Merchant Services for Cannabis Dispensaries

Modern payment solutions for cannabis

Allegiance Service is a premier merchant services company specializing in providing compliant payment solutions to the cannabis industry.

Allegiance Service proudly offers a comprehensive suite of merchant services designed to meet all your financial and business needs. From modern payment processing and efficient payroll solutions to cutting-edge inventory management software and marketing intelligence tools, we’ve got you covered. Plus, our dedicated team is here to provide you with top-notch customer service and support every step of the way.

As cannabis industry veterans, we live and breathe the nuances cannabis merchants face. Committed to transparent, reliable service and delivering economical, compliant solutions. Let us roll out the red carpet for you!

High-Risk Payment Processing for Cannabis Businesses

With a wealth of experience in high-risk payment processing and a deep-rooted involvement in the cannabis industry dating back to the early 2000s, the founders of Allegiance Service understand that the cannabis industry is unique and dispensaries require tailored solutions, integrations, and support.

The cannabis industry needs reliable solutions to accept payments by card and process electronic or cashless transactions to mitigate risks in dealing with cash and increase revenue opportunities. Since our inception, we have helped hundreds of cannabis dispensaries legitimatize their business with merchant services and payment solutions, prioritizing compliance, stability, and revenue gains.



Apple Pay

Google Pay

Online Pay

Self-service kiosks for dispensaries

Compliant and Reliable Solutions for Your Business


A lot of cannabis dispensaries are still in the dark about what cannabis payment options are actually reliable and compliant or the revenue lift opportunity these solutions bring.

We understand cannabis operators are fatigued over a lack of transparency, shutdowns, and being approached with new solutions, having to buy new terminals and change their operations when solutions don’t survive.

We understand the frustration and hassle and are here to change that!

Allegiance Service is a breath of fresh air for cannabis retailers, delivery services, and consumption lounges. We provide a range of tailored solutions that are secure and compliant to meet your needs where you’re at.

We look forward to providing value and building meaningful connections to support your success and safeguard your business.

Navigating the Complexities of Cannabis Payment Processing


In the United States, Cannabis is still illegal due to it’s Schedule 1 status at the federal level, so traditional banks, financial institutions, and payment processors do not provide services to process for cannabis. Because of these limitations, dispensary payment processing is considered high-risk, and dispensaries have a select few options and hoops to jump through before getting approved for card processing.

Like any legitimate business, cannabis merchants need methods to securely accept payments from their customers. Allegiance Service merchant services and cannabis payment processing solutions are here to help bridge that gap.

Resources for New and Established Cannabis Business

Whether you are a new dispensary or have been around for a while, Allegiance Service specializes in cannabis business solutions for every stage from start to scale to get your business up and running, processing payments and improving revenue outcomes.

  • Tailored Payment Solutions for Cannabis
  • Dispensary retailers
  • Delivery services
  • Online marketplace
  • Consumption lounges
  • Medical clinics
  • Distributors
  • Cannabis-related services

Explore payment processing solutions built for cannabis. Whether you operate as a retailer, delivery service, consumption lounge, or medical clinic, we provide the best-in-class services to facilitate seamless transactions through our network of cannabis-friendly merchant accounts to protect and enhance your operations.

Choosing The Right Merchant Account or Agent to Facilitate Cannabis Payments

Cannabis dispensaries need to choose a trusted payment provider who will provide a merchant account or agent of record who can facilitate compliant cannabis-related transactions.

Cannabis transactions are highly regulated and have specific rules and compliance checks they must pass. Choosing the right processor is crucial for payment stability, compliance liabilities, and fraud and chargeback protection. It is important to choose an experienced cannabis payment provider who will facilitate a compliant merchant account and offer you payment redundancy to ensure you have more than one way to process in case of a disruption.

You Will Need A Cannabis-Friendly Bank Account

Cannabis businesses cannot legally operate with traditional banking and merchant accounts. The federal legal status of cannabis means many banking institutions will not take the risk involved in supporting services for cannabis businesses. Cannabis-related businesses must bank through an approved bank.

We have relationships with over 25 cannabis-friendly banks, offering economical and reliable service to the cannabis industry. We are happy to help you compare options to determine the best banking solution for you. Once we arrive at that decision, we will make a red-carpet introduction to the best person at that financial institution while acting as your VIP concierge throughout the process until approval is reached.

