The opportunity to accept charge cards being a means of payment may not be a choice for all those merchants. Certain companies are considered dangerous and thus find it difficult to qualify for a processing account or card processing services. Merchants in industries considered high risk must either consider other payment options or pay a much higher price for your privilege of accepting charge cards.
There are various factors which can deem an organization “dangerous” worldwide of credit card processing. In certain situations it may simply be the credit rating in the business proprietor, however typically it will be the form of industry or business in which the company operates. Online merchants or e-commerce companies are considered high-risk as well as 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 plus the District of Columbia. These high risk credit card processing companies experienced their card processing rights reduced or eliminated to the point where accepting cards for payment is difficult otherwise impossible.
Merchants legally allowed to disperse marijuana for medicinal purposes often find it difficult to operate their business despite being legally permitted to accomplish this in particular states. Finding bankers and conducting normal business transactions may be hindered by laws made to stop the illegal sale of marijuana. These merchants might find themselves struggling to open and maintain banking accounts that will otherwise be around with other merchants. While there are numerous actions going on to try to the playing field for participants within the medicinal marijuana industry, including new bills being proposed to aid these companies with tax issues as well as other problems of the industry, charge card processing has become an issue.
At the begining of July, many medicinal marijuana distributors may find themselves out in the cold with regards to accepting visa or mastercard payments. The main reason this industry has numerous issues is due to the fact that despite being legal in certain states, the federal government will not recognize the medicinal marijuana industry being a legal industry. Considered illegal by the federal government means other businesses for example banks and bank card processors could be punished for “conducting business” with a medical marijuana distributor or participant.
Just like a number of other high risk industries, those who work in the medicinal marijuana industry may have to look toward non-traditional choices to facilitate business transactions. In this case, higrisk for a processor who works specifically within one industry can be important to ensure services will always be available. A highly skilled payment processor who is not only willing but capable of working using a high risk merchant is often the only option offered to ensure charge card processing is definitely an option. By planning to trade groups along with other national organizations, those who work in this high risk industry can find a processor happy to provide services at an affordable cost.