If you’ve ever managed a cannabis dispensary, you know firsthand how unpredictable payments can get. What worked yesterday might be banned tomorrow, and keeping up sometimes feels like a full-time job. You might have heard buzz about cashless ATMs as a clever workaround for accepting cards - and for good reason. They opened doors to modern, convenient payments in a space that’s long been cash-dependent. But as with most innovations in cannabis, there’s nuance. Let’s unpack what’s changed and how you can make the smartest move for your business.
Cashless ATMs, also known as "point of banking" systems, let customers pay with debit cards when banks wouldn’t normally process cannabis transactions. The process mimicks your typical ATM experience - customers pop in their debit card, punch their PIN, and pick a rounded-up withdrawal amount. The transaction clears like cash, giving dispensaries a faster, more convenient checkout flow while customers enjoy not having to visit an actual ATM. With the introduction of this tech, many dispensaries saw higher average ticket sizes thanks to the ease of card-based payments. It's proven that customers tend to spend more when they can use their card. If you want a breakdown of how these systems function, Basis Theory has a great explainer, and BankCard International Group sheds more light on the rounding-up habit.
It’s easy to see why retailers adopted cashless ATMs so quickly. Locked out of traditional banking, dispensaries were desperate for secure, efficient payment options. Cashless ATMs brought a sense of normalcy to cannabis checkouts, boosting sales and improving the customer experience. Bloomberg covered how widespread these systems became across legal states.
However, in late 2022, the payment landscape shifted when card networks tightened enforcement around cannabis transactions. Visa’s warnings became action, and processors began restricting noncompliant programs. It was a wake-up call for dispensaries — not a failure of the idea, but a signal that regulation had caught up with innovation.
The issue wasn’t that cashless ATMs were inherently unsafe, but that some versions operated in a gray zone. Forbes highlighted how certain setups processed disguised transactions, which created compliance headaches for banks and networks. The American Banker hammered home how noncompliant these systems were. emphasized how transparency and proper processing are key.
In short: the idea was solid, but execution needed guardrails.
For many dispensaries, the convenience and higher transaction values that come with cashless payments make them too valuable to dismiss outright. Customers expect the ability to pay with cards, and those who can accommodate that expectation often see stronger sales and repeat visits.
Still, retailers need to evaluate risk tolerance and ensure they’re operating above board. The good news is, with guidance and the right partners, you can find solutions that deliver the same smooth experience, legally and reliably. Talk to Cova so we can walk you through your options and help you make an informed decision about what’s best for your business:
Modern dispensary owners don’t have to rely on shortcuts. There are compliant, customer-friendly systems that maintain the convenience of cashless ATMs while meeting all regulatory standards. These include:
Cova Pay integrates these methods directly into your POS system, simplifying your checkout while maintaining compliance. You can explore these options in greater detail in our Cannabis Dispensary Payment Guide.
Accepting modern payments isn’t just about convenience, it’s about growth, efficiency, and security. With the right tools, dispensaries can reduce operational risk, improve customer experience, and keep revenue flowing smoothly. At Cova, our payments suite is built for this exact balance.
Here’s how we help future-proof your checkout:
Cashless ATMs marked a major step forward for cannabis retail, proof that customers want modern payment options and that dispensaries are ready to innovate. As the industry evolves, the goal isn’t to avoid progress but to adopt smarter, safer versions of it.
If you’re ready to see your payments get a clean bill of health, book a demo with our experts and let’s look at your options together. We’ll guide you through your options so you can make confident, informed decisions about your payments strategy.