Cashless Cannabis Payment Options
Cannabis Cash Handling Costs
Cash handling costs that are associated with cannabis dispensaries involve security, cash counting automation, and cash access elements. After analyzing these elements and the price they entail, we concluded that the cash handling expense is related to the number and quality of features that the business wants to invest in. It is clear, however, that if a dispensary puts money on security elements, it will be at less criminal risk, which is one of the main factors contributing to cash handling costs.
Security, Cash Access, and Counting Automation Solutions
- According to Flowhub, a company that provides cannabis business operations services, cash-only payments may present "a logistical and security challenge." The collection of cash at the point of sale is susceptible to mistakes and imprecision as humans count and process thousands of dollars in cash on a daily basis. For this reason, managers have to analyze all transactions at the end of every day to detect any discrepancies.
- To help reduce errors and speed up cash transactions, cannabis dispensaries often use automated money counting and counterfeit bill detection solutions.
- Cash increases security concerns and costs to transport it as "every cannabis retail operation in the state must transport their tax payments in cash to a secure site." Some businesses hire an armored car to deliver the money, while others transport it in boxes in the back of their personal vehicles. Drivers might have to carry around "thousands of dollars in cash on a daily basis," putting them and the dispensary's revenue at risk.
- Many cannabis dispensaries have an ATM in-store to ensure customers have access to cash. However, ATMs come with significant fees.
- In addition, dispensaries need "large and costly vaults" to secure their money.
- Some cannabis businesses invest in additional security measures for their establishment, such as security doors, locks, security cameras, and even man traps.
Security Transportation and Vaults
- As per Marijuana Business Daily, companies such as Loomis and Tidel "offer smart safes starting around $8,500 for a basic version and priced as high as $35,000-$45,000."
- Armored services that transport cash "charge a fee of 3% to 6% of the amount of cash being moved."
- Key-card access doors cost $1,500, at least.
- Monitored camera services have an estimated minimum price of "50 cents per camera per hour."
- Access control systems have an average of $3,350.
- Mantrap control systems can cost between $30,000 and $60,000.
- Standard ATM machines are priced $1,150 up to $27,000. Leasing or renting an ATM costs around $50 to $120 per month.
- Additional to the ATM, owners need a phone line connection that costs $25 to $35 per month, cash replenishing services that cost between $45 and $65 per refill, and cash cassettes ($200 each).
Counterfeit Bill Detection, and Money Counting Solutions
- Currency counting solutions price is estimated to be between $110 to $2500. This estimate includes counterfeit detection and money counting solutions.