December 9, 2022

What is Dutchie Pay? Your Questions, Answered

Lindsay Crafford
December 9, 2022

If you’re a dispensary owner who’s found yourself in the market for a new payment solution recently, you’re not alone. Operators across the United States are scrambling to figure out a path forward after experiencing industry-wide outages with cashless ATM products.


Luckily, Dutchie is prepared with a 100% digital (and compliant) way to offer secure cashless payments at your dispensary: Dutchie Pay. In this article, we’ll discuss:


  • What is Dutchie Pay?
  • What are ACH payments?
  • How does Dutchie Pay work?
  • Is Dutchie Pay safe?
  • What are the benefits of offering digital payments at my dispensary?
  • Does Dutchie Pay charge consumers a fee?

What is Dutchie Pay?

Dutchie Pay is a safe, easy, and cash-free way to pay for cannabis products. An ACH-based solution, Dutchie Pay offers secure payments for dispensaries and enables customers to easily make purchases both online and in-store.

What are ACH payments?

The term ACH stands for Automated Clearing Houseβ€”a U.S. financial network that enables payments to be transferred between bank accounts. 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, 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.

How does Dutchie Pay work?

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


The process in-store is just as easy: the consumer scans a QR code, which connects them to their cannabis point of sale. Then, they'll review the order on their phone and complete payment in one click.

Is Dutchie Pay safe?

Yes. Dutchie Pay is governed by the highly-regulated ACH network, which has fraud protections and security infrastructure in place to protect both customers and businesses from any vulnerabilities.

Does Dutchie Pay charge consumers a fee?

No, there is no cost to the consumer to use Dutchie Pay. And unlike cashless ATM, there’s no fumbling with cash or having to round up to the nearest $5 or $10 increment.

Why should I offer digital payments at my dispensary?

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.


Here are just a few benefits of offering digital payments at your dispensary:

1. Better security

Many 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 have traditionally made it difficult for dispensaries to accept digital payments. Implementing a cashless payment solution will help ensure your state-legal, legitimate business operates like any other type of business.

2. Increased revenue

Transitioning to cashless payments can also lead to an increase in average basket size per customer. Dispensaries that enable cashless transactions with Dutchie see an average increase of 20% in order value, resulting in increased sales volume and overall revenue.


Pro tip: Upselling and cross-selling techniques are also much easier to implement in a cashless environment. 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 profitability of your dispensary.

3. Reduced customer wait times

Cashless solutions 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. This, in turn, helps budtenders cater to more customers throughout the day.

The bottom line

With momentum building around the normalization of cannabis banking and payments, dispensaries should consider a pro-banking path. If you’re ready to future-proof your dispensary with Dutchie Pay, contact us today to learn more.

About Dutchie

Dutchie is the leading technology partner for cannabis retailers of all sizes. With a range of solutions covering point of sale, payments, ecommerce, insurance, and more, Dutchie empowers dispensaries to run efficiently, scale their operation easily, stay compliant, and offer outstanding experiences to the customers who rely on them.

About the author
Lindsay Crafford
Sr. Content Marketing Manager, Dutchie