Technology has forever changed the way consumers purchase cannabis products. Today more dispensary owners are leaning towards using cashless ATMs to process transitions. With the growing preference for cashless payments, it is only wise to invest into getting a cashless ATM for your dispensary. Switching to cashless payments post pandemic will allow you to keep your customers happy and safe.
Often known as point of banking machines, a cashless ATM is a payment terminal that allows customers to buy goods and services using a debit or credit card. Cashless ATMs do not dispense cash. Instead, these small machines run the customer’s card, make a withdrawal, and print a receipt. The customer can then redeem the receipt for a product. This system is ideal for high-risk businesses, including cannabis dispensaries, medical marijuana clinics, CBD companies, and other businesses that accept cash only payments. Nowadays, cashless ATMs have become the go-to payment option for all types of businesses.
Cashless ATMs are much smaller than typical ATMs and are usually placed in convenient locations for customers to reach. These machines are also called scrip ATMs or scrip cash dispensers. The reason people call them scrip ATMs is because they dispense a receipt known as scrip.
Most people confuse cashless ATMs with the regular ATM machines in banks and retail businesses. In a traditional ATM, a customer would insert their bank cards into the machine. The machine then dispenses the cash and a receipt that has the transaction details. On the other hand, point of banking machines such as cashless ATMs uses a payment terminal to run transactions, without dispensing cash.
If you are still confused, let us explain how a transaction gets processed with a cashless ATM. Ok so, the customer will swipe or insert their bank card into the terminal and enter their PIN, just like a traditional ATM machine at a store. They will then choose the amount of money they want to withdraw. Next, the cashless ATM will dispense a voucher, which the customer will use to pay the merchant to receive their product. Once the transaction is completed, the funds from the customer will be directly deposited into the merchants account. Depending on the cashless ATM provider the merchant should receive the funds in a couple of business days.
Similar to traditional ATMs, cashless ATMs also release funds in predetermined amounts. The only difference is that Point of Sale terminals run transactions in set increments. The merchant will give change to the customer if they pay more than the set amount. For example, if a customer purchases a product for $36 the merchant will charge the customer’s card $40 and give the customer $4 cash in change.
Many customers are surprised that most dispensaries do not accept debit and credit cards. While it is a frustrating situation, marijuana dispensaries have put these stringent measures in place so they can legally operate their businesses. For instance, most credit companies are legally restricted from processing cannabis related payments. That is why credit card companies are reluctant to assign merchant codes to cannabis dispensaries.
The short answer is yes. Although several states have decriminalized marijuana, it is still illegal under federal law. Things became even more complicated for the cannabis industry when the Cole Memorandums were rescinded by Jeff Sessions in early 2008. Leaving the industry even more exposed to legal issues. Due to all these legal restrictions, banks and cannabis companies face several challenges processing credit card payments. Leaving most dispensaries with limited options but to accept cash only. With that being said, cashless ATMs provide a viable option for dispensaries, medical marijuana clinics, and CBD companies.
It has been established that most traditional banking companies are restricted from working with cannabis businesses. However, this has not stopped the cannabis industry from processing debit and credit card transactions. The unique benefits of cashless ATM machines for dispensaries, medical marijuana clinics, and CBD companies has revolutionized payment processing for high risk businesses. Let us explain the unique benefits for each specific industry.
Cannabis dispensaries still have to deal with the problem of being a high risk business. The industry has come a long way, with the passing of the Safe Banking Act, which provides more legal protections for banks that process cannabis payments. Nonetheless, cashless ATM machines are turning out to be the best choice for dispensaries that want to comply with federal law while reducing the cost of fees from high risk merchant providers. Moreover, this payment option also reduces chargebacks and fraud.
Although medical marijuana has been legalized in most states across the country, one of the hurdles surrounding medical marijuana clinics is the lack of a secure and convenient payment methods. Moreover, medical marijuana clinics and banks can now comply with federal laws without inconveniencing their medical patients.
CBD products have become extremely popular in the last decade. The benefits of CBD are widely acknowledged and are medically proven to help reduce chronic pain and inflammation. CBD products also reduce nausea and several other ailments. However, CBD companies have a hard time selling specific products like Delta 8. The good news is that CBD companies can now turn to cashless ATMs companies to help them process debit and credit card transactions.
Now that you have learned everything there is to know about payment processing for dispensaries, do you need a cashless ATM for your cannabis business? Contact the leading high risk merchant processing company My Payment Solutions USA today to quickly get your cashless ATM services up and running in no time. As the leading high-risk credit card processing company, our team takes pride in helping companies switch to cashless ATMs.