Most Popular Cannabis Payment Processing Solutions

Allegiance Service offers the best and most reliable payment processing solutions available to cannabis operators, checking the boxes on compliance standards, affordability, and functionality with compatible integrations for all types of point-of-sale systems.

There are a few payment options we have encountered that are risky, not compliant, and not sustainable. Cannabis businesses need to be careful who they choose to facilitate payments for their business. We are diligent when vetting solutions, bringing you our expertise with over 35 combined years in high-risk processing and 23+ years in the cannabis space.

Allegiance Service is committed to providing you with reliable and secure payment methods. We will only provide solutions that are compliant, secure and have transparent fees, with no long-term contracts or exclusives.
Give us a call to discuss payment methods that integrate seamlessly with your operations and point-of-sale systems. We are here to support your success.

Cannabis payment processing options

Whether you are a storefront, delivery service, consumption lounge, or medical marijuana clinic, we have options and customized solutions built for all types of businesses. Here are ways dispensaries can take cannabis payments.

  • Cash
  • ATM
  • Cashless ATM
  • PIN debit – Debit card payments
  • Credit Transactions – Accepting credit cards
  • ACH payments
  • Online payments
  • Electronic and Mobile payments
  • Gift cards
  • Tap to Pay – Contactless Payments

Give us a call, and we can help you find the right cannabis payment processing methods for your business.

What is PIN debit?

PIN debit processing is a debit card transaction where the customer uses a personal identification number (PIN) to authorize the purchases. When a customer purchases cannabis using a debit card, they enter their PIN to complete the transaction. The PIN serves as a security measure, verifying the identity of the cardholder and ensuring that the transaction is authorized by the rightful owner of the card. Allegiance Service offers the lowest PIN debit rates for cannabis businesses with integration options compatible with most point-of-sale (POS) systems.

What is Cashless ATM?

Cashless ATMs are point-of-sale devices or point-of-banking systems that allow customers to make card transactions when paying for cannabis. It works like an ATM where a customer requests an amount of money at the terminal and receives a receipt for their cashless ATM transaction without handling any cash. Then, the budtender deducts their purchase total, applicable tax, and cashless ATM fee from the balance and pays out the customer for the remainder of the change. This payment process is another way dispensaries can accept card payments indirectly. On the consumer’s bank statement, the charge will appear as a cash withdrawal from an ATM rather than the dispensary.

What are ACH Payments and How are They Used in Dispensaries?

ACH or bank transfers are among the most reliable and secure payment methods for cannabis dispensaries. The term ‘”ACH” stands for Automated Clearing House, a U.S. financial network governed by Nacha, National Automated Clearing House Association.

ACH transactions are highly regulated electronic payments with robust security infrastructure and fraud protections in place to safeguard the business and customers.

An ACH payment is an electronic transfer of funds from one bank to another without going through card networks or using wire transfers. ACH payments are processed in daily batches through the ACH network, and it typically takes two business days for the funds to become available to the receiver.

How Do Dispensaries Process Online Payments?

Do you want your customers to be able to place orders online for pick-up or delivery? This requires a cannabis e-commerce solution, and there are lots of options. You will want to choose the one that is most compatible with your POS and inventory management systems for seamless integration to streamline your operations. E-commerce software uses a payment gateway to channel payment transactions between your website and processor. Get in touch with us to discover e-commerce tech solutions for your dispensary.

Can Dispensaries Accept Google Pay and Apple Pay?

Modernized dispensary payment processing options like Apple Pay and Google Pay are becoming more popular. These options are major drivers for pot shop retailers to increase average order values while giving consumers more convenient payment options. The good news is we have solutions that allow you to offer Google Pay and Apple Pay to your customers! Get in touch with us and let us know if this is something you are looking for.

How Do Gift Cards Work?

Dispensaries are using gift card programs to accept credit card payments in a secure, close-loop way. Some gift card payments are processed for the exact total of the order, while others round to the nearest dollar. This payment method is a protected way for a dispensary to accept credit cards. We have a unique gift card purchase solution built just for cannabis.

Do You Have Credit Card Processing Options?

Many tactics like close-loop transactions and mobile app workarounds are taking place in dispensaries to offer their customers the ability to process credit cards. While some of these solutions are processed through a compliant route, others are blatantly fraudulent and illegal. Cannabis credit card processing has to operate in a unique and innovative manner. Not all credit card processing options are actually solutions; beware of bad actors.

You need to know the difference and what to look for before you sign up for just any credit card solution. We can provide you with the latest updates on credit card transactions