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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.
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