It’s no secret that Cannabis payments remain elusive while merchants and dispensaries are unsafely hoarding large amounts of cash. As long as marijuana possession, use and sale remain illegal by US federal law (which supersedes state law), the credit card brands will likely maintain their distance from the cannabis industry.
It has forced cannabis merchants in the nine legal states (and Washington, DC) to get creative in accepting payments other than straight cash. Most, if not all, cannabis dispensaries in the legal states contain ATMs, where customers withdraw the necessary amount of cash and pay for their products. Other cannabis merchants prefer a ‘voucher’ system, in which consumers use a bank card to withdraw the exact amount for the sale, receive a voucher, which they present to the merchant at the point of sale to complete the payment.
Cannabis sales in the US are far from perfect. However, Instabill can offer two storefront solutions for cannabis merchants that could significantly reduce the amount of cash that passes through any dispensary.
Solution 1: Virtual currency solution for cannabis storefronts
While solutions for cannabis payments remain in limbo in the US, Instabill offers a payment solution alternative: cannabis payments with crypto currency.
Through a recent partnership, Instabill has a payment solution for licensed cannabis dispensaries in the US through the use of various crypto currencies such as bitcoin or ethereum. We can offer two point-of-sale (POS), digital currency based payment solutions for cannabis merchants: A countertop POS device, similar to a credit card reader, and a standalone ATM machine, both of which accept crypto currency payments through the scanning of an app (such as Blockchain) containing digital currency.
Not only do the POS and ATM devices accept crypto currency payments, but they also enable customers to withdraw cash for payment or purchase crypto currency for payment at a dispensary; as well as enable real-time cash to crypto currency conversion. Additionally, the ATM device comes with biometric features for facial and fingerprint scanning, and contains software to integrate with the dispensary’s existing ATM.
The transaction is similar to paying for a cup of coffee with a digital wallet, and goes as such:
- The consumer scans a QR code with his/her digital wallet on the dispensary’s screen of the POS or ATM screen.
- Behind our partner’s unique algorithm, the value between cash and preferred crypto currency value is calculated.
- The customer receives the necessary amount in cash or crypto currency and pays for the transaction with either cash or crypt currency.
- Within seconds, the consumer receives confirmation and the transaction is complete.
Consumers using digital currency are reminded that funding digital wallets with credit cards is not possible at present. The consumer simply converts cash or fiat currency into their crypto currency of choice (or vice versa), and pays for transactions with either. Funds are electronically wired to the merchant account within 24 hours.
Solution 2: Storefront solution for cannabis payments, CBD through US banking partner
Instabill has partnered with a US bank enabling merchants to offer a unique card payment solution for the sale of legal cannabis, CBD and hemp. Transactions work like this:
- Patients and customers connect their bank account with our partner and receive our partner’s debit card, funding it with the necessary amount for a transaction.
- The customer makes a purchase at a legal and licensed dispensary with their card.
- Funds are electronically wired to your merchant account within 24 hours.
Our banking partner offers custom merchant card branding for each merchant as well as compatibility with most POS systems for storefronts.
Cannabis payments: Alternative solutions and cash
In addition to credit card processing solutions, e-checks and ACH payments, Instabill is adding crypto currency payments to its menu, fully believing it is steadily rising in popularity. With solutions for cannabis payments non-existent in the US, more consumers are steadily turning toward alternative payment options such as crypto currency.
Our merchant account managers can answer your questions at 1-800-530-2444, Monday through Friday from 8 a.m. until 6 p.m., US eastern time.