Benefits of a MMJ Merchant Account

A MMJ (Medical Marijuana) merchant account has many advantages for companies in the cannabis sector since these businesses' success depends on having a reliable and secure payment processing solution. In the midst of the ongoing growth and legalization of medical marijuana, this type of account is essential for businesses in the industry.

While a MMJ merchant account offers a number of benefits that enhance the general effectiveness, legitimacy, and profitability of cannabis businesses, dispensaries frequently struggle to open a marijuana merchant account. Additionally, there is a lot of misunderstanding and incorrect information available regarding merchant accounts, third-party payment processors, and the payment services that retailers require.

In this article, we will discuss the MMJ merchant account and the benefits it can provide to marijuana businesses.

Understanding these benefits allows cannabis businesses to make informed decisions about their payment processing needs and take their operations to the next level.

What exactly is a merchant account?
Businesses can accept payments in a variety of ways, such as debit cards and credit cards, using a MMJ merchant account. Establishing the merchant account is governed by a contract with an acquiring bank to allow the settlement of payment card transactions. An independent sales organization (ISO) or a third-party payment processor may occasionally be involved. Whether a business gets into a merchant agreement with an acquiring bank directly or indirectly via a third party, the agreement obligates the merchant to follow the operational guidelines set forth by the card associations. Currently, most providers do not allow cannabis transactions on debit or credit networks. And that is where GreenLink comes in. It helps cannabis businesses navigate the challenges of credit and debit card processing.

Does a merchant account imply a credit card?
Although most people only think of credit cards when they think of merchant accounts, they also accept other forms of payment. Most financial institutions won't complete cannabis transactions using credit cards. However, you can already accept electronic payments if you have GreenLink in your corner because the merchant account has already been through the underwriting process. A simple flip of the switch will enable full credit card processing for legitimate merchant accounts. This is why it is so beneficial to have a reputable account with us.

What about a third-party payment processor?
A third-party payment processor (TPPP) is a solution that acts as a go-between for you and the acquiring financial institution. It may accept funds from branded card networks such as VISA and MasterCard, but this does not necessarily mean that your cannabis business is permitted to conduct card-based transactions. In some cases, TPPPs attempt to conceal the actual nature of a transaction by employing shell games, including loading a stored value card with a credit or debit card that is then used to purchase cannabis.

Another feature of TPPPs is that funds are typically held in the TPPP's account. It is not guaranteed that merchants will be paid, and it usually makes customers curious about where their money is held and for what purpose. An MMJ merchant account becomes the better option when it comes to receiving payments. Your current payment processor may be breaking the rules and exposing you and your business to risk if you do not have a transparent cannabis merchant account. Cannabis and CBD retailers must use a cannabis-specific payment processor that allows such transactions.

Why do you require a cannabis merchant account?
Accepting electronic payments is important for cannabis businesses. However, cannabis merchant accounts are frequently opened with false information. When banks and credit unions discover the actual nature of the transactions, they promptly close them. To make matters worse, you may be blacklisted by card associations, which may prevent you from acquiring a merchant account in the future.

A transparent MMJ merchant account is essential for long-term success. There will be no more shutdowns every few months. Such a transparent merchant account, such as the one provided by GreenLink, provides several additional advantages to cannabis-related businesses. Here are some key benefits:

Legitimate payment processing
One of the primary benefits of a MMJ merchant account is the ability to process legitimate payments. Since the cannabis industry still faces federal restrictions and is considered high-risk by traditional financial institutions, many businesses in this sector struggle to find reliable payment processing solutions. With a merchant account, businesses can accept credit and debit card payments, providing convenience and a familiar payment method to their customers.

Enhanced customer experience
By accepting card payments through a MMJ merchant account, businesses can offer a seamless and convenient customer experience. Customers no longer have to rely solely on cash transactions, which can be inconvenient and potentially risky. Accepting card payments improves accessibility and professionalism, leading to higher customer satisfaction and repeat business.

Increased sales
Experts suggest that businesses that accept credit or debit card payments generally experience higher sales and greater revenue than those relying solely on cash transactions. This is because customers tend to make more frequent purchases and spend more when they have the option of convenient, flexible payment through cards. By amending payment options, merchants may attract potential new clients and can plan to optimize their overall income potential by contributing to a broader customer base.

Better security and risk management
Carrying large amounts of cash can present significant security risks for both businesses and customers. With a MMJ merchant account, businesses can mitigate these risks by reducing their dependence on cash transactions. Card payments provide a more secure and traceable payment method, minimizing the risk of theft or loss associated with cash transactions. Additionally, reputable merchant account providers have robust security measures in place to protect sensitive payment data and ensure compliance with industry regulations.

Access to financial services
A MMJ merchant account allows cannabis businesses to access a range of essential financial services for their operations. This includes services like electronic fund transfers, online banking, managing transactions, and monitoring account activity. Having access to these financial services streamlines business operations and enables efficient financial management.

How to obtain a cannabis merchant account from GreenLink
Not every financial institution is willing to provide marijuana-related businesses with a merchant account, but GreenLink Merchants can assist in this regard. We can assist you in obtaining the best marijuana merchant account from a trustworthy financial institution. Contact us right away to begin reaping the benefits of a marijuana merchant account.