In the many businesses that women lead in, marijuana isn’t usually what you think of. Due to 13 states legalization of recreational and/or medical marijuana, women have taken the reigns of this up and coming legal business. In 2015 the industry brought in around $5.4 billion, and many of those profiting were women. Some are savvy, long-driven business women, and others were simply mothers who wanted to help the public gain access to much-needed (and wanted) medical marijuana. Whatever the reason – and whomever the merchant – these women are taking the United States by storm, but there is one thing that can hold them back.
That “one thing” isn’t their sex, or even legislation which still regards marijuana as a federally illegal substance. The issue at hand is the perceived lack of dispensary check processing options. The industry is held to a “high risk” standard, which severely limits the merchant’s ability to find check processing. The “high risk” label is placed upon industries and merchants whom the financial and processing industry think will have a harder time staying in business. This not only includes legalized marijuana sales, but also car dealerships, e-cig shops, and adult toy shops. The main problem is the risk of chargebacks with these companies. While a chargeback and hit any company, those categorized as “high risk” typically have an increased occurrence.
While some chargebacks cannot be controlled, there are things that you can do, especially if you have a “high risk” business. First off, you need to search for the best check processor for your business. Sometimes the search is easy, but for some merchants the search can take a long time. For instance, a legalized marijuana business can have a harder time finding a check processor for their business, due to the business’s illegality in the Fed’s eyes. Be careful when looking for “all in one” high risk check processors, because while they may claim to cater to all high risk merchants, they may not be experienced enough to deal with the issues that arise within the legalized marijuana industry. Instead, look for a processor who specialized in legalized marijuana businesses, such as MMA.
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