and business owners. The legality of cannabis sales varies from state to state, which can make it difficult for you to find a viable means of electronic payment processing.

Paybotic offers a work-around for the restrictions on electronic payment cannabis purchases by serving as an intermediary between merchants and financial institutions. By partnering with our experienced professionals, you can break away from a cash-only payment system and become a dispensary approved for ACH and other digital payments.

We offer a full range of high-risk payment processing services at extremely affordable rates. This will allow you to process checks electronically, credit cards, and ACH transactions both in-store and online. Streamlining the purchasing process will dynamically change your business model and dramatically improve customer satisfaction.

Dangers of Operating a Cash-Only Cannabis Business

Many merchants in the legal cannabis market have sought to circumvent electronic payment restrictions by doing business on a “cash only” basis. While a feasible option, operating on cash only payments will have several major drawbacks and substantially hinder the growth of your business.

Some concerns include:

Additional Security Risk

Operating as a cash-only cannabis dispensary creates a substantial amount of risk on several levels. Having huge amounts of cash on-hand makes your business a target for theft or robbery. Protecting your business from the criminal element will require you to invest in substantial security measures such as metal detectors, reinforced glass, and alarm systems.
A business that operates primarily with cash transactions faces internal security concerns as well. To prevent this, you must implement a thorough system of checks and balances to monitor staff members. You will need cash counting machines, registers, and additional equipment to ensure completely accurate accounting.

Difficult to Track

Any business venture is required to provide governing entities with detailed reports on profits, payroll, and other expenses. When partnering with a full-suite services provider like Paybotic, all of these payment processing responsibilities can be handled electronically by our team.
Operating a cash-only dispensary makes accurate tracking and reporting much more difficult and time-consuming. This results in wasted resources and opens your business up to serious liability. Even accidental misreporting profits can result in major fines that will derail the success of your business.

Reduces Customer Satisfaction

In our modern economy, electronic payment solutions are the preferred means of conducting transactions. This is especially true in the legal cannabis industry as most customers are in a younger demographic. Without methods for accepting electronic payment, your customers will need to bring cash with them every time they visit a store, which can discourage repeat business.
When you partner with Paybotic, you will gain the ability to accept electronic payment. When customers can pay with their digital wallets, they are more likely to spend large sums. eChecks and ACH (Automated Clearing House) payments also streamline the checkout process, allowing a fewer number of employees to serve a larger number of customers.

Benefits of Accepting eChecks for Cannabis Purchases

Paybotic can streamline the way you do business with our eCheck payment solution service. This is a great alternative to traditional credit card payment and cash-only options. Even if you have difficulty obtaining a merchant account, you can still be a great fit for our eCheck program.

We provide fast approvals, usually within 48 hours. Once approved, our experts will get to work setting up your POS, or virtual terminal system. This will allow you to broaden your customer base and streamline the purchasing process. You will benefit from reduced transaction fees, resulting in more profits and additional funds to grow your business.

Our eCheck program will clear and settle transactions fast, with many purchases processing the same day. Do not compromise the long-term success of your business by engaging in risky cash transactions.

With our secure payment gateway, you can create and process electronic checks, send email invoices, and even accept payments online (or integrate into your current systems via API). You can receive same or next day credit for your transactions at all banks in the United States.

You are a great candidate for our e-check solution if you:

  • Accept high value and volume of transactions.
  • Your current credit card processing fees are expensive.
  • Have difficulty applying for a merchant account: we work with CBD oil, kratom, drug paraphernalia, and cannabis merchants among almost all other industries.

Program Features

  • Easy & fast approvals
  • Significantly lower rates than credit card processing
  • No reserve required
  • Same day or next day settlement
  • Can accept payments online via payment button or direct integration with most online shopping carts, over the phone
  • Can email invoices via virtual portal
  • Can initiate ACH payments to vendors
  • Federally-insured U.S. banks

Get eCheck and ACH solutions for your cannabis company today. Contact Paybotic online or call at 844-420-4729.

What to look for in a CBD payment processor

As evidenced by the plethora of products being sold online, and the increasing number of brick-and-mortar shops popping up across the country, CBD business is feeling good. With estimated U.S. revenue of at least $16 billion by 2025, and similarly eye-popping predictions for the global industry, CBD is an astonishingly fast-growing market.

Cannabidiol, or CBD, has become enormously popular in health and wellness spheres in recent years. Derived from the hemp plant (Cannabis sativa), the main distinction between CBD and marijuana is the former’s lack of psychoactive ingredients like THC (tetrahydrocannabinol).

