Merchant Processing Options for Cannabis Dispensaries: Your 2025 Guide

Explore top cannabis dispensary merchant processing options for 2025. From cashless ATM to Pin Debit and actual Credit Card Processing, find secure, compliant payment solutions today.

Navigating Cannabis Payment Processing in 2025

Payment processing for cannabis companies has certainly been a roller coaster over the past decade. From the cashless ATM crackdown a few years back to last year’s pin debit disruptions, one thing is clear: no system is foolproof. Government regulations, bank policies and tech glitches can interrupt even the best setups.

As we step into 2025, let’s break down the merchant processing options for cannabis dispensaries, labs, manufacturers and other industry players. Whether you’re seeking reliability or cost savings, this guide has you covered.

Cashless ATM Cannabis Payment Processing

How It Works: Cashless ATM systems have long been a go-to for cannabis dispensary merchant processing. Customers use their debit card for a withdrawal, followed by an instant cash purchase—mimicking an ATM transaction.

While it is certainly a suitable way to process a cannabis merchant payment, it does also come with an uncomfortable moment. Since it is not an exact to the penny transaction due to the ATM fee, customers and retailers have to decide if that fee is a tip, or is change for the transaction.

Not a huge issue, but something to consider if your cannabis dispensary is considering this type of payment solution.

Pros:

Widely available and familiar to merchants.
Simple to implement at the point of sale.

Cons:

Includes an ATM fee, creating an “awkward moment” where retailers and customers must decide if it’s a tip or requires change.
Vulnerable to regulatory scrutiny.

Best For: Dispensaries prioritizing ease over precision.

Pin Debit Cannabis Payment Processing

How it Works: If you are as old as I am you may remember a time when you had to swipe or insert your debit card and then input a four digit pin number to complete the transaction. Although still in existence, it is less used today in retail commerce.

However, for the cannabis industry it offers a few advantages over cashless ATM. The main being, it is exact to the penny. Forget the awkward moment we talked about above. The charged amount matches the payment due. No muss, no fuss.

It is also a bit more compliant since it is the type of transaction the process was used for specifically, unlike the cashless ATM instant withdrawal and subsequent purchase.

Pros:

Exact-to-the-penny charges-no awkward fee discussions.
More compliant than cashless ATM since it aligns with its intended use.

Cons:

Less common in modern retail.
Still subject to bank and network restrictions.

Best For: Dispensaries seeking cannabis payment solutions with precision and compliance.

Credit Card Cannabis Payment Processing

Yes, it does exist! But how? you say, isn’t that illegal?

The truth is none of these systems are supposed to be used to process cannabis dispensary payments. However, it is really the credit card companies or the banks that cause the biggest issues.

Credit companies don’t want these transactions to move on their ‘rails’. And the acquiring banks may not allow these categories to be transacted using their systems.

The truth, however, is that credit card processing does exist. Although more rare, there are providers that have developed technological workarounds and acquiring banks that are working with them.

How it Works: Despite restrictions, some providers use technological workarounds and cannabis-friendly acquiring banks to make it happen.

Pros:

Appeals to customers who prefer credit over debit or cash.
Boosts sales with higher transaction limits.

Cons:

Rare and harder to find providers.
Credit card companies and banks may shut it down unexpectedly.

Best For: Dispensaries willing to cash in on the higher average sales while building in redundancy for potential interruptions.

ACH Processing for Online Transactions

How it Works: A new player in 2025, ACH processing enables online payments for dispensaries (and delivery companies). Customers link their bank accounts, allowing seamless e-commerce transactions.

Whereas before dispensaries could take orders, but no process a transaction online. This new offering may now bridge the gap.

Pros:

Bridges the gap for onlines sales, previously an unusable domain.
Cost-effective compared to card-based systems.

Cons:

Requires customer trust in bank-linked payments.
Early adoption means fewer providers offer it.

Best For: Dispensaries expanding into online sales or delivery.

Limiting Disruptions in Your Cannabis Payment Processing

No system is immune from disruption – whether it’s a government crackdown, an acquiring bank existing the space or a technology failure. To minimize downtime:

Whether it be a government crackdown, an acquiring bank leaving the space, a consumer complaint or a technology glitch the chance of a payment processing glitch is never zero.

Run Concurrent Systems: Partner with two providers. Use one as a backup or split them by register, location or in-store versus delivery.

This way if there is a disruption you can transition to the other system while you troubleshoot and fix the problem. Downtime is a major issue in this industry and will cost you infinitely more than the extra cost of the second cannabis payment provider.

Ensure Your Processor is Using U.S. Based Banks: Foreign banks may dodge U.S. laws but could vanish with your funds.
Monitor Performance: Regularly assess uptime and customer feedback.

Downtime costs more than a second provider’s fees. Stay proactive to protect your revenue.

How Can We Save Money on Cannabis Merchant Processing?

Cost is a big factor in choosing cannabis payment processing solutions, here are some tips to cut expenses:

Cash Discounts: Pass some or all of the processing fees to customers at the moment of the transaction.
Volume Discounts: As your dispensary grows, negotiate lower rates based on monthly processing totals.
Equipment Deals: Some providers waive upfront costs if you commit to a term or volume.

Review your options with your current provider annually to ensure you’re getting the best deal. Jumping from one vendor to the next could result in downtime and lost revenue. If your cannabis payment processor is consistent and stable, resist the urge to jump from one to the other.

What to Ask Cannabis Payment Processing Providers

Every payment processor is a little bit different. Before signing up, dig into the details.

Contracts: Are you locked in, or is it month-to-month?
Processing Options: Do they support in-store, delivery and online sales? Credit, debit, cashless ATM and/or ACH?
Technology: Is the hardware reliable for on and off-premise transactions? For off premise processing do they use mobile devices, apps or web portals?
Service Levels: How responsive is their support team? Do they offer 24/7/365 support? How well do you mesh with your point of contact?

Pricing may be similar across cannabis payment processing companies, but service, flexibility and technology set them apart.

Ready to Optimize Your Cannabis Payment Processing?

Choosing the right merchant processing options for your cannabis dispensary doesn’t have to be overwhelming. We partner with vetted, trusted providers to match you with solutions tailored to your business.

Merchant Processing Options for Cannabis Dispensaries: Your 2025 Guide