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This payment solution is quickly becoming an advantage for marijuana vendors in California

May 22, 2018

Merchant Club of America is providing the competitive advantage for cannabis vendors in California


Cannabis retail market is a lucrative business. On January 1, 2018, California became the largest legal recreational cannabis market in the world, which attracts many new marijuana vendors to the state. According to BDS Analytics, legal cannabis sales volume in California is projected “to reach $3.7 billion in 2018”1, and by the year 2021 California’s demand for legal cannabis “will be three times greater than any other state”(1).


The fast market growth is welcomed, however opening a cannabis business in California is a complicated process. Even though medicinal cannabis was legal for around 20 years, recreational cannabis market is fairly new, hence state-specific laws and regulations change on a regular basis. New and existing California cannabis vendors have their hands full with trying to understand and meet new state emergency regulations like the annual licensing process and annual licensing fees that can range from $800 to $120,000 a year.(2)


In addition, growing market puts pressure on California’s marijuana vendors to find ways of solving industry-wide regulatory limitations on accepting credit cards for the sale of legal marijuana products. Increasing sales volume means more cash transactions which in turn cause more headache for marijuana vendors due to safety, reporting, and reconciliation.



Dealing with all cash transactions makes California’s cannabis vendors a target for robberies and other crimes.  No wonder, many of California’s marijuana vendors are swiftly switching from cash transactions to Pin-Based Debit processing. Merchant Club of America provides Pin-Based Debit payment solution that offers the following advantages for California’s marijuana vendors:


  • Zero ATM fees

  • Payments accepted via swipe, manual key entry, Apple Pay and NFC mobile payment options.

  • Features individual MID tracking from each geographical location, which means less reconciliation work for the accounting department.

  • Safe processing due to limited fraud attempts and chargebacks.


Fill out the form below and find out how Pin-Based Debit payment solution can help alleviate some of your cash transaction issues.


Blog created and managed by DS&P


1.“California’s Race to the Pot of Green Gold” by BDS Analytics, posted in bdsanalytics.com. Published 4/5/2018, accessed on 5/21/2018

2. “State Gives Marijuana Businesses More Time to Get Licensed, Comply with New Regulations” by Brooke Edwards Staggs, posted in thecanniforniana.com. Published 4/30/18, accessed on 5/21/2018

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