Cannabis Merchant Account

Complete Merchant Services for Cannabis Products & Dispensaries

The cannabis industry boom in North America is just getting started. It is the opinion of this writer that we will see federal legalization happen in the next 1-5 years. With 11 states passing a fully legal cannabis bill and over 30 states with some sort of medical bill on the books, the cannabis industry will continue rapid growth.

As for our neighbors, Canada fully legalized the herb in 2018 and Mexico is in serious talks to do the same. So, why are U.S.-based banks and processors still hesitant to get involved with this green rush? Many federal insured banks do not want to put their merchant-acquiring license at risk. Therefore, they choose to stay on the sidelines awaiting a full legalization bill to pass.

Performance Card Service (PCS) has been actively developing cannabis payment processing solutions for each segment of the industry for many years. We are now proud to offer cannabis merchant accounts that support ancillary products in the industry. Products and services such as devices, packaging, logistics and marketing that were once a challenge to obtain are now easy.

We are excited to offer several cannabis payment solutions that cater to your specific needs. Here are the three main processing solutions we are offer today:

  1. Dispensary Payment Processing Solution for making payments right from your smartphone! No hardware, devices, setup fees or contracts. Currently, it’s the only legal and compliant payment platform in the cannabis dispensary industry. Customers simply register, link their bank account and can then immediately make purchases at the store, online and for delivery. Enjoy high customer adoption levels with our $10 in store credit promotion for anyone who signs up! Learn more about this exciting dispensary payment option.
  2. eCheck Processing Solution for medical and recreational cannabis, as well as ancillary products. Our eCheck providers understand the cannabis industry and have been supporting it for many years. Since we hold agreements with multiple eCheck providers, we can usually find the right fit for your niche in this fast-paced industry. eCheck processing services can integrate directly to your website’s shopping cart so customers can pay while shopping on the web.
  3. Traditional Credit Card Processing Solution for merchants who sell ancillary cannabis products. PCS can offer these types of accounts to anyone in the cannabis industry that is not selling the actual cannabis product. We have worked with dozens of ancillary businesses such as cannabis marketing sites, merchants who sell a device to grind cannabis flowers, businesses who provide storage and packaging for cannabis, as well as many others.


Does cannabis dispensary credit card processing exist?

Short answer, not legally! But we are very excited to report that we now have a digital payment solution that merchants and customers LOVE — and one that is super customer-friendly, flexible and easy to set up. In addition, the system has already been proven to help cannabis dispensaries increase sales and average ticket size. This is really one payment solution every dispensary should be looking at as soon as possible.  

The fact that our system is digital makes all the difference. Dispensaries still cannot take credit cards legally because they wouldn’t be compliant if they did. Merchant accounts are backed by Visa and Mastercard in conjunction with an acquiring bank. These banks are federally insured and therefore need to stay within the parameters of a federally legal business, and cannabis does not yet fall into this category. Until the federal government enacts a legalization bill, getting legal credit card processing for dispensaries is unlikely. Nevertheless, our digital payment solution, which allows bank-to-bank cannabis transfers, is a registered Money Services Business with FinCEN and has a State Required Money Transmitting License. This means that your dispensary can use this system with confidence and not be subject to penalties for noncompliance or have operations shut down. 

The primary payment system we offer for cannabis dispensaries is very intuitive for customers and extremely flexible. Customers have the option of using it to pay in the store, at curbside or after a delivery. How does it work? The customer registers on the system app, links to his/her bank account, and then is ready to place orders. The system easily integrates with your store’s online ordering system, curbside pickup system and delivery system. One additional nice feature of the user app is the customer’s ability to tip the delivery driver. In this difficult economy, we are happy to make paying drivers their hard-earned tips easy and convenient. 

This system is a major development for cannabis dispensaries. When dispensaries were limited to cash, this restriction made life difficult for some of their customers, created enormous risk and expense due to the holding and transporting of cash, and made online ordering difficult or not really practical.  

With our new system, this has all improved dramatically. Customers can order from home, or anywhere they are as long as there is an internet connection. And, especially in this pandemic environment, customers avoid the need to come into the store and risk exposure to illness. And, for customers who do come into the store, having a touchless payment experience will definitely improve customer satisfaction and encourage return visits. Because online ordering and delivery are so convenient, customers will most likely continue to seek out this type of ordering long after COVID-19 is behind us.  

