The ability to look at credit cards being a method of payment is not always an option numerous merchants. Certain businesses are considered high risk and as such find it harder to qualify for business relationship or card processing services. Merchants in industries considered dangerous must either consider other payment options or pay a significantly higher price for your privilege of accepting credit cards.
High Risk Merchants
There are some factors might be deem a small business “high risk” in the joy of credit card processing. In a few instances it should be the finance history of the business owner, however usually it may be the type of industry or business the place that the company runs. Online merchants or e-commerce businesses are believed to be high risk as well as anyone businesses or travel corporations. One specific industry targeted by processors as high risk merchant account is the medicinal marijuana industry- that is legal in 16 states as well as the District of Columbia. These merchants have had their card processing rights reduced or eliminated until accepting cards for payment is difficult if possible.
Medical Marijuana Dispensers
Merchants legally allowed to disperse marijuana for medicinal purposes often struggle to operate their business despite being legally permitted to do so in certain states. Finding bankers and conducting normal business transactions may be hindered by laws designed to stop the illegal sale of marijuana. These merchants may find themselves in order to open and keep banking accounts that would certainly be to be able to other services. While there are several actions coming about to these types of even the playing field for participants in the medicinal marijuana industry, because new bills being proposed to help these businesses with tax issues along with other problems of the industry, payment processing continues to be an issue.
Services Terminated For Distributors
In early July, many medicinal marijuana distributors uncover themselves in the cold when we try discussing accepting payment card payments. The true reason for this industry has a lot of issues is set to the fact that despite being legal in some states, the government does not recognize the medicinal marijuana industry as the legal industry. Considered illegal by the federal government means other businesses such as banks and credit card processors end up being the punished for “doing business” with a medical marijuana distributor or participant.
Options To do this High Risk Industry
As with many other high risk industries, those who are in the medicinal marijuana industry may be forced to look toward non-traditional options to facilitate transactions. In this situation, looking for finding a processor who works specifically within one industry may be helpful to ensure services often available. A professional payment processor who is not just tricky willing but able to help you a high-risk merchant is truly the only option available to ensure credit card processing is actually definitely an option. By looking to trade groups as well national organizations, those in this particular high risk industry can discover a processor willing to produce services with an affordable cost.