While the CBD industry is extremely high growth, it is also problematic because of its association with marijuana, variations in state laws and ambiguous federal legal and regulatory status. Therefore, while cannabis-derived products are now legal in most states and more widely accepted across the country, many banks and payment processors still do not accept CBD transactions or approve CBD businesses for merchant accounts, meaning suppliers are constrained in their payment options.

Why is CBD a special case?

The passing of the 2018 Farm Bill removed hemp-based products — those containing less than 0.3% THC — from the Schedule I list of controlled substances. This was expected to open legal payment opportunities for CBD shop proprietors to acquire merchant accounts and accept credit cards like any other business.

However, due to the legal gray area and other issues — including product efficacy and quality control, as well as lack of full Federal Drug Administration approval — CBD businesses remain marginalized in the high-risk category, struggling for easy and affordable payment solutions.

With a growing number of eCommerce CBD businesses entering this evolving marketplace, some payment processing companies have recognized the need and taken on the risk, providing gateway systems that allow merchant processing.

Until cannabis is fully legal and federally regulated, businesses will have to rely on CBD payment processors to securely, efficiently, and compliantly handle high-risk transactions.

Why use a payment processor?

There are many reasons for your CBD business to use a trusted processor to facilitate transactions, support ecommerce and help manage day-to-day operations:

Expanded payment options

CBD processors accept credit and debit cards, allowing you to acquire and serve customers who prefer these common types of transactions. A processing system also enables customers to buy products through alternative payment gateways, such as prepaid cards, gift cards and bank transfers.

Easy payment integration

Processors can be incorporated into your existing eCommerce store and product purchases combined with your other workflow payments, such as accounting, billing and customer relationship management.

Improved customer service

The right provider will include customer service, troubleshooting, data security and fraud protection in your package. Fraud protection is particularly important when you are dealing with chargebacks, alternative payments and other unconventional business operations.

Great for scaling

CBD processors constantly update their software and adapt their programs, in case of changes in the payment market, ensuring your online store is an up-to-date, well-oiled machine.

Fewer headaches

A CBD processor that handles administrative, accounting and billing issues not only reduces the chance for mistakes and discrepancies related to running your business, it also frees you up to concentrate on what matters most: attracting and retaining customers.

What to look for in a CBD payment processor?

First and foremost, you need a processor that securely handles high-risk merchant transactions. Here are five other considerations for selecting a payment solutions provider for your CBD business:

1. Lower prices

Any high-risk merchant account is going to cost more than a similar low-risk one. Be prepared for tiered pricing; higher statement, compliance, monthly and annual fees; and, often, rolling reserve restrictions and other expenses. Business owners should shop around to find the best prices for their needs.

2. Reasonable contracts

The unfortunate reality for CBD merchants is they usually must deal with longer-term contracts and early termination fees, as well as automatic renewal clauses and other unfavorable terms. Being aware of your options and contract terms can help you make better, more sustainable decisions.

3. The right hardware

You will need a countertop credit card terminal or mobile point of sale system with card reader if you’re going to sell CBD products from a brick-and-mortar shop. Your system should be equipped to take both magstripe and EMV cards, and if it is NFC-capable you can also accept contactless payments like Apple Pay.

4. Integrated eCommerce

To expand your potential customer base, you’ll want to sell your products online, especially given the growing number of people who use their smartphone to shop. While the legal issues around CBD sales complicate that, dedicated high-risk processors can provide your business with trusted payment gateways that securely handle internet transactions and can exclude customers who live in places where CBD products are illegal.

5. Customer support

Above all else, what truly separates the ordinary processors from the outstanding ones is customer service. CBD and other merchants considered high-risk experience more frequent customer support issues, so you’ll want to find a provider with a good reputation for effectively resolving them.

How Flex Payment Solutions can help

Selecting a CBD payment solutions provider is a significant decision. You want a processor known for fair prices, honest service, and great customer service.

Because of the classification by financial institutions and legal issues surrounding CBD, it’s important for you to understand your best options in order to find a trustworthy, knowledgeable payment solutions partner that is capable of serving your specific needs and helping your business grow.

Despite changing policies, numerous restrictions and few proficient providers, Flex Payment Solutions is here for CBD merchants. With a unique compliance background, innovative business model and special banking relationships, we are ready and able to help you navigate this complex legal and regulatory landscape.

Our custom payment solutions and first-class customer service can help any legal business — such as hemp-derived CBD shops and Native American tribal lending — to operate efficiently as a high-risk merchant and succeed in a high-growth industry.