Credit Card Processing
Visa, MasterCard, Discover, and American Express to do not currently allow cannabis payment processing on their networks because it is still federally illegal. This means that these businesses have to operate on a “cash only” basis, losing considerable sales from customers that prefer to use their credit card for purchases.
Although progress is being made at the federal level for the entire cannabis industry, no one is sure when payment processing and related banking issues will be conclusively resolved. Some entrepreneurs have elected to simply classify their business as something deemed less of a risk, such as a holistic health center. Short term, this may solve their immediate issues. Long term, they may end up getting prosecuted for fraud and/or banned from the major credit card networks indefinitely.
The good news is that there are payment processors that have gone to considerable lengths to create a compliant solution for cannabis transactions. At Copper Street Lending we work with the top providers of cannabis and hemp merchant accounts, providing a variety of services outlined below. Because of the inherent legal risk and complications we always recommend that you consult with a legal firm before entering into any binding service contracts.