The ability to accept a credit card like a method of payment is not always an option for those merchants. Certain businesses are considered high risk and as a result find it hard to be eligible for a processing account or card processing services. Merchants in industries considered dangerous must either consider other payment options or pay a much higher price for your privilege of accepting credit cards.
There are many factors which could deem a business “high risk” in the world of visa or mastercard processing. In certain situations it could simply be the credit ranking from the business owner, however in most cases it is the type of industry or business when the company operates. Online merchants or e-commerce companies are considered high-risk as well as any adult businesses or travel businesses. One specific industry targeted by processors as heavy risk is the medicinal marijuana industry- which can be legal in 16 states plus the District of Columbia. These high risk credit card processing experienced their card processing rights reduced or eliminated to the point where accepting cards for payment is difficult otherwise impossible.
Merchants legally capable to disperse marijuana for medicinal purposes often find it difficult to operate their business despite being legally permitted to accomplish this in a few states. Finding bankers and conducting normal business transactions could be hindered by laws created to stop the illegal sale of marijuana. These merchants may find themselves struggling to open and sustain banking accounts that would otherwise be around to other merchants. While there are many actions happening to try and even playing field for participants inside the medicinal marijuana industry, including new bills being proposed to assist these companies with tax issues as well as other problems of the industry, visa or mastercard processing remains a challenge.
At the begining of July, many medicinal marijuana distributors will find themselves outside in the cold in terms of accepting charge card payments. The reason this industry has a lot of issues is simply because that despite being legal in a few states, the government will not recognize the medicinal marijuana industry being a legal industry. Considered illegal by the government means other businesses such as banks and credit card processors could be punished for “working” having a medical marijuana distributor or participant.
Much like many other heavy risk industries, those in the medicinal marijuana industry may need to look toward non-traditional choices to facilitate business transactions. In cases like this, higrisk for any processor who works specifically within one industry can be useful to ensure services are always available. An experienced payment processor who is not only willing but capable of working having a high risk merchant is often the only option open to ensure credit card processing is undoubtedly an option. By trying to trade groups and other national organizations, those who work in this heavy risk industry can discover a processor happy to provide services with an affordable cost.