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Medical Marijuana Card Processing | Dispensary Merchant Account Services

Since the major credit card associations pulled merchant account services for medical marijuana dispensaries in July 2012, many dispensary owners were left with one option: to operate as cash-only businesses.

Although the Federal Government had left the decision of whether or not to legalize medical marijuana in each state up to each state, the card associations made their decision based upon the fact that the use of marijuana was still against federal law.

The reasoning for the decision by the associations was understandable, but the result forced more cash into these businesses. Their decision not only created a disservice to customers, but also put some businesses in a dangerous predicament, where having excessive cash-on-hand made them more susceptible to robbery.

The POB Solution

The Transaction Group (TTG) and our partners had previously worked out a solution enabling dispensaries to accept credit cards from customers very similar to processing swiped transactions with a traditional merchant account.

Medical marijuana dispensary owners that had the TTG program in place at the time their merchant accounts were shut down could continue to take credit card payments from customers. Many other dispensaries quickly signed up for the program to offer a payment alternative to customers.

This debit and credit card processing solution, known as Point-of-Banking (POB), worked well until banks shut down the program in 2015.

The Future of Card Processing for MMJ Dispensaries

Now, The Transaction Group offers a new mmj credit card processing solution that allows customers to pay with credit cards at dispensaries. This voucher program is non-PIN based and the transaction carries standard rates rather than the high rates for cash advance that were required in the POB program.

The merchant account voucher program is proving to be the best solution since traditional merchant accounts were available. In fact, some dispensary owners prefer this solution for the considerable savings over the high rates and fees of the past.

Despite the highs and lows the legal marijuana industry has faced in recent years in the United States, there appears to be some movement in the right direction.

At TTG, we’re hopeful that 2015 is the year for positive change in which financial institutions will no longer be fearful of prosecution for supporting marijuana dispensaries.

However, we feel that until that time comes, the voucher program is such an ideal solution .

If you own or manage a legally operating medical marijuana dispensary and have questions about the program or are interested in setting up merchant account services, please contact us.

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