The cabability to accept credit cards as being a means of payment is not always a choice for all those merchants. Certain businesses are considered heavy risk and thus struggle to be eligible for a merchant account or card processing services. Merchants in industries considered dangerous must either consider other payment options or pay a far higher price for the privilege of accepting bank cards.
There are many factors which may deem an organization “high risk” on earth of bank card processing. In certain situations it could just be the credit ranking of your small business owner, however in most cases it is the form of industry or business where the company operates. Online merchants or e-commerce companies are considered dangerous in addition to any adult businesses or travel businesses. One specific industry targeted by processors as dangerous is definitely the medicinal marijuana industry- that is legal in 16 states along with the District of Columbia. These high risk cc processing experienced their card processing rights reduced or eliminated to the point where accepting cards for payment is actually difficult or else 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 certain states. Finding bankers and conducting normal business transactions may be hindered by laws designed to stop the illegal sale of marijuana. These merchants might discover themselves not able to open and sustain banking accounts that could otherwise be available with other merchants. While there are many actions taking place to try to even the playing field for participants within the medicinal marijuana industry, like new bills being proposed to aid these companies with tax issues as well as other problems associated with the industry, visa or mastercard processing has become a problem.
At the begining of July, many medicinal marijuana distributors will discover themselves in the cold in terms of accepting credit card payments. The main reason this industry has numerous issues is due to the fact that despite being legal in some states, the government does not recognize the medicinal marijuana industry being a legal industry. Considered illegal by the government means other businesses including banks and credit card processors may be punished for “operating” having a medical marijuana distributor or participant.
Just like all kinds of other dangerous industries, those who work in the medicinal marijuana industry may be forced to look toward non-traditional choices to facilitate business transactions. In this situation, higrisk for the processor who works specifically within one industry might be helpful to ensure services will almost always be available. A skilled payment processor who is not merely willing but able to work using a high risk merchant is truly the only option open to ensure charge card processing is definitely an option. By planning to trade groups along with other national organizations, those in this high risk industry can find a processor ready to provide services in an affordable cost.