With credit card purchases off the table, cash is one of the simplest and most obvious methods of payment that can be used to purchase cannabis.
However, returning to the days of “cash is king” does present some obstacles and considerations for your company. For one, physical cash payments tend to be less secure and more prone to miscalculations than payments made digitally.
Unfortunately, cash can also decrease sales at your store, since customers can only spend the money they have on hand. Many brick-and-mortar dispensaries install ATM machines to address this challenge, but it still offers less convenience than accepting a card.
Another consideration is that eCommerce cannabusinesses hardly use cash as payment, given their payments must be accepted online. Online businesses are limited to the other types of legal payments on this list.
Although credit cards cannot be used as payment for cannabis, debit cards can, making them a relatively safe compromise for companies and customers looking to streamline the payment process.
Because debit cards only allow customers to spend funds that are physically available, customers will still be limited to using only the funds available to them. Still, it presents a faster, simpler payment method that is easier to track.
Despite the convenience of debit cards, many cannabis companies have yet to start accepting them. For those businesses, using Automated Clearing House (ACH) or bank transfers has proven effective for accepting and processing electronic payments. ACH enables customers to move funds from their bank account directly to another—including that of a cannabis company.
ACH payments are secure and reliable. Because they can be done electronically, companies do not need to worry about the money not being available. Much like debit payments, transfers can only be made using existing funds.
The only requirement to make ACH payments possible is a third-party provider, which a dispensary will need to enlist in order to set this system up. Given its convenience and popularity, however, it is a worthwhile investment.
Cryptocurrency is another method of accepting payment, though it is not the most common—or the most popular for that matter. Although crypto is becoming more commonplace in today’s economy, it could be a long time before it receives adoption on a wider scale.
Crypto offers a digital payment method, but customers may not want to assume the risk of placing money in a currency they may not be comfortable with. With crypto, there are also few regulatory options for addressing problems when they arise.
Your cannabis company can certainly consider accepting crypto as a form of payment; however, it is best not to depend solely on this method. That would risk reducing the number of customers able to purchase your products, which is not something any business wants.