The cabability to accept bank cards being a method of payment may not be an alternative for all merchants. Certain businesses are considered dangerous and as a result struggle to qualify for a merchant account or card processing services. Merchants in industries considered high-risk must either consider other payment options or pay a far higher price for your privilege of accepting charge cards.
There are several factors which may deem a company “high-risk” worldwide of bank card processing. In some situations it might simply be the credit rating of your small business owner, however in many instances it is the kind of industry or business where the company operates. Online merchants or e-commerce businesses are considered dangerous as well as any adult businesses or travel businesses. One specific industry targeted by processors as heavy risk will be the medicinal marijuana industry- which can be legal in 16 states and also the District of Columbia. These high risk credit card processing have gotten their card processing rights reduced or eliminated to the level where accepting cards for payment is hard or even impossible.
Merchants legally capable to disperse marijuana for medicinal purposes often find it difficult to operate their business despite being legally permitted to do so in particular states. Finding bankers and conducting normal business transactions might be hindered by laws designed to stop the illegal sale of marijuana. These merchants may find themselves incapable of open and maintain banking accounts that could otherwise be around with other merchants. While there are several actions taking place to attempt to the playing field for participants from the medicinal marijuana industry, like new bills being proposed to assist these businesses with tax issues and also other problems of the industry, charge card processing has become a concern.
In early July, many medicinal marijuana distributors will discover themselves out in the cold in terms of accepting visa or mastercard payments. The key reason why this industry has a lot of issues is because of the fact that despite being legal in a few states, the federal government is not going to recognize the medicinal marijuana industry as a legal industry. Considered illegal by the federal government means other businesses for example banks and charge card processors may be punished for “operating” using a medical marijuana distributor or participant.
As with all kinds of other high risk industries, those who are in the medicinal marijuana industry may need to look toward non-traditional choices to facilitate business transactions. In this situation, higrisk for a processor who works specifically within one industry could be helpful to ensure services are usually available. A skilled payment processor who is not merely willing but capable of working by using a dangerous merchant is usually the only option offered to ensure bank card processing is an option. By looking to trade groups as well as other national organizations, those who work in this high risk industry can discover a processor happy to provide services with an affordable cost.