Two people using cannabis payment processing with Hypur

How Hypur Transactions Work

Recently, we told you that a sign of a shady payment scheme was if they couldn’t explain their cannabis payment processing simply. In fact, we said that it should be easily understandable in five minutes or less. Hypur has been offering transparent cannabis payments since 2014 without interruption. So, we are taking that challenge and explaining how Hypur transactions work.

Payments from Start to Finish

Before a transaction can take place, the consumer needs to establish a profile with Hypur. They give their identifying information, which is used to confirm that they aren’t secretly drug lords. These details are also checked against the Office of Foreign Assets Control (OFAC) list to ensure the consumer isn’t a terrorist. This process usually takes less than a minute.

Once Hypur validates their identity, the consumer can attach a checking account to their Hypur profile. At this point, they are able to transact. Customer sign-up typically takes less than five minutes from start to finish.

Meanwhile, Hypur or one of our partner financial institutions sets up a merchant. This means that we have their settlement account information.

When a client visits a dispensary, they can check in using the Hypur app. They’ll make their selections and go to check out. Hypur can be fully integrated with the merchant’s point of sale system, making it quick and easy to pay. The client simply inputs their Personal Access Code (PAC) to authorize the direct account-to-account transfer.

At the end of each day, Hypur aggregates all the transactions. These are then used to create a file. That file gets sent to one of our sponsor financial institution for processing.

There are two types of sponsor financial institutions that we work with. Some will only do transactions for their customers, which means that the merchant will need to have an account at that bank or credit union. Other financial institutions will process payments for anyone in the state-legal system.

The bank or credit union processes the file the way they would any other payment type. Funds get debited from the consumer’s account and credited to the merchant’s account. While there is a lot of proprietary compliance technology behind the scenes, this is essentially what’s happening when you pay with Hypur.

B2B cannabis payments work in a similar way. As a result, whether you’re in cultivation, cannabis wholesale, retail, or delivery, Hypur facilitates safe, easy, and quick cannabis payment processing.

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Further Key Details

It’s important to note that Hypur is not a money transmitter. The funds aren’t coming to Hypur and then we give them to someone else. Hypur uses direct transfers which are done transparently with banks and credit unions. Because your money isn’t in the hands of third parties, it is safer. We can’t run away with your money, or anyone else’s.

Hypur uses bank-level security. We are third-party verified and PCI DSS compliant, which means that we have external parties inspecting our procedures, controls, technology, and encryption. Hypur is also vetted by the financial institutions themselves, which is a rigorous procedure. They’re only willing to do business with us once they’re fully confident that we are secure and trustworthy.

Sometimes, we’re the technology provider for banks or credit unions. Some of our financial institutions also allow us to underwrite merchants under certain criteria. No matter what, we have extremely transparent relationships, with bank-level due diligence.

Now that you understand how Hypur works, tell us more about your business. We’d love to hear from you about your struggles with cannabis payment solutions or banking so that we can connect you with what you need.

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