Hawaiian Dispensaries Have More Work Ahead of Them

hawaii-marijuanaNearly 500 people linked to more than 50 companies competed for licenses to operate Hawaii’s first medical marijuana dispensaries. While some well-known figures such as actor Woody Harrelson and tech entrepreneur Henk Rogers have already been identified (their applications were unsuccessful), a much fuller list of names has now become public, thanks to an attorney’s public records request. Well-known figures in Hawaii legal, business and political circles sought a piece of the action.

Eight companies were selected by the health department in April to receive licenses to grow and sell medical marijuana: three on Oahu, two in Hawaii County, two in Maui County and one in Kauai County. This is great right? Well, the major issue is that dispensaries are having a hard time getting off the ground. And it isn’t just the government making it an issue – but rather the banks.

Banks and other loan originators are against this business venture, thanks to the Fed’s illegalization of anything pot related. The banks are controlled by the Fed’s, so there lies the problem. Instead of mortgaging your home instead to fund your dispensary, you need to find the best funding choice available: A marijuana dispensary merchant account.

Is it hard to find? Yes – but you still need to make the right decision for your business. Choosing an educated and experienced dispensary merchant account provider, like MMJ, you can be assured that your business is in the best hands. Whether you do a lot of business or are just starting out, you can be confident that your funds and your customer’s information is safe and secure. One big issue with many dispensaries is that they are “cash only”, which not only limits their customer case, but also makes them a target for burglars.

Whether you are in a start-up dispensary or are an experienced medical marijuana dispensary owner, you need to make sure that you have a marijuana merchant account provider to help you get ahead in this tough business. “Cash only” is not an option – and you need to make sure that your customers can pay with numerous types of cards, apps, and checks to get their product – and for you to get the sell.

Hawaii on the Verge of Opening 16 Medical Marijuana Dispensaries

MedicalPotMany states have already taken a leap into the world of legalizing medical marijuana and Hawaii is the next to be added to that list. The House Bill 321 was passed by the full house on May 7th, which means the Governor is the only person needed to approve it now.

The bill basically allows for 8 licenses to be handed out. Each license allows for 2 dispensaries and 2 production facilities for a total of 16 dispensaries and 16 production facilities. This is a huge step for Hawaii that would be paving the road to full legalization of marijuana in the state.

Licenses come with hefty fees

Although the licenses are great news for entrepreneurs who want to take part in the start of a medical marijuana revolution, they also come with hefty fees. Applying for a license costs $5,000, which is non-refundable. With only 8 spots available, this means risking $5,000 for potentially getting denied.

In addition to the application fee, each dispensary will be required to pay an initial $75,000 fee for the license and another $50,000 every year to renew the license.

This means businesses in the marijuana industry will have to be quite successful simple to pull a small profit. With most banks refusing to work with cannabis businesses, this leaves them with a cash-only way of doing business.

Marijuana payment processing

Fortunately, there is an alternative method available for marijuana dispensaries; high-risk merchant accounts. Marijuana payment processing with high-risk merchant accounts allows cannabis dispensaries to accept credit card payments. This also allows them to deposit the funds and use them other than in cash only.

Payment processors such as MMA allow cannabis dispensaries to move forward and increase their income potential by accepting credit card payments. This also opens the doors for setting up home deliveries, which is greatly needed for many patients who suffer from sever illnesses. With mobile card readers and the ability to accept credit card payments, marijuana payment processing really saves the day for cannabis dispensaries seeking to get out of the cash-only way of running their business.

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