December 5, 2022

Cashless ATM alternatives for cannabis dispensaries

Lindsay Crafford
December 5, 2022

If you’re like most cannabis dispensary operators in the United States, you were likely surprised by recent breaking news that Cashless ATM services (also known as “point of banking”) may not be sustainable for the industry—and does not live up to Dutchie’s high standards for service.

Across the U.S., both smaller dispensaries and multi-state operators are experiencing service disruptions, with businesses recommending their customers use cash, or other alternatives, while they figure out a path forward. 

The end of cashless ATM for cannabis: what's next for retailers?

We anticipate these disruptions to continue and become further widespread, despite reports that some Cashless ATM systems are still operating. However, accepting debit cards is a crucial competitive advantage in the cannabis industry; cashless payments allow your customers to escape the cash trap, while also boosting your sales volume and reducing the inefficiencies and risks associated with operating in all-cash.

What are the most secure forms of payment for dispensaries?

It’s critical that your payments processing partner is staying up-to-date on the latest payments requirements and regulations in cannabis. Dutchie is committed to supporting our customers with two cannabis payment processing solutions that enable dispensaries to accept cashless payments while also increasing sales revenue and boosting customer retention. 

The most secure forms of payment for dispensaries s are PIN debit and ACH payments. Let’s explore both of these a bit more in-depth.

1. PIN debit

A Personal Identification Number (PIN) debit transaction is an electronic funds transfer from a customer’s bank account to the dispensary’s bank account. PIN debit transactions are initiated when a customer inserts their debit card into a card reader and then enters a four digit PIN to verify authorization of the sale.

Are PIN debit transactions safe?

Yes! PIN debit transactions are extremely popular in traditional retail environments (think gas stations, clothing stores, grocery stores, etc.) and considered one of the most secure forms of card payment. This is because:

  • The customer’s card is presented at the terminal
  • A PIN is required to validate the purchase
  • The funds are immediately removed from the customer’s bank account

Dutchie’s fully-integrated PIN debit solution allows dispensaries to accept in-store debit card purchases from customers. Unlike Cashless ATM, PIN debit transactions are for exact dollar amounts, which means no rounding up. Reduced reliance on cash means less likelihood of costly human error—and eliminates the potential for customer confusion during the checkout process.

Ready to learn more about Dutchie’s integrated PIN debit solution? Contact us today and we’ll get you up and running in no time!

2. ACH payments

Another popular and safe cannabis payment option is to facilitate transfers through ACH (Automated Clearing House). 

This digital payment process refers to the process of transferring money between banks without checks, wire transfers, or cards.

Dispensaries can enable ACH payments today with Dutchie Pay, our fully-integrated digital payment solution. Dutchie Pay is available both online and in-store, enabling you to provide your customers with the same familiar mobile checkout experience they’re accustomed to in traditional retail environments. Shoppers can also choose how they pay—with curbside and delivery options included.

How does Dutchie Pay work? 

Once a consumer has added their favorite products to their cart on a chosen dispensary’s website, they’ll select Dutchie Pay as their payment option. They will next be prompted to sign up with a few pieces of information and securely connect a bank account. The consumer can then complete the purchase (and any future purchases) with a single click.

The process in-store is just as easy: the consumer scans a QR code, which connects them to the POS. Then, they'll review the order on their phone and complete payment in a single tap!

Did you know that dispensaries that implement Dutchie Pay have seen faster checkouts, bigger order sizes, more productive staff, and improved customer retention? It’s true! Not only can Dutchie Pay drive a 19% increase in average order value (AOV), 70% of shoppers who purchase their cannabis products using Dutchie Pay return to that dispensary within 90 days. 

Ready to future-proof your dispensary with digital payments from Dutchie Pay? Contact us now to learn more.

The bottom line

As industry-wide instability persists, you’ll likely hear potentially unsubstantiated claims from payment providers regarding alternative payment products. We encourage you to carefully research dispensary technology providers, as selecting a cannabis payments partner is a critical business decision that can impact your operations for years to come. 

Dutchie is here to support you with our industry-leading POS, Ecommerce, and Payments solutions. Our integrated PIN debit solution, in conjunction with Dutchie Pay's successful launch of in-store payments, allows us to streamline your business operations with payment solutions you need—and your customers love.

Ready to grow together? Contact us today to get started.

About the author
Lindsay Crafford
Sr. Content Marketing Manager