It is no big secret that businesses in the cannabis industry have very few banking options. Traditional banks and credit unions distance themselves from cannabis businesses to avoid getting flagged by federal laws and credit card regulations. There are many challenges facing cannabis businesses that want to accept credit card payments and deposit cash from sales. Dispensaries, growers, and other cannabis businesses are turning to electronic checks as a means to facilitate transactions without getting held up by the restrictions of traditional banking and credit channels.
How Electronic Checks Work for Cannabis Businesses
Checks are nothing new to businesses. While paper checks have taken a back seat to debit cards over the years, checks are still in use for B2B transactions throughout every industry. But now that we are further along in the age of digital commerce. electronic checks are becoming ubiquitous. Additionally, electronic checks provide an avenue for cannabis businesses to accept and make payments while simultaneously avoiding entanglements with federal laws.
Electronic checks – or eChecks – operate without merchant accounts, and the cost to process electronic checks is much lower than the fees for credit card payments and automated clearinghouses. Additionally, there is no risk of chargebacks, because eChecks are recognized and protected by federal law. Unlike traditional paper checks, electronic checks clear much faster – usually within 24 to 48 hours. By using electronic checks, cannabis businesses can conduct sales and payments between customers, growers, distributors, and more. Dispensaries, growers, labs, suppliers, and other cannabis businesses at every level are moving to electronic checks as a viable and efficient method of accepting and providing payments without jumping through hoops. Customer to business transactions, business to business sales, and more can handle commerce much more efficiently with eChecks.
Make the Switch to eChecks
Topnotch Payment Solutions provides cashless payment options to cannabis businesses of all types. From growers to labs, suppliers, dispensaries, and more, we offer solutions so you can conduct business efficiently without experiencing rejections and other entanglements from banks and credit card networks. To learn more, contact Topnotch Payment Solutions today.