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What is the application process for a cannabis dispensary to get set up with a PIN debit merchant account?
Cannabis dispensaries cannot do credit cards. They’re not federally legal, but they can get a PIN debit merchant account. The process is a little bit more lengthy than for regular non-dispensary merchants who open a credit card processing merchant account, but that’s because this industry is regulated.
So the first thing you need is a bank account with a federally regulated bank because the transaction is going to go from your PIN debit terminal to your bank account. Other documents that you’re going to need for this application are docs that verify who the owners are. That means verification by tax return, that these people are really the owners and getting money from the dispensary.
Other documents that we need for the application are a copy of your cannabis license and the articles of incorporation. We need to verify that the signage out front matches the legal or DBA name that’s registered with your state, and we verify the storefront with a utility bill or a lease. And of course, we need a voided check so we know where the money is going to be deposited.
This documentation verification takes about three weeks, and that’s about half the time it takes to get a bank account set up. So why does a bank account take even longer? It’s because those regulated banks are having to produce all sorts of paperwork and audits on a regular basis to keep their license to accept cannabis dispensaries, so it takes about six weeks to set up a bank account. It takes about three weeks for a merchant account. The good news is, once you have your bank account, it’s generally the same information for the merchant account for PIN debit processing.
Give us a call at Electronic Money Company. I’m Gingergaye Hollowell and the number to call is 505-296-2847.
As you’re getting started with this process, I’m sure you’re going to have lots of questions. We’re here to help you out. Take care! video.
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