Payments. Ecommerce. Profits.


Guide to the Cash Discount Program for Dispensaries

Credit card processing issues are a major headache for dispensary owners across the country. Although many claim to have the ability to accept credit cards, this is often not the case. Aside from that, it’s getting harder and harder for dispensary owners to save money as credit card processing fees continue to rise.

People prefer credit and debit cards, as with this payment method, they get points and ranks from the card companies, which is a bonus for them. But accepting payments through a card is a hurdle in gaining profit from sales for business owners. But with cash discount processing, running a dispensary becomes twice as easy.

This program provides cash discounts to customers who pay with cash. Furthermore, the money goes straight to your bank account, and there are no hidden fees. In this article, we will discuss all the uses of a cash discount program. We will also explain the benefits this program has to offer.

What Is the Cash Discount Program?

Due to the cash discount program, dispensary owners can save money on transaction fees that come with credit card payments. It includes the cost of processing in the bills that customers pay, so the business’s owners don’t have to. With the increasing taxes and overall retail prices of drugs, dispensary owners now use the cash discount program more frequently.

Many payment solutions have been introduced in the business field, but only a handful of them are reliable enough for long-term use. Furthermore, this program also benefits customers who choose cash as their payment method. Not only does it help customers save some cash, but the cannabis retailers can also do the same. Moreover, this program encourages customers to change their traditional processing payment options.

The cash discounts benefit the customers, and the business expands with the increase in customers. This program also doesn’t charge any monthly fees from the customers or the business owners. So it is a win-win situation for both, making cash discount programs more prevalent.

Benefits of the Cash Discounting Program

Guide to the Cash Discount Program for Dispensaries

A cash discount program has several benefits and can prove to be really resourceful. The POS is made to work in such a way that on credit and debit card transactions, the system adds the transaction fees to the customer’s bill and saves you from losing your profits. As you get many benefits from the cash discount program, we have managed to list the most important ones so you can get a general idea of the program and its benefits.

  • No Limits Unlike Credit Card Payments

People prefer using credit cards for making payments worldwide because of their ease of use and convenience. But the majority of card brands have transaction limits, which often halt the payment process. It makes payment difficult for customers at times and puts businesses at high risk too.

However, this problem does not exist in the cash discount program. When paying with cash, there are no rules and restrictions of a company you need to follow; all you need is some cash. This also brings a swift increase in your business’s cash sales and makes your life somewhat easier.

  • Increase in Sales and Profit

With an increase in cash sales, the profit of your business increases. People love when they get discounts on their favorite products/drugs. And with the cash discount program, you can provide hefty discounts on cash payments. With this, the percentage of card payments decreases, and this way, you can earn more than your usual profit, even with the discounts you provide.

  • No Need to Wait

It takes at least 24 hours for the funds to be transferred to your account after a successful transaction by the customer. This can be frustrating at times when you are short of money. Furthermore, when a weekend arrives, it can take a couple of days for the funds to be transferred to your account because transactions are not made on weekends.

But with the cash discount program, all your payments come straight to your hand, and you can store them wherever and whenever you want. You don’t have to wait for several days to receive your money. This makes business much more manageable and handling cash much less frustrating.

  • Cannabis Payment Solutions

Cannabis is a widely used substance, and people love it for a variety of reasons. From treating mild chronic pain to feeling relaxed at night, it is used for all purposes. But with the increase in its popularity, many cannabis payment solutions and scams have also prevailed.

People sell faulty cannabis products laced with harmful substances and sell them at a lower price. This happens very seldom in dispensaries, but one can only be too careful. And the worst part is that when you order online, you don’t know what you’re ordering as you can’t check it before.

The cash discount program encourages people to physically visit the dispensary, check the product, make sure it’s authentic and then make the payment via cash. This really makes things much simpler and easier.

Customers can quickly pay with cash without facing any restrictions. This brings an increase in profits as more and more customers enter through your door and buy your products.

  • Easy to Start

Guide to the Cash Discount Program for Dispensaries

You might be thinking that setting up a cash discount program is challenging. But to everyone’s surprise, it is the easiest thing you can do for your business with the least hassle. All you have to do is find a trustworthy merchant account provider and discuss the plan.

They will tell you about the details of the program, and then you can decide what you need in the program. You will probably need a credit card terminal, POS, credit card processors, etc. Shift processing is a well-known merchant and offers an outstanding cash discount program. There are other high-risk merchants in the market which you can look for.

Problems of Running Dispensaries

Running a dispensary can be hectic. Every day, small dispensary owners face several challenges that customers are not even remotely aware of. We cannot list all kinds of problems as they differ from person to person. But we made a list of the most general issues in today’s world.

