As the cannabis industry continues to grow, so has the complexity of processing payments for cannabis products. To stay ahead of the competition and ensure that your business complies with ever-changing regulations, you need to partner with a company that supports specialized payment processing and understand the needs of this unique market.
Businesses are typically considered high-risk if they operate in a highly regulated industry such as the cannabis industry. For this reason, cannabis merchants need to find a specialist payment processor to support their unique financial operations.
This blog post will answer some frequently asked questions about specialist payment processors and explore the reasons why cannabis retailers should switch to specialist payment processors in 2022.
Most Asked Questions About Specialist Payment Processors
Here are some of the frequently asked questions about specialist payment processors:
1. Why Do Cannabis Retailers Need A High-Risk Payment Processor?
A high-risk payment processor can provide cannabis merchants with the unique and comprehensive solutions they need to succeed.
As any business owner knows, having a reliable and robust payment processing solution is essential for success. For cannabis merchants, this is especially true. Due to the federal and provincial complex regulations and requirements, it can be difficult for these businesses to access traditional merchant services. As a result, cannabis businesses need to partner with a specialist payment processor who understands the unique needs of this industry.
A high-risk payment processor can provide cannabis merchants with the comprehensive solutions they need to succeed. From swift onboarding and approval processes to fraud prevention and compliance support, a high-risk payment processor can help cannabis merchants navigate the complex landscape of the payments industry.
2. Are High-Risk Payment Processors Expensive?
High-risk processors are more experienced in dealing with complex regulations, chargebacks and fraud and are not necessarily more expensive than low-risk processors.
When businesses apply for payment processing services, they are generally classified as either high-risk or low-risk. High-risk businesses are typically those that operate in industries that have complex regulations or are prone to fraud or chargebacks. Because of the increased risk involved with working with these businesses, larger payment processors charge higher fees than their specialized counterparts.
Many high-risk businesses find that the benefits of working with a specialized processor, like Merrco, can also include very competitive pricing. High-risk processors are typically more experienced in dealing with chargebacks and fraud and often offer more flexible terms than low-risk processors. As a result, working with a high-risk payment processor is highly beneficial for many cannabis businesses.
3. What Are The Risks Of Not Partnering With A High-Risk Payment Processor?
Without a specialized payment processor, you may have difficulty accepting payments and conducting business.
Traditional financial institutions consider CBD and cannabis businesses high-risk, so they typically cannot accept credit card payments or open business banking accounts. This can be a major roadblock or obstacle for businesses trying to operate in the cannabis and CBD industry. However, high-risk processors (like Merrco) specialize in working with CBD and cannabis businesses.
In addition to helping you accept payments and conduct business, a high-risk processor can also help you stay compliant with regulations. With a high-risk processor like Merrco, you can rest assured that you are getting the support you need to run your cannabis and CBD business successfully.
4. How Does Being A High-Risk Business Affect Your Chances Of Opening A Merchant Account?
Most financial institutions are reluctant to work with companies considered high risk, which can lead to a more rigorous application process for these businesses.
For businesses operating in high-risk industries, opening an account or obtaining financing can be a challenge. Most financial institutions are reluctant to work with companies considered high risk, and as a result, these businesses often face additional scrutiny.
This may include financial investigations, additional fees and long waits for processing account and loan applications. As a result, it is important for companies in high-risk industries to be prepared for a more rigorous application process.
5. What Should You Look For When Choosing A High-Risk Payment Processor?
It is important to find a payment processor that offers high-risk availability, easy integrations, low fees, and good customer support.
When choosing a payment processor for your business, it is important to consider various factors to find the best fit for your needs. In particular, you should look for a processor that offers high-risk availability, easy integrations, low fees, and good customer support.
Additionally, it is important to review the terms of any contract carefully before signing to ensure that you are comfortable with the terms and conditions. By finding a payment processor that meets all your needs, you can avoid costly mistakes and ensure your business runs smoothly.
Final Thoughts
As cannabis businesses continue to operate in a regulated industry, it is essential that they have access to tools that will help them succeed. Partnering with the right vendors that understand their industry can provide the specialized services that cannabis businesses need to accept payments.
Without access to specialist payment processors, many cannabis businesses would be forced to operate entirely in cash, posing a serious security risk. High-risk payment processors can help cannabis businesses by providing a reliable and secure way for these businesses to process payments.
How Can Merrco Help?
Merrco is a specialized payment processor that provides payment processing services to cannabis, CBD, and regulated businesses in Canada and the US. For more information on how you can partner with us and receive easy and seamless payment solutions, please contact us at info@merrco.com or call our toll-free number at 1-800-957-0534.