Merchants across the United States struggle to provide sustainable, reliable electronic payments for cannabis. Some might get cannabis credit card processing, only for the system to get shutdown, while others use shady workaround solutions or resort to pure cash business. Let’s clear up some of the confusion and showcase how you can get cannabis payments that work.
What’s wrong with some of the other solutions?
One of the first questions we’re asked is why it’s a bad idea to offer credit card processing for cannabis. The fact is that the branded-card networks don’t allow cannabis transactions on their rails. So, if you’re accepting debit or credit card payments for marijuana, somewhere along the lines you’re lying to your financial institution to get around this rule.
The repercussions for this are pretty dire. In fact, accepting credit cards for cannabis could destroy your company. It can also hurt the cannabis industry in general, contributing to the payment problem.
Even if you’re using a workaround solution, you could end up with common payment issues like needing to cycle through different payment providers every few months or having your bank account shut down. If you’re not sure if your payment provider is actually a workaround scheme, you will want to check for these signs of a shady cannabis payment solution. If they’re promising you credit card processing for cannabis, that’s a big red flag. Another is if your money becomes more well-traveled than you are!
Because of all these risks and difficulties, many businesses rely exclusively on cash for cannabis payments. That’s the way the cannabis industry has traditionally functioned, and we’ve talked to many businesses who assumed it was the only way. While we would never expect for the cannabis community to switch to purely electronic cannabis payments, it’s important that business owners realize the cost of cash. It’s more than an inconvenience or security risk – high volumes of cash are costing your business more money than you may know.
Concerned about your cannabis payment processor?
How do I accept electronic payments for cannabis?
The first thing you will need to do is make sure that you have a cannabis merchant account. You should distinguish this from a payment processor. A merchant account, also known as merchant services, is what allows your business to accept payments in multiple ways. Typically, merchant services refer to debit or credit cards, but a merchant account also allows you to accept other electronic payments.
Hypur uses direct, account-to-account transfers for electronic cannabis payments. Here you can read more about how Hypur transactions work. It’s important to note that our Automated Clearing House (ACH) transfers are different from an e-check or other ACH solutions. As a result, Hypur transactions are faster and more reliable.
Before you can offer Hypur Pay for your consumers, you’ll need to go through the Hypur underwriting procedure. This is a straightforward process designed for us to stay in compliance with regulations and our banking partners.
Need sustainable electronic payments for cannabis?
What about paying my vendors or partners?
Hypur Pay isn’t just a consumer-facing electronic payment method. You can also use Hypur to make B2B payments. With a focus on simplicity, our B2B payments for the cannabis industry are quick and convenient, whether you’re sending or receiving funds. As a legitimate business, you deserve access to modern and sustainable B2B cannabis payments.
Can I use Hypur for CBD?
Yes! The rules for CBD payment processing are a bit different than those for cannabis because hemp and hemp oil are technically legal at a federal level. There are still high standards for regulatory compliance for CBD, which is why it can be hard for merchants to find reliable payment processing for CBD.
Hypur is transparent with our financial institution partners, which is how we’re able to sustainably offer payments for the cannabis industry. Those same relationships and transparency make our CBD payment processing more reliable and sustainable. Whether you’re selling CBD online or in-store, offering distribution or wholesale, Hypur can help.