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February 27th, 2018

Complexities Untangled : Marijuana Business Gets the Burns of Social & Federal Acceptance

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Over the globe, marijuana business is named as illegal or socially not accepted due to its reputation as in bad world. Science has proved the medical benefits of marijuana but for a businessman, who touches this plant, it’s almost impossible to get through the questioning eyes of the officials.

Cannabis is an easy affair when done in cash but getting it online is crazy for most of the companies. From sales to closing a deal, process is similar to any other product or services of any field but when it comes to payments, no bank would show their support despite proper documentation and affirmations.


For millions of people with bank accounts, it’s easy to swipe their card and get their product delivered to their home. Look down for the steps that lead to a successful payment:

1. When the customer swipes the card through the payment machine, customer’s details are captured by the merchant computer. This system commutes this information to the merchant bank. This bank is responsible to convert this information into their records. Payment processors such as Mastercard, Visa or American Express are responsible to accept the payment when the information is transferred by the merchant banks.

2. Card network is responsible for cross-checking the card’s validity, account balance and whether the account holder is eligible to make the payment in question.

3. When all the security checks fall in place, the transaction is proceeded and payment is received by the network and goes to issuing bank.

4. Issuing bank confirms the payment from the merchant and the customer. If it is accepted, sum is transferred to merchant’s account after charging processing fee and card network fee.


Issuing bank, merchant account, card network and processor are not just enough to dread you. They play their role in making safe payments. But it’s not this simple to quote for the pot business. Certain difficulties that might come your way:

1. Laws Implications : Federal and State laws have been conflicting for Cannabis business. Despite the efforts to pass Marijuana Business Access to Banking Act in Congress, there’s being a dark tunnel to all the hopes. Due to stringent transportation and purchasing laws, it’s getting difficult to conduct a lawful business.

2. Reputation For Processors : It’s been clearly stated by some of the processors and car networks that they would never associate with a high-risk business like cannabis. This not only contracts the options for the businessmen but also rages the market with unfair conducts.

3. Processing Fees : Usually, an average of 2-3% of processing fees is charged for any business. However astonishing it might sound but it exceeds to 5-8% for cannabis business. The merchants keep their guards down if they’re able to get an account on 5% processing fee. But justice isn’t serviced.

4. Per Transaction Fee : This fee is typically defined by the nature of the business. On an average, any merchant would pay somewhere between $0.20 – $0.35 per transaction but it could extend up to 0.5-5% of the amount. Coming around the radar of 5% for cannabis, it is a huge loss on profits.

5. Monthly Fee : High risk businesses have to give more assurances when it come to costing of online payments. Monthly charges are one of the holes in the pocket. A good amount of revenues goes into surviving an account.

6. Chargeback Policies : Chargebacks can mess up with processors like nothing else. A high rate of chargeback makes the processor unable to receive payments. Basically, chargeback is accounted when a consumer fails or denies a payment for any reason. To minimize the risk, specialized policies are made for cannabis businesses. The most common way to elucidate this issue is by asking for escrow account from merchants. Whenever a chargeback occurs, payment is made from this account. Simply, there’s zero security from processors even after paying higher than average of all the businesses.


If you’ve had enough of financial mafias looting you due to your insecurities then make way for justice and financial freedom with us. Deceptive methods may show you a brighter future but they have to end once. The innovative financial minds have come up with extremely fluid methods to reduce the chargeback and come with techniques to eradicate the need of escrow accounts. We believe to provide our services to any level of risky industry because that makes us their first choice. To shun your concerns of high processing fees, rejection from society, transaction fees and more; you must take our free consultation and head to an alluring future. Our partnership with esteemed banks and processors will help marijuana merchant account holders to relish the benefits of their robust sales and increase their profit.

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