  • Promotion Through Social Media

Technology is advancing so quickly that many companies are now using the web to do most or all of their advertising. However, you need to put in a lot of time to make this marketing strategy successful. But doing so will not provide you with a 100% surety that it will make your business successful. Even with all the perks, social media has its fair share of trouble.

One negative comment can result in a bad reputation, destroying all your efforts. Furthermore, promoting your business requires you to spend money on several things, which will be deducted from your pocket. So although social media is necessary, you must tread carefully and maintain your reputation.

  • Rising Costs of Medicines

Guide to the Cash Discount Program for Dispensaries

After the pandemic, the costs of medicines and specific drugs went straight up. As much as business owners try, they are unable to bring the prices back to normal. Several taxes and various other duties are now added to the price of drugs. The customers then complain about expenses, but there is only so much the business owners can do about this.

Along with this, the owners have to pay credit card processing fees which reduces the percentage of profit they earn from their business. To fight all this surge in prices, cash discounts play a huge role and bring in profit.

  • Business Location

Honestly, everyone wants to open their business in the primary market. But when starting a business, owners do not have enough money to rent a place in the main market. Either they take a loan from the bank or start their business from a remote location. However, borrowing money from a bank is not the best plan of action because you can never be sure how long it will take to pay it back, and if you end up paying it back late, you’ll have to pay more in interest, which will reduce your profit.

So, location matters a lot. Main markets welcome a large percentage of people, and this gives you more exposure. However, as a startup, it is not practical to choose a high profile location.

Is the Cash Discount Program the Right Option for Medical Marijuana Dispensaries?

Before getting your hands on something, you need to do research to remain on the safe side. Your company will benefit from the cash discount program, and there will be no negative impact on retail sales as a result of this initiative. However, you will need to put in some work on your end if you want the program to be a success.

Apart from finding a trustworthy merchant provider, you need to have a good understanding of the program itself. You need to understand that you will have to count all the cash on your own. You will need security because the cash will always be in the drawer. But this problem can be dealt with by high-risk merchant accounts. These programs provide complete security and also train your staff.

So, despite all odds, the cash discount program is the right option for your marijuana and cannabis dispensaries. You can sell cannabis without putting your business at risk. There is no interchange fee, and you can make enough profit to expand your business. Generally, a 1.6%–3.6% fee is deducted when a transaction occurs. But with the cash discount program, you don’t need to worry about any fees.

How to Choose a Medical Cannabis Program/Cash Discount Program

Choosing the right program can be tricky, but not impossible. Once you get your hands on the right program, setting it up is as easy as ABC. Profits and customer numbers rise as a result of this program. The cash discount program is an easy way to revitalize your company.

The steps are as follows:

Guide to the Cash Discount Program for Dispensaries

  • Search for a trustworthy merchant processor who is a connoisseur in the field
  • Visit the franchise and discuss the details of the program with them
  • Ask them about the benefits of the program and check if it meets your needs
  • Sign up for the cash discount program and wait for the approval
  • Check all the equipment you need for your business and inform your merchant provider
  • Wait for the equipment to reach your business location
  • Allow the merchant representative to come and give a brief summary of the program to your employees
  • Start your journey with the cash discount program and accept payments without paying the transaction fee

Make sure to ask the merchant representative to teach your employees about the program. Also, double-check the equipment while the representative is still at your location.

What Do Dispensaries Need for a Cash Discount Program

It may come as a pleasant surprise to learn that the cash discount program is advantageous, simple to implement, and highly flexible. Like any other business, you must ensure that your operations adhere to all applicable federal and local laws, as well as credit card processing company guidelines. Other than that, all you need to do is set up your POS terminal to offer the cash discounts and hang the appropriate signs and posters in your dispensary to alert customers to the program.

Alternatives to Cash Discount Programs

If you’re trying to save money, you might consider looking into alternatives to the cash discount program. You’re in luck, then! Raising the prices at your dispensary is a good first step, but doing so runs the risk of upsetting current customers and discouraging potential new ones. In addition, you can look for a different service that offers lower processing fees and works within your budget.

Are Customer Reviews Important?

Yes. Customers play a massive role in the success of any program, and it is no different with this program. The customer reviews for the cash discount program say that the customers are content with the program and have no problem with it. Moreover, they are happy with the discounts they receive on paying with cash. So, this program is successful in the eyes of customers.

Final Words

The cash discount program is all you need to fight the increasing transaction fees. It benefits your business in several ways and allows your business to grow. It benefits not only the business owners but the customers too. So, both the sellers and buyers are happy with it.

That said, our post comes to an end. We hope this article answers all your queries about the cash discount program for dispensaries. Happy saving! We also have a card processing database if you want to learn more!