Understanding the stability and legality of your cannabis payment platform is crucial for the safety and success of your cannabis business. Let’s explore the risks associated with popular payment solutions and discover compliant alternatives.
The Challenge of Cannabis Payment Solutions
The cannabis industry, grappling with federal banking regulations like the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) laws, faces significant challenges in securing stable payment platforms. Traditional banking services are often inaccessible, forcing businesses to rely heavily on cash, which poses its own set of risks and inefficiencies.
Exploring Risky Payment Solutions
Desperation for electronic payment methods has led some cannabis businesses to adopt unstable and potentially illegal solutions, posing serious risks to their operations and legal standing.
Offshore Merchant Accounts and Their Risks
These accounts may initially seem appealing but come with high fees, potential for abrupt account closures, and legal risks like money laundering.
Closed-Loop Wallets and Their Limitations
While facilitating payments within a dispensary, these wallets are inconvenient, have low adoption rates, and can potentially disguise credit card transactions, which is illegal.
Mis-coding Business Transactions
Some businesses resort to mis-coding their transactions to fit within acceptable Merchant Category Codes, risking account shutdowns, frozen funds, and legal ramifications, including bank fraud.
Cashless ATMs and Legal Scrutiny
Popular among dispensaries, these systems disguise sales as ATM withdrawals, attracting scrutiny from card brands like Visa and MasterCard and risking severe consequences for non-compliance.
The Importance of Compliant Payment Solutions
Choosing a legitimate and compliant payment solution is essential for protecting your business and supporting the advancement of legal cannabis payment options.
B.I.G.’s PIN Debit Payment Processing
B.I.G. offers a compliant PIN Debit processing solution specifically designed for the cannabis industry. It is bank-backed, transparent, and offers full disclosures, ensuring legitimacy and reducing risk for your business.
Opting for legitimate payment solutions not only safeguards your business but also contributes positively to the industry’s fight for fair and legal payment avenues.
Protecting Your Business with Legitimate Solutions
To learn more about legitimate cannabis payment options and how they can benefit your business, contact Bankcard International Group. Our team of ETA-Certified Payments Professionals is ready to provide you with reliable and honest advice on your payment options.
