The opportunity to accept charge cards like a method of payment is not always a choice for many merchants. Certain companies are considered high risk and thus find it hard to be entitled to a processing account or card processing services. Merchants in industries considered high risk must either consider other payment options or pay a significantly higher price to the privilege of accepting credit cards.
There are various factors which could deem an organization “high risk” in the world of charge card processing. In some situations it may just be the credit history from the business owner, however generally this is the form of industry or business when the company operates. Online merchants or e-commerce businesses are considered dangerous and also any adult businesses or travel businesses. One specific industry targeted by processors as heavy risk is the medicinal marijuana industry- which happens to be legal in 16 states plus the District of Columbia. These high risk credit card processing merchant account experienced their card processing rights reduced or eliminated to the level where accepting cards for payment is tough 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 do so in particular states. Finding bankers and conducting normal business transactions could be hindered by laws designed to stop the illegal sale of marijuana. These merchants might find themselves struggling to open and keep banking accounts that might otherwise be available with other merchants. While there are many actions occurring in order to including the playing field for participants inside the medicinal marijuana industry, like new bills being proposed to help these companies with tax issues along with other problems of the industry, charge card processing remains a challenge.
At the begining of July, many medicinal marijuana distributors will find themselves outside in the cold in relation to accepting bank card payments. The key reason why this industry has numerous issues is because of the fact that despite being legal in a few states, the federal government does not recognize the medicinal marijuana industry as a legal industry. Considered illegal by the government means other businesses for example banks and charge card processors might be punished for “doing business” using a medical marijuana distributor or participant.
Much like a number of other dangerous industries, individuals in the medicinal marijuana industry may be forced to look toward non-traditional options to facilitate business transactions. In this case, higrisk to get a processor who works specifically within one industry could be beneficial to ensure services are always available. A highly skilled payment processor who is not merely willing but able to work with a high-risk merchant is often the only option offered to ensure charge card processing is surely an option. By looking to trade groups as well as other national organizations, those who are in this high risk industry will find a processor prepared to provide services at an affordable cost.