Cannabis businesses face many challenges, not among the least of them accepting payments. We are all well aware of the downsides of running a largely cash-based business. It's expensive and it's dangerous.
Lack of access to traditional payment channels, credit cards, and banking have left cannabis merchants searching for alternative methods. Closed-loop systems, crypto currency and other alternative payment methods can be hard to sell to customers. Many consumers don't like to be forced to try something new or become members of something they don't understand. Especially where their sensitive payment information is involved.
For cannabis businesses to appeal to customers, they need to accept payments in ways that are comfortable and familiar to them. Because of this, cannabis businesses of all types are embracing electronic check payments to facilitate cannabis sales.
The Echeck is a powerful cannabis payments tool.
Echecks are one of the best ways to accept cannabis payments online. Yes, you heard that right. The Echeck is a powerful cannabis payments tool.
Paying by check is nothing new in payments. While writing out a paper check is no longer common in the retail world, check payments are still widely used. Especially for companies making B2B payments.
As the age of digital commerce has advanced, electronic payments have mostly replaced the paper check. Businesses pay bills with electronic payments and deposit checks electronically.
And consumers have been using this technology for some time, whether they realize it or not. For instance, when people pay a bill using their Bill Pay feature with their bank, the bank rarely remits a real check anymore. Instead, they create a virtual check with the routing and account number and all money transfer is done electronically.
Echecks allow people and businesses the convenience of paying right out of their bank account without the hassle of writing, mail, and waiting for checks to clear. They also allow people and businesses to participate in online, digital payments without using credit.
Which is why it is so great for the cannabis industry. Cannabis businesses can accept digital payments while remaining within the confines of the federal law. Echecks also allow cannabis companies to operate more efficiently and provide customers with more payment options.
As a cannabis business owner, I'm sure you're aware that accepting cash is quite expensive. According to a recent Federal Reserve study, accepting cash costs traditional businesses 0.53%, on average. In fact, accepting payments of any kind costs businesses a lot of money.
However, electronic payment transfers are among the least expensive ways to accept payments. Processing Echeck transactions costs less than half what credit card processing would cost.
EChecks allow cannabis businesses of all types to accept payments online, safely and securely. Virtually any type of cannabis business can pay with and accept Echecks. But it is especially convenient for busy dispensaries and delivery operations.
Conduct digital cannabis payment processing with Echeck transactions.
Dispensaries use Echeck payments to allow customers to pre-pay. Often, customers often know exactly what they want when they head to a dispensary. Especially return customers. Echeck payment options allow them to buy online, pick up in-store (BOPIS). This fast and convenient way to get products has become very popular since the pandemic.
Paying electronically is also great for cannabis delivery. Companies can accept payments for orders prior to delivery. Drivers no longer have to worry about cash handling and making change. Electronic payments help to reduce the amount of cash they must carry on the premises. This creates a much safer environment for employees and reduces the chances of theft for owners.
Paying by Echeck is an important business tool for B2B payments up to $25,000. Cannabis seed companies, dispensaries, testing labs, and other vendors that are often billing and paying the same companies monthly benefit from electronic payments.
Echecks allow you to streamline your supply chain and operations, maintain cash flow, and reduce cash handling.
Cannabis customers want a convenient and secure way to pay for their products.
Paying by Echeck is also safe and convenient for your customers. Customers can rest assured their payment information is safe and secure. They will not have to open any new accounts, become a member or jump through hoops to buy cannabis.
Paying for items using the bank account and routing number is a familiar process for customers. They use this information in their personal bill pay, to pay for utilities online, it's even how they set up PayPal, initially.
All your customers have to do is enter their bank’s routing number and their account number into your secure online gateway. That's less information than if they wanted to use a credit card. And the payment information can be stored securely by the gateway.
Frequent buyers can complete quick orders without having to enter information time and again.
Accepting and sending electronic payments provides cannabis companies an efficient, reliable, and affordable way to conduct commerce digitally. But, maybe just as importantly, they can do so without the concern of federal laws.
Being able to conduct payments digitally is only one aspect of the Echeck payments option. There are many benefits for cannabis companies and their customers. Both retail and B2B customers.
Benefits that come with Echeck payment processing for cannabis sales:
- Less expensive and safer than cash: reduced cash on premises, fewer transports and cash deposits.
- Reduced chance of theft and burglary.
- Create Electronic Invoicing for B2B clients with a convenient “Pay Now” button that can be clicked from within the invoice taking them to your secure payment page.
- Create recurring billing and recurring billing notifications for clients.
- Customers appreciate a familiar form of payment.
- Facilitate online orders after hours.
- Increase sales with BOPIS.
- Pre-collect payments before filling delivery orders.
- Faster payments, fast funding: Echecks are usually processed within 24 hrs.
- Provide a trackable payment method.
- Set up is quick and easy with Echeck processing services. The technology integrates directly with your shopping cart on your website. Businesses can begin accepting Echecks within 24 hours of approval for Echeck processing.
With electronic check transactions, there is no compromising on security. All payment transaction information is protected with bank-level security. The processor uses encrypted tokenization to store all bank account information per current Advanced Encryption Standard. Cannabis business owners and their customers can be confident their payment transactions are in secure hands.
Echeck payments for cannabis rounds out an efficient, legally compliant cannabis payment processing strategy.
Combining Echeck payments with PIN Debit for cannabis and ACH payments allows your customers to pay the way they want. They can pay in store, online, over the phone, even through an app.
Accepting Echeck payments shows your customers and your B2B clients and suppliers that you understand their need to pay quickly, efficiently and securely.
They allow you to reduce your cash, but not your cash flow. And they help you increase sales and accept cannabis payments while staying within the confines of the law.
At Bankcard International Group, we continue to advocate and work to bring access to banking and financial services to the legal cannabis industry. We know that by providing compliant payment solutions now we can help move forward and bring together both the cannabis industry and the payments industry.
Our goal is to bring legal payment options that are also workable for you and your customers. And when we can finally offer cannabis credit card processing legally, we’ll be right here, spearheading that too.
If you're looking for a reliable, long-term way to accept payments in your cannabis business, Echecks are the answer.