Benefits of TreezPay Payment Processing Solutions Over Cash
If your dispensary only uses cash or is using only one limiting payment processing solution today, you have a big opportunity to reduce the number of headaches for your staff, make more money, and create a better customer experience with TreezPay solutions. This article will outline the major disadvantages of being a cash-only operation, and will also walk you through the competitive advantages that you’ll get by using TreezPay solutions in your dispensary.
Remember - even if you’re not using SellTreez point-of-sale today, you can still take advantage of TreezPay solutions alongside your current point-of-sale system.
Let’s get into it!
The downsides to being a cash-only dispensary operation
Increased liability and risk
Cash-only dispensaries are more at risk for robberies, especially if the cash is kept on-site. MJBiz Daily estimates that 10% of the loss for dispensaries is attributed to external theft. Other than material risk, only operating on cash and keeping it on-site also puts the lives of your staff at risk if your business gets robbed.
There are significant costs associated with handling cash. According to the IHL Group, the overhead cost of handling cash can range between 4.7% and 15%. The overhead costs for dispensary operations are likely on the higher end of this spectrum because these are primarily cash businesses. Overhead costs can include security personnel, transportation costs, increased security if cash is stored on-site, deposit costs, and labor hours associated with processes and procedures of cash handling day-to-day.
If you're a cash-only dispensary, your customer is limited by the cash they have on hand or the amount of money they choose to pull from an ATM withdrawal. Dispensary customers are a lot less likely to be upsold past their initially set spending limit because of the extra work required to get more cash.
Increased internal theft
According to MJBiz Daily, 90% of financial and product loss in the cannabis industry is due to employee theft. Of course, internal theft is somewhat unavoidable; however, you can reduce the amount of theft by diversifying your revenue intake by offering cashless payment options as well as cash transactions.
Data from Fundera reveals that 80% of Americans prefer to pay for goods with debit or credit cards, and only 14% prefer to pay with cash. Additionally, only 16% of Americans always carry cash with them.
The benefits of cashless payment processing
- Reduced liability and risk
Keeping less cash on-site minimizes the risk of your dispensary being the target of a robbery and reduces the opportunity for internal theft. Less cash also means fewer headaches for your accounting team downstream. TreezPay solutions can reduce your cash on-site by up to 30%.
- More opportunities to upsell and increase revenue
If your customers are only limited by the cash in their bank account and not their wallet, they are likely to spend more of it. That allows your budtenders to build rapport with your customers and suggest more products that will fit their needs. The average dispensary sees a 26% increase in monthly revenue after implementing TreezPay solutions.
- More convenience and positive customer experiences
With TreezPay solutions your customers have the option of ordering their products and paying online, modernizing their cannabis buying experience. In-store transactions facilitated by TreezPay are speedier, and your customers can get all the products they want without being limited by the cash in their wallets. Transactions utilizing TreezPay solutions reduce your average ticket times by up to 15%.
How to get started with TreezPay
TreezPay offers three payment processing options that you can use in parallel in your dispensary for maximum convenience and benefits.
TreezPay PIN Debit allows your dispensary to process debit card transactions. See a demo of an integrated TreezPay PIN debit transaction below.
TreezPay ACH payments allow your customers to securely link their bank account to pay for their delivery or pickup order online. See a quick demo of an integrated TreezPay ACH demo below.
To start the process of implementing Treez Pay solutions in your dispensary - contact us for a no-obligation demo, including a free customized quote and an estimate for the return on investment you’ll get after implementing TreezPay.