Cannabis Dispensary Merchant Accounts, Farm Bill, & More

Feb 13, 2019

It’s important for banks and payment processors to be prepared for a flood of inquiries from the industry. So, what should you know about banks accounts, merchant processing, and other financial accounts for your cannabis dispensary? Where can you get the best cannabis dispensary merchant accounts? This article is here to help you with all this.

The Cannabis Industry in the US

On December 20, 2018, the Farm Bill went into force as a huge opportunity for banks and payments companies to deliver banking, processing, and other services for those involved in the hemp industry.

Beyond any doubt, the 2018 Farm Bill opened up new doors for merchants interested in lawful hemp production in the country. However, both banks, payment processors, and other financial institutions can’t do without taking into account several questions that’re still open before starting their business.

The main focus of media and industry advocates has been associated with the legalization of hemp. They haven’t been that much focused on the fact that hemp will be brought into strict regulatory oversight in terms of both the federal and state levels.

So, both banks and payment processing companies interested in the hemp industry won’t succeed unless they become well aware of all the nuances of this regulatory framework. This will become more and more critical for them if they want to deliver proper banking and processing services in a safe manner.

When it comes to proper cannabis merchant account solutions and banking, these will be possible in the near future. Why? Well, this is because of:

  • The Farm Bill – It didn’t legalize cannabis but it’s a significant step in the right direction. Among other things, hemp and CBD are no longer illegal.
  • The States Act – Another powerful piece of legislation.
  • More State legalization.
  • World Health Organization – A subgroup of the organization began reviewing the benefits of medicinal cannabis to advise what proper class of cannabis should be internationally.
  • Canada – The revenue the Canadian dispensaries are generating, American businesses are turning their attention to their northern border, and the revenue in the US is being lost.

As for the existing uncertainties, lots of hemp businesses will move forward, and banks and payment processing companies will explore providing services to the industry.

Cannabis Dispensary Merchant Accounts

The recently adopted law, which is known as the 2018 Farm Bill, makes hemp legalized. This is expected to more and more encourage businesses involved in selling CBD oil and other hemp products to be on the lookout for reliable and affordable payment processing and merchant account solutions.

Thankfully, this can never be a problem if you work with a reputable payment processor and merchant funding provider like EMB, classified as the nation’s #1 high risk processor, offers the cheapest and the most secure cannabis dispensary merchant accounts in the industry. With,, you can be sure to get the right merchant services tailored to your own specific business needs.

Be aware that the above-mentioned law excludes hemp, which is any part, extract, or derivative of the cannabis plant with a THC concentration of not more than 0.3% on a dry weight basis. Though there’re some uncertainties in the law, some 3rd party merchant account providers will offer services to merchants running businesses in the hemp industry, such as businesses offering CBD oil.

However, these businesses will still be treated like other high risk merchants. So, the payment processing rates will be higher as compared to lower risk businesses. Besides, the control over this type of businesses will be stricter to ensure they’re away from any unlawful activities.

To sum up, this is the right direction for the federal government to move concerning the producers of CBD oil and other hemp products. Importantly, don’t get confused with some murkiness associated with the law: you can still obtain a proper merchant account and payment processing solutions for your business. Only, you should shop around to find a respectable merchant account provider like to start accepting credit cards for transactions at the best rates and with the best terms.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.