The capability to accept bank cards as a means of payment might not be an alternative for all those merchants. Certain companies are considered high-risk and thus find it hard to be entitled to a merchant account or card processing services. Merchants in industries considered heavy 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 may deem a business “heavy risk” worldwide of charge card processing. In some situations it might just be the credit history in the business owner, however in many instances it is the type of industry or business in which the company operates. Online merchants or e-commerce businesses are considered heavy risk and also any adult businesses or travel businesses. One specific industry targeted by processors as dangerous may be the medicinal marijuana industry- which can be legal in 16 states plus the District of Columbia. These high risk credit card processing have experienced their card processing rights reduced or eliminated to the stage where accepting cards for payment is hard or even impossible.
Merchants legally capable to disperse marijuana for medicinal purposes often find it hard to operate their business despite being legally permitted to achieve this in some states. Finding bankers and conducting normal business transactions could be hindered by laws built to stop the illegal sale of marijuana. These merchants could find themselves not able to open and look after banking accounts that would otherwise be around with other merchants. While there are various actions going on in order to even the playing field for participants inside the medicinal marijuana industry, for example new bills being proposed to help these firms with tax issues and also other problems associated with the industry, bank card processing remains a challenge.
At the begining of July, many medicinal marijuana distributors will discover themselves out in the cold with regards to accepting visa or mastercard payments. The key reason why this industry has so many issues is mainly because that despite being legal in particular states, the federal government fails to recognize the medicinal marijuana industry as being a legal industry. Considered illegal by the government means other businesses such as banks and bank card processors can be punished for “working” by using a medical marijuana distributor or participant.
Much like a number of other dangerous industries, those who are in the medicinal marijuana industry may be forced to look toward non-traditional options to facilitate business transactions. In this situation, higrisk for the processor who works specifically within one industry might be helpful to ensure services are usually available. A highly skilled payment processor who is not merely willing but capable of working with a high-risk merchant is often the only option available to ensure credit card processing is definitely an option. By looking to trade groups and also other national organizations, individuals in this dangerous industry can discover a processor ready to provide services in an affordable cost.