The ability to accept bank cards being a way of payment might not be a possibility for all merchants. Certain companies are considered dangerous and thus struggle to be eligible for a processing account or card processing services. Merchants in industries considered heavy risk must either consider other payment options or pay a far higher price for your privilege of accepting charge cards.
There are numerous factors which may deem an enterprise “dangerous” worldwide of bank card processing. In certain situations it could simply be the credit history of the small business owner, however in most cases this is basically the sort of industry or business wherein the company operates. Online merchants or e-commerce businesses are considered high-risk and also any adult businesses or travel businesses. One specific industry targeted by processors as high risk is definitely the medicinal marijuana industry- which happens to be legal in 16 states and also the District of Columbia. These high risk credit card processing companies experienced their card processing rights reduced or eliminated to the stage where accepting cards for payment is difficult if not impossible.
Merchants legally able to disperse marijuana for medicinal purposes often find it hard to operate their business despite being legally permitted to accomplish this in some states. Finding bankers and conducting normal business transactions could be hindered by laws created to stop the illegal sale of marijuana. These merchants may find themselves unable to open and sustain banking accounts that could otherwise be around to other merchants. While there are numerous actions going on to attempt to including the playing field for participants from the medicinal marijuana industry, such as new bills being proposed to assist these companies with tax issues as well as other problems related to the industry, charge card processing remains an issue.
At the begining of July, many medicinal marijuana distributors will find themselves outside in the cold when it comes to accepting credit card payments. The reason this industry has countless issues is due to the fact that despite being legal in particular states, the federal government is not going to recognize the medicinal marijuana industry being a legal industry. Considered illegal by the federal government means other businesses for example banks and visa or mastercard processors may be punished for “working” by using a medical marijuana distributor or participant.
Similar to a number of other high risk industries, those in the medicinal marijuana industry may be forced to look toward non-traditional options to facilitate business transactions. In cases like this, higrisk to get a processor who works specifically within one industry could be useful to ensure services are always available. An experienced payment processor who is not only willing but able to work with a high-risk merchant is usually the only option accessible to ensure bank card processing is surely an option. By seeking to trade groups as well as other national organizations, those who are in this high-risk industry can see a processor willing to provide services at an affordable cost.