The ability to accept credit cards like a way of payment may not be a choice for all those merchants. Certain companies are considered heavy risk and as a result find it hard to be eligible for a credit card merchant account or card processing services. Merchants in industries considered dangerous must either consider other payment options or pay a significantly higher price for your privilege of accepting charge cards.
There are many factors which can deem a company “dangerous” on the planet of credit card processing. In certain situations it might simply be the credit ranking in the small business owner, however typically it will be the type of industry or business wherein the company operates. Online merchants or e-commerce businesses are considered high-risk in addition to any adult businesses or travel businesses. One specific industry targeted by processors as high risk is the medicinal marijuana industry- which is legal in 16 states as well as the District of Columbia. These high risk merchant services provider have had their card processing rights reduced or eliminated to the level where accepting cards for payment is tough or else impossible.
Merchants legally allowed to disperse marijuana for medicinal purposes often battle to operate their business despite being legally permitted to do so in particular states. Finding bankers and conducting normal business transactions may be hindered by laws built to stop the illegal sale of marijuana. These merchants might discover themselves struggling to open and keep banking accounts that might otherwise be available to many other merchants. While there are many actions occurring to attempt to even the playing field for participants from the medicinal marijuana industry, such as new bills being proposed to assist these companies with tax issues along with other problems related to the industry, credit card processing is still a challenge.
In early July, many medicinal marijuana distributors will see themselves outside in the cold in terms of accepting credit card payments. The key reason why this industry has a lot of issues is mainly because that despite being legal in certain states, the federal government is not going to recognize the medicinal marijuana industry as a legal industry. Considered illegal by the government means other businesses including banks and charge card processors can be punished for “doing business” with a medical marijuana distributor or participant.
Just like a number of other dangerous industries, individuals in the medicinal marijuana industry may be forced to look toward non-traditional choices to facilitate business transactions. In this case, higrisk for the processor who works specifically within one industry might be beneficial to ensure services will almost always be available. A highly skilled payment processor who is not only willing but capable of working using a high-risk merchant is usually the only option offered to ensure charge card processing is an option. By seeking to trade groups as well as other national organizations, those in this dangerous industry will find a processor willing to provide services at an affordable cost.