Dispensaries operating within an industry with many grey areas surrounding transactions and banking often turn to workarounds like cashless ATMs or debit card pathways as solutions, even though this puts their businesses at risk of violating federal banking policies.
There are ways to sidestep these risks while providing customers with an effortless customer experience.
1. Flowhub
Flowhub is one of the industry’s premier cannabis retail software solutions, providing compliance, point of sale (POS), and inventory tracking capabilities. Their remote-first approach provides cannabis retailers with a safe experience according to Sherman.
With the Flowhub mobile app, you can give each customer a superior customer experience by offering quick ID vetting checks and tracking their purchase throughout. Furthermore, this software makes inventory transfers between rooms simple as well as audits that reduce audit time by speeding them up and reconciling physical/Metrc discrepancies bulkily.
Flowhub offers cloud-based software as a service (SaaS). Their solution integrates with over 30 technology integration partners that work to help boost dispensary performance and ROI – such as digital menu partners like Dutchie, Jane, Seed; as well as analytics companies like Happy Cabbage and Headset.
2. Aeropay
As any dispensary owner knows, cash payments can present many risks for their dispensary’s owners and employees alike. From theft of company assets to potential robberies, cash can pose considerable danger.
Therefore, it is crucial to identify a payment processor capable of mitigating these risks. Aeropay offers such solutions by sending money electronically and safely between banks via bank-to-bank transfers.
This process not only offers customers digital records of their transactions that aid compliance efforts, but it also offers businesses more accurate accounting assistance. As a result, cash has been removed from the cannabis equation altogether while providing customers with convenience – not to mention added safety thanks to PIN debit solutions like ACH.
3. ACH Payments
ACH payments offer a convenient alternative to cash payment solutions for both consumers and dispensaries alike, making payments simple for everyone involved. Unlike wire transfers, which require days for processing, these ACH payments are processed all at once and settled within the same day.
ACH payments work similarly to debit card transactions and can be used both online and in store purchases. Furthermore, they provide business owners with a record of all transaction history as well as being safe and secure.
To get started with ACH payments, look for a solution that integrates smoothly with your point of sale system. This will ensure a seamless checkout experience while decreasing human error. In addition, using an integrated solution has led Greatest Hits in Massachusetts to experience a 31% increase in average cart size since using one.
4. Point of Banking
Management of large sums of cash can be an immense hassle for dispensaries. It raises security issues, invites internal theft, increases transportation costs for deposits, and poses compliance concerns as banks must file suspicious activity reports on cannabis-related transactions. By offering cashless payment solutions such as ACH electronic transfers and PIN debit payments instead, dispensaries can mitigate their negative impacts.
ACH transactions allow businesses to safely transfer funds between accounts in an efficient and seamless manner, unlike credit card transactions which may violate federal regulations. Dispensaries using ACH transfers to avoid having their merchant account taken over by credit card companies is the ideal solution, while an integrated POS system that accepts ACH payments like Flowhub or Aeropay and supports cannabis workflows like delivery is best.
5. PIN Debit
PIN debit offers an alternative to cashless ATM solutions by using an individual’s existing debit card to make purchases. It allows compliant dispensary payments while eliminating out-of-network bank fees that have been assessed against cashless ATM transactions, while simultaneously helping consumers avoid having to manage change for the budtender.
Cannabis payment solutions designed specifically for dispensaries provide customers with an experience similar to making debit transactions, which increases basket sizes while streamlining checkout for budtenders. When selecting this solution, make sure it integrates with card networks because non-integrated systems could result in costly fines from card networks if violations of card network rules occur.