Credit Card Services For Medical Marijuana Dispensaries
Credit Card Services For Medical Marijuana Dispensaries
Why Credit & Debit Cards are Popular:
As any other business, Medical Marijuana Dispensaries are looking for different ways and methods to enlarge customer base, generate more revenues, and increase average purchase amount.
To do so, dispensary operators have recourse to different common strategies such as coupons, loyalty programs, advertising, etc. However, they overlook a very important factor that can instantly increase their total sales in 3 different ways.
Medical Marijuana Dispensaries have been always a cash-based businesses given to which extent it is hard and almost impossible sometimes to find a merchant services provider.
A lot of banks and credit card companies classify Medical Marijuana Dispensaries as a high risk business type, thus dispensaries have been denied access to credit card processing services and in turn denying them from a powerful revenue booster tool.
Offering the option to pay by credit card is a vital tool in today's business environment for the following reasons:
- Convenience: Nowadays consumers prefer carrying a plastic card over cash. It is easier, more convenient, and more trackable for individuals that like to keep an eye on their spending. Even when consumers carry cash on them, they tend to carry small amounts of cash.
- Availability of funds: Credit cards represent a line of credit consumers can use to pay for products and services they either cannot afford at the present time so they decide to pay for them later, or want to charge to enhance credit history, accumulate reward points, or any other reasons.Accordingly, a significant portion of consumers nowadays prefer using a credit card for payment over cash or even debit cards.
- Security: Credit and Debit cards enable consumers to pay for products and services without having to have cash on them especially if the purchase requires a somewhat large amount of money. Accordingly, in case of theft or robbery, consumers do not relinquish a large amount of cash for their safety but rather their credit or debit card which could be frozen or blocked with a quick phone call to your bank or credit card company.
Credit & Debit Cards Stats in the US:
Thanks to these benefits of using credit or debit cards for payment, the plastic cards have become a very popular form of payment as the following statistics demonstrate:
Total cards in circulation in U.S.
- Visa credit: 309 million, as of June 30, 2009 (Source: Visa.com)
- Visa debit: 352 million, as of June 30, 2009 (Source: Visa.com)
- MasterCard credit: 211 million, as of September 30, 2009 (Source: MasterCard.com)
- MasterCard debit: 130 million, as of September 30, 2009 (Source: MasterCard.com)
- American Express credit: 54 million, as of December 31, 2008 (Source: AmericanExpress.com)
- Discover credit: 57.1 million, as of December 31, 2008 (Source: Discover.com)
Total charges and transactions
- There were 26.5 billion U.S. credit card transactions in 2008, totalling $2.1 trillion. That's up from 21 billion transactions totaling $1.4 trillion in 2003. (Source: Nilson Report, December 2009)
- There were 34 billion U.S. debit card transactions in 2008, totalling $1.33 trillion. That's way up from 16.1 billion transactions totaling $583 billion in 2003. (Source: Nilson Report, December 2009)
- There were 5 billion U.S. prepaid card transactions in 2008, totalling $153 billion. That's way up from 2.5 billion transactions totaling $69 billion in 2003. (Source: Nilson Report, December 2009)
- Today, credit cards are responsible for more than $2.5 trillion in transactions a year and are accepted at more than 24 million locations in more than 200 countries and territories. (Source: American Bankers Association, March 2009)
- It is estimated that there are 10,000 payment card transactions made every second around the world. (Source: American Bankers Association, March 2009)
- Between 1989 and 2006, the nation's total credit card charges increased from about $69 billion a year to more than $1.8 trillion. (Source: Demos.org, April 2008)
Benefits of Accepting Credit & Debit Cards at your Dispensary:
On account of what preceeds, providing the option to pay by credit card is primordial to any business nowadays for that it will enable your dispensary to boost your revenues in several ways. Here's some of the advantages of accepting credit card at your establishment:
- First, according to the statistics in this article, there are over billion plastic card in circulation in the US only. Consequently, given that a significant portion of the consumers prefer using their credit or debit cards over cash for payment, dispensaries will be missing on a significant market share in the form of individuals who want to use their cards for payment.
- Second, we all, at least once, were in a situation where we have only few dollars in cash or no cash at all, and we are nowhere near an ATM machine but we want to purchase something. If the merchant does not accept credit or debit cards, he eventually lost the revenue he could have generated from us.
- Third, in the case a patient walks in your dispensary and he has enough cash to purchase one item but decides to purchase something else. Then you again lost that revenue because the patient cannot use his credit or debit card.
- Fourth, accepting credit cards at your dispensary will increase your customer loyalty for that they will choose your dispensary over a competing one that does not accept credit card payments. Even when they do carry enough cash on them, consumers will prefer to have more options so your dispensary will be a more appealing choice.
- Fifth, accepting credit cards will enable you to implement take-out service which can increase your sales and improve your service in the same time. On one hand, accepting credit cards will permit you to accept phone orders where patients can phone in their order, pay over the phone, and drive to pick up their prescription. All you need to do is to verify their ID, recommendation, and have them sign the credit card receipt saving them time, and providing them a better shopping experience.
The preceding are few of many examples of how accepting credit or debit card at your dispensary can increase your patient base, generate larger sale amounts, improve and expedite your service, and enhance your customer loyalty. The problem now is how to get approved for a merchant account which in turn will allow you to process credit card transactions.
The good news is that we made Café Cartel Systems your one-time stop for both your Point of Sale needs as well as credit card processing services. We simplified the process and did the homework for you so that you don’t have to waste your time researching and getting approved for a merchant account: