Canada’s federal legalization keeps it simple – dispensary owners are allowed to accept credit and debit cards for payments. This means there are plenty of reliable payment processing solutions, both integrated and non-integrated.
Things are slightly more complicated south of the border.
While cannabis consumption for medical and recreational purposes is legal in many states of the United States, marijuana and all its purchases are illegal under federal law. This has caused many problems for dispensaries in finding banks that can work with them – pushing many dispensary owners to look into alternative solutions for accepting payments and tracking transactions throughout the cannabis supply chain.
Editor’s Note: The following section is meant to educate readers and spread awareness only, and should not be considered legal advice.
We are continuously vetting payment methods to find the best option for our users and the most recommended alternative to cards is ACH (Automated Clearing House). Despite being the most reliable, most consumers are not familiar with ACH, and the one-time setup isn’t always popular amongst users who just want to make a quick purchase.
Another alternative for accepting payments at your dispensary is Cashless ATM, aka Point of Banking, a secure option that allows customers to pay with their debit cards. Unfortunately, crackdowns from payment processors like Visa and Mastercard made this solution less reliable and popular than it once was, but Cashless ATM is making a comeback as the more resilient vendors have evolved their solutions.
Also Read: Top 2024 Cannabis Payment Trends Dispensary Owners Must Know
Speaking of debit card-based solutions, there is (or was) also PIN Debit. With PIN Debit, you can charge the exact dollar amount instead of a rounded value but similar crackdowns have made it unfeasible in 2024, especially as your only option.
And of course, there are also cryptocurrencies. As of February 2024, cannabis dispensaries can accept various forms of cryptocurrencies including Bitcoin, ETH, Monero, etc. There aren’t any legal regulations that limit their ability to do so but we do not generally recommend cryptocurrencies because they are higher risk due to their unregulated nature. More importantly, a large portion of cannabis consumers would not have the technical know-how to pay with cryptocurrencies, and even the solutions that make it easier for them, don’t ease their apprehension about perceived risks.
Also Read: How to Choose a Legal Digital Cannabis Payment Solution (FAQs)