Statistics indicate our new digital payment solution is helping dispensaries achieve dramatic growth — including a 17% average increase in average ticket versus other payment methods and a near 30% increase in customer frequency. Dispensaries report rapid adoption, which is not surprising, since with the advent of COVID-19 many restaurants and retail stores have implemented online ordering and delivery systems. Dispensary customers who may have found an online system such as this unfamiliar even a year ago may be using something very much like it every day now! 

More information about this payment solution is available here. In the meantime, if you’d like to learn more and get started, please contact us now.

What types of payments can I accept in my dispensary?

Performance Card Service's primary dispensary payment solution allows your customers to pay in store, at curbside and for delivery. Customers simply sign up, link their bank account and pay instantly! We even give each customer a $10 credit just for signing up. We find that this dramatically increases customer adoption of this payment option. As a store owner, you can feel confident that you are utilizing one of the only cannabis-compliant payment options on the market. The phrase 'cash is king' is outdated when it comes to dispensaries since just accepting cash leaves you vulnerable to theft as well as to incurring the heavy expense of hiring armored cars to move the money.

What types of payments are legal for us to accept from customers?

Our favorite dispensary payment solution as described above is one of the only legally compliant payment options for dispensaries. While many merchant groups will try to sell you a card swiper that takes debit and credit, these solutions are technically not complaint since Visa/MC have not given the green light, which will not happen until the federal government legalizes cannabis. Our solution is a registered Money Services Business with FinCEN and has a State Required Money Transmitting License. With PCS you can rest assured that you are not going to be shut down or see your funds frozen for non-compliance.

What is the pricing of your different payment solutions?

Our primary payment solution for dispensaries as described above has simple, straightforward pricing. Merchants pay just 3.99% per transaction. No setup fee, no monthly fee and no expensive equipment to purchase. We highly recommend this digital payment solution to dispensaries for its ease of use, high customer adoption rate and cannabis-compliant status.

We also offer eCheck processing for any cannabis and cannabis-related business. Rates and fees for this service vary based on the actual product type, but you can expect to pay 2.90%-4.90% plus a small transaction fee to process eChecks.

Lastly, we offer reasonably priced credit card processing for any auxiliary cannabis business. We have worked with dozens of ancillary businesses such as cannabis marketing sites, merchants who sell a device to grind cannabis flowers, businesses that provide storage and packaging for cannabis, as well as many others. Rates for this service range from Interchange plus 0.49%-2.49% depending on merchant volume.

How does the system work?

Our primary dispensary payment solution allows your customers to pay in store, at curbside and for delivery. Customers simply register, link their bank account and purchase cannabis. When signing up, a customer chooses a 5-digit pin to approve a cannabis purchase as well as receive a text to verify. This system also integrates into your website for online ordering of curbside pickups and deliveries. No hardware purchase required. All you need is a laptop, desktop or mobile device, and you can be up and running in 24-48 hours. See more details here.

Our eCheck and ancillary credit card processing options integrate to your website using plugins for all major platforms, including Woo Commence, Magento and Shopify.

Can you offer payments for delivery?

Yes! Dispensaries love our digital payment solution because it allows customers to pay for cannabis from the comfort of their own couches. Customers even have the option to tip the delivery driver and request a contactless drop-off at their doorstep. This payment solution is more convenient and safer than cash. Customers simply choose delivery, select their products, pay for cannabis and the goods are on the way to their door. We also help merchants scale their delivery services and increase those profit margins.

Dispensaries that utilize this option see rapid growth in online orders without worrying about the industry’s constant regulatory changes.

Can you offer payments for curbside contactless pickup?

Yes! Nowadays and in a post-pandemic world, we are seeing a huge increase in the popularity of contactless pickup options. Dispensaries love our digital payment solution because it allows customers to pay for cannabis from their homes or cars and request a contactless pickup at the store. Customers even have the option to tip their trusty budtender for all the hard work. Plus, our digital payment solution is more convenient and safer than cash. Why worry about exposing yourself to germs and waiting in a long line when you can just order online, pay and pickup at your leisure?

What are the benefits to taking other forms of payments in my dispensary?

The most notable benefit is an increase in the average ticket that in turn increases total volume. Our numbers speak for themselves:

  • 11% total consumer adoption in first 90 days
  • 17% increase in average ticket vs other payment methods
  • 27% increase in customer frequency
  • 40% increase in average ticket with promotion
  • 780% month over month customer adoption rate
  • 100,000+ active customer network

Increases in revenue aside, our digital cannabis payment solution also gives your dispensary a level of legitimacy with customers. We have also seen an increase in customer loyalty and overall satisfaction with the payment process. Giving customers multiple options to make payments helps ensure that all buyers are welcome.

