The capability to accept a credit card like a way of payment is not always an alternative for those merchants. Certain companies are considered heavy risk and as such find it hard to qualify for a credit card merchant account or card processing services. Merchants in industries considered dangerous must either consider other payment options or pay a lot higher price for your privilege of accepting charge cards.
There are many factors which might deem an enterprise “high-risk” in the world of visa or mastercard processing. In certain situations it may just be the credit ranking in the company owner, however in most cases it is the form of industry or business when 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 high-risk will be the medicinal marijuana industry- which can be legal in 16 states along with the District of Columbia. These high risk merchant account credit card processing experienced their card processing rights reduced or eliminated to the point where accepting cards for payment is tough otherwise impossible.
Merchants legally able 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 made to stop the illegal sale of marijuana. These merchants might discover themselves struggling to open and keep banking accounts that might otherwise be available with other merchants. While there are numerous actions taking place to try to even playing field for participants in the medicinal marijuana industry, like new bills being proposed to help these firms with tax issues along with other problems of the industry, visa or mastercard processing continues to be a concern.
At the begining of July, many medicinal marijuana distributors will discover themselves in the cold with regards to accepting bank card payments. The key reason why this industry has so many issues is because of the fact that despite being legal in particular states, the federal government fails to recognize the medicinal marijuana industry like a legal industry. Considered illegal by the federal government means other businesses like banks and credit card processors can be punished for “working” using a medical marijuana distributor or participant.
Similar to all kinds 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 case, higrisk for the processor who works specifically within one industry could be important to ensure services will almost always be available. A seasoned payment processor who is not merely willing but able to work by using a heavy risk merchant is truly the only option accessible to ensure bank card processing is undoubtedly an option. By planning to trade groups as well as other national organizations, those who are in this dangerous industry can find a processor willing to provide services with an affordable cost.