As soon as cannabis became legal, people became amazed by this particular idea. Back in the day, law enforcement considered it as Schedule I drug, while in the several years before, legalization movements gained considerable support.
Today, some states legalized both medical and recreational marijuana use, which lead to opening dispensaries and stores in almost thirty states where adults can legally purchase any type of weed they want.
The main problem is that purchasing methods are complicated because consumption is legal in your state, but it is still a banned substance if you consider federal levels.
It creates a problem because it affects the regulations and excludes these stores from financial services. Therefore, the credit card company cannot lend money to this particular business because they will be prosecuted if that happens.
It is vital to enter this website to determine the best ATM that you can place in your weed store.
Lack of Credit
The main problem that these businesses and the general industry are facing is the inability to use regular and legal credit card payment methods.
The main reason is that credit card companies detached themselves to avoid consequences, which is why the customers cannot use the cards for buying purposes.
Another problem arose when Cole Memorandums entered the scene that allowed dispensaries some form of protection against lawsuits. However, at the very beginning, the cannabis market was without any protection.
Current Purchasing Options
When it comes to car payments, it is challenging to do it and almost impossible. Therefore, the best payment option is cash. However, that problem creates severe issues because dispensaries consider it a burden.
Since they do not have banking services, cash is the only option left for the overall purchasing. These payments can affect the dispensaries in numerous ways. For starters, if the weed stores accept only cash, the purchase will be lower.
Generally, people tend to buy less with cash than with plastic, and that is the fact with a scientific background. However, banks are afraid to service them the same way as credit unions. The federal government could shut them down for accepting their deposits.
Since the legal concerns are significant, it means that cannabis dispensaries do not have bank support and place to deposit cash.
That is why they handle every single aspect of business with cash transactions, including buying from vendors, paying workers, and handling taxes.
This particular situation with cash makes the customers at risk because researchers have stated that the number of armed robberies increased primarily at medical and recreational cannabis stores.
The main reason for that is that they come with a large amount of stacked cash inside the store, which makes them prone to theft and other felonies.
You just have to visit this link: https://www.safeaccessnow.org/federal_marijuana_law to understand the current federal regulations when it comes to cannabis.
What about ATMs?
When it comes to automated teller machines, cannabis stores tend to use them to process payments as well. Generally, you can find the machines close or inside the store, and they can handle two things:
- Provide the cash withdrawal from the bank accounts so that customers could pay on the spot without walking around with cash and becoming victims of theft
- Allow customers to exchange cash for vouchers that are used as the store credit, which are commonly known as cashless ATMs.
In both cases, the federal laws and regulations are breathing around the neck of these businesses, so it is still not simple to handle every single step on the way. ATM-operating banks do not wish to do business with these stores; as a result, they are prone to bank fraud as well.
Experts state that customers should check their receipts from ATMs because some machines come with fraudulent characteristics because they do not have the safety regulations as standard ones.
Even though ATMs tend to be expensive in the long run for both customers and businesses, the idea is that by implementing them, businesses can increase the chances of reaching more customers than before.
Even though they have to pay fees for each transaction, it is a way safer solution than to bring cash from your house, especially in today’s world filled with criminals and potential thieves all around you.