Will taking other forms of payment increase my ticket size? Total volume?

Yes! An increase in ticket size almost always leads to an increase in total volume. Our digital payment option for dispensaries sees on average a 17% increase in average ticket for repeat customers and as much as a 40% increase in average ticket with our new-customer promotion. We believe in our digital cannabis solution so much that we give every new customer $10 to use in store just for signing up. When customers feel comfortable with their payment type, they tend to spend more money per order. If a shop is offering only cash as a payment option, customers are limited to what is in their wallet. Give them more payment options and see ticket and total volume skyrocket!

Do customers want to pay for cannabis in other ways besides cash?

Yes! Cash is great for many things but a major drawback to offering only cash as a payment option is people are carrying less and less cash these days. If customers have only $20 in their pocket, they will spend only $20 in your shop — but they may want to spend much more. Cannabis users want to pay with a method that allows them to digitally access cash they already have with ease. In a world where even touching money may be seen as unsafe, offering a digital payment option is imperative. Let your customers save their cash for the bus and give them the option to pay for cannabis digitally!

Do your payment systems offer an option for customers to add a tip for the budtender/delivery?

Yes! Our digital cannabis payment solution offers an exclusive tipping function. At the end of every transaction, the customer is prompted to add a tip if he or she so desires. Now customers can show a budtender or delivery driver a little extra appreciation for dropping off their favorite products. We find that having a tipping option helps increase the quality of customer and staff relations. Just like you would tip for a pizza delivery or for a drink at a bar, we love that we can tip our fearless budtenders and delivery drivers for all their hard work. Tipping is not mandatory, so users can just click through if they choose not to tip on a transaction.

Why are your solutions better than just having an ATM in shop?

We get asked this question quite a bit since ATMs in shops are so prevalent. The biggest issue we see with ATMs is the convenience fee. This can often be as high at $4 per transaction and that does not include many card-issuing banks’ separate fees for using a non-network ATM. Customers just don’t like wasting money on ATM fees! With cannabis taxes being so high, consumers want to maximize their funds when they shop. Another reason we like our digital cannabis payment option more than ATMs is it gives your shop a level of credibility and trustworthiness. Customers like to frequent shops they know, and an overpriced ATM in the corner doesn’t really promote loyalty.

Do I need to purchase equipment to process transactions?

No! No hardware or POS integration is required for our digital cannabis payment solution. Dispensaries need only a laptop, desktop or mobile device, and they can be up and running in 24-48 hours. Customers pay using their mobile device, tablet or laptop – it’s all-digital! A customer simply registers for an account, links his or her bank account and purchases cannabis in your store or for delivery. No expensive and lengthy contracts for equipment that becomes outdated after a couple of years. Since you can cancel at any time, you stay in the driver’s seat. Also, with PCS dispensaries will always enjoy no cancelation fees and no equipment to send back.

How long does it take to sign up?

The signup process for both merchants and customers is a breeze! Dispensaries can sign up in minutes and usually start taking payments in 24-48 hours. Customers usually sign up in under 5 minutes, giving just a few pieces of information and linking their bank account. Our solution is such an easy way to take payment from your customers that you'll wonder why you didn't do it sooner. We are so sure you will be thrilled with our digital payment solution that we are giving every customer a $10 credit to use in your shop.

What type of licensing do your solutions have to process payment/transmit money?

We were so tired of seeing non-compliant cannabis payment programs that we wanted to make sure ours was the exact opposite. So, we took the time and energy to do it right the first time. Our digital cannabis solution is a registered Money Services Business with FinCEN. Being a Bank Sponsored ACH Originator helps ensure that your money is safe from the time of the transaction to its deposit into your bank account. Unlike other non-compliant options in the cannabis space, you never need to worry about your funds being held or the solution getting shut down without notice. We are here for the long run and want to see your business grow with us!

Contact Us Today!

No matter where you fit in with the cannabis industry, we can assist your business! We work closely with our processing partners to ensure each solution is the best fit for each merchant. We are excited about working with new and existing cannabis companies and look forward to connecting with you. Please contact us today to speak to an expert about what Performance Card Service can do for your cannabis business.

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