Any business needs a payment processor to function. Cannabis payment service providers help you accept different payment options, integrate payments with your systems, and maintain security.
However, it's vital to be careful when choosing a payment processor, so today, we present the four mistakes to avoid when looking for cannabis payment processors.
Mistake #1: Not Paying Attention to Hidden Commissions
Payment processors charge different rates and fees. Payment processing fees can vary widely from one payment gateway to another, depending on variables including the type of credit card used and the method.
Qualified rates are often the lowest rates offered by a payment processor.
Non-qualified rates are another type of rate that payment processors may charge. Payments made with a credit card that also offers rewards are subject to this rate. Customers shopping at your dispensary will be more interested in them if they offer rebates, cash bonuses, or loyalty points.
To entice clients, payment processors promote the qualified rate more. Cheaper rates may be more appealing to cannabis retailers, so keep that in mind.
Mistake #2: Not Focusing on Trust and Reputation
The prevalence of online fraud is constantly growing. Most stores have a severe issue with the theft of client information, which includes credit card details and personal identification. Independently managing data security might be expensive for your business.
For this reason, it is crucial for your dispensary to partner with a payment processor that uses a robust and trustworthy data protection system.
Mistake #3: Search for Very Low Rates
Finding a payment processor with reasonable fees is simple. In contrast, if you see an asterisk, it means you need to read the small print. Some transactions may incur additional processing costs. These charges can quickly transform successful transactions into a loss.
Mistake #4: Not Reading the Contract
Even though reading a contract from start to finish is a chore, you should do so before signing, as it details the credit card processing services and guarantees you can expect.
However, before signing with a payment service, you should investigate and learn all you can about the obligations you'll be taking on. You should thoroughly review any contract you want to sign because most of them are legally enforceable. To put it another way, this will help you save money by preventing any unpleasant or costly surprises down the road.
Choose a Transparent and Solid Company!
Any payment processor should offer several useful features that increase the security and productivity of its clients' operational processes. As a dispensary, you should know the mistakes to avoid when looking for a cannabis payment processor. Ensure to communicate with the company to advise your business. And if we are talking about an honest business willing to serve its customers, we are talking about Cannabis Credit Card Processing today. Our company will take care of empowering and making your finances simple and safer. Contact us for more information!