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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.

FAQs

What is ECheck/ACH payment processing?

ACH stands for automated clearing house which is a transfer of funds from one electronic bank account to another. An eCheck functions like a paper check, except that the paperless process and a speedier transfer time makes eChecks a more practical option than the traditional paper check procedure. This is a good option for dispensaries handling high value and volume of transactions. eChecks are a good choice for dispensaries paying costly credit card processing fees.

Paybotic has a secure gateway that allows businesses to create and process Electronic Checks, send Email Invoices, and Accept Payments Online (or integrate into your current systems via API). Approvals usually are completed within 48 hours and Paybotic will set up a virtual point of sale system for your business.

If you have questions about eCheck/ACH solutions, our team of experts will help you with your questions. To learn more, fill out a contact form or call us at 844.471.2078. The Paybotic team would be happy to chat about solutions to support your cannabis dispensary success!

What is the difference between ACH and eCheck processing?

An eCheck is a payment that can be a single or recurring payment. It is a convenient and safe way to send or receive electronic funds. An eCheck moves through the Automated Clearing House (ACH). The ACH is the United States financial organization monitoring the funds transfer from one bank account to another. Some transactions can take up to 2-5 business days to settle, so close financial monitoring of money flow by smaller dispensaries is important.

Some other beneficial functions of our eCheck/ACH solution include the capability to send email invoices, integration with online shopping carts, same or next day settlement, and more. Systems involve federally-insured and compliant banks and no reserve is required.

If you have questions about eChecks/ACH payments, our team of experts can help you with your questions. To learn more, fill out a contact form or call us at 844.471.2078. The Paybotic team would be happy to chat about solutions to support your cannabis dispensary success!

What are the benefits of eCheck processing for a cannabis business?

eCheck processing offers many benefits, such as the potential to handle high volume and amount of transactions. eCheck processing also offers lower fees than credit card processing, and sometimes eCheck fees can be as much as 50% less than credit card processing fees. This solution provides access for companies considered high risk businesses.

If you have questions about eChecks/ACH payments, our team of experts can help you with your questions. To learn more, fill out a contact form or call us at 844.471.2078. The Paybotic team would be happy to chat about solutions to support your cannabis dispensary success!

Why Choose Paybotic for eChecks and ACH accounts?

Paybotic offers extensive support to help you integrate eChecks and ACH accounts into your dispensary’s payment practices. Our eChecks and ACH accounts offer significantly lower rates than credit card processing and reserve is required. Fund transfers are settled the same or next day, and payment to vendors can be initiated.

If you have questions about eChecks/ACH payments, our team of experts would be happy to answer your questions. To learn more, fill out a contact form or call us at 844.471.2078. The Paybotic team would be happy to chat about solutions to support your cannabis dispensary success!

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