December 13, 2022

ACH Payments for Cannabis: What Retailers Need to Know

December 13, 2022

If you run a dispensary in the United States, you may have encountered the terms ACH and digital payments.Β 


In this article, we'll show you how you can offer cashless payments via the Automated Clearing House (ACH) network. We'll discuss:


  • What are ACH payments?
  • How do ACH payments work?
  • Are ACH payments for cannabis safe?
  • Processing times for ACH payments
  • What are the benefits of ACH payments for dispensaries?

Let's dive in.

What are ACH payments?

An ACH payment is a type of electronic bank-to-bank payment. The term '"ACH" stands for Automated Clearing House, a U.S. financial network that enables the transfer of money between bank accounts, rather than going through card networks or using wire transfers, paper checks, or cash. The ACH network is governed by Nacha (National Automated Clearing House Association), which regulates payments as they're processed in daily batches through the ACH network.


According to Nacha’s recent research, there was significant growth in ACH payments and transfers in 2021, with 29.1 billion payments made, valued at a whopping $72.6 trillion.

Are ACH payments for cannabis safe?

Yes. In fact, ACH payments are the most secure form of payment for cannabis dispensaries. The ACH network is highly regulated, meaning there are fraud protections and security infrastructure in place to protect both customers and businesses from any vulnerabilities.


Benefits of ACH payments for dispensaries

Providing your customers with a modern retail experience is a crucial competitive advantage in the cannabis industry. Leveraging payment solutions that allow customers and dispensaries to escape the cash trap helps improve sales volume while reducing the risks associated with operating an all-cash business.


According to Nacha’s recent research, there was significant growth in ACH payments and transfers in 2021, with 29.1 billion payments made, and valued at a whopping $72.6 trillion. As a retailer, ACH transfers streamline your operations and make cannabis payment processing more efficient because everything is digitized.


Here are just three benefits of implementing digital payments at your dispensary:

1.Β Improved security

Some cannabis dispensaries have been the targets of a wave of robberies in recent months, inspiring a national call to reform the federal banking rules that make it difficult for dispensaries to accept virtual payments. Implementing a cashless payment solution will help ensure your state-legal, legitimate business operates like any other type of business.

2. Boosted revenue

One of the consequent results of this transition is an average increase in basket size per customer. Dispensaries that enable cashless payments with Dutchie see an average increase of 20% in order value, leading to increased sales volume and revenue.


Upselling and cross-selling techniques are much easier to implement in a cashless environmentβ€”customers are far more likely to buy into upsells when they don’t have to physically remove cash from their wallets to do so. This drives ROI (Return on Investment) and ultimately increases the overall profitability of your dispensary.

3. Reduced customer wait times

Cashless payments also decrease waiting times for customers. In the broader retail industry, the transition to cashless payment alternatives correlates with up to a 15% increase in the number of transactions processed per hour.Β 

Ready to future-proof your dispensary with cashless payments?

Dutchie Pay is a fully-integrated digital payment solution that both dispensaries and consumers can trust for secure cashless payments. Using a closed-loop automatic clearing house (ACH) solution, Dutchie Pay allows consumers to purchase their favorite cannabis products while automating compliance so that dispensaries can focus on growing their business.


Oh, and did we mention that over 70% of shoppers who use Dutchie Pay at a dispensary return to that dispensary within 90 days?


Let's grow together. Contact us today to learn more.

About the author
The Dutchie Squad