Cannabis E-Commerce Company Introduces Cashless Payment Option

Canna E-commerce platform, Dutchie, has announced plans for a cash-free payment options in an effort to give dispensaries and customers a new payment option besides cash.

The new payment system, dubbed Dutchie Pay, allows consumers to purchase their favorite cannabis products online for delivery using a closed-loop automatic clearing house (ACH) bank transfer.

“Cash creates too many safety risks and is inefficient. Our industry cannot meet its full potential without modern payment solutions available at scale,” Dutchie chief product officer and co-founder Zach Lipson said in a statement from the company. “Dutchie exists to create safe and easy access to cannabis. Dutchie Pay advances our mission by integrating a simple and secure product that makes cannabis purchases safer, easier, and more accessible for dispensaries and consumers alike.”

Federal banking has been off limits to legal cannabis operations due to cannabis remaining a Schedule 1 substance that is completely illegal on the federal level. For this reason, federal banks will refuse to do business with legal cannabis businesses in their state for fear of prosecution from the feds.

As a result, most dispensaries are forced to operate their businesses almost entirely in cash. With criminals aware of this issue, dispensary employees and their customers at an increased risk of serious crimes including theft, burglaries and violent robberies.

The Secure and Fair Enforcement (SAFE) Banking Act, which has been passed by the U.S. House of Representatives seven times, would prevent the federal government from prosecuting federal banks for working with legal cannabis businesses. However the bill has not been passed in the Senate yet.

In order to use Dutchie’s new payment system, a retailer must be using their POS system in their stores. Companies such as Dutchie and Weedmaps, traditionally known for their consumer side interactions, also provide Point of Sale services to retailers. This includes live updated menus, deals, business info and other features.

However for those using Dutchie’s POS, they no longer have to use multiple different softwares or platforms to operate their menus and take payments separately.

For consumers, Dutchie Pay is a one-click digital payment option for ordering cannabis products online and for delivery via a direct ACH bank transfer. Consumers will be able to connect their bank account and pay for their cannabis purchases directly at checkout.

Of course this is only an option at retailers who use the Dutchie system, which many consumers may not know when they are at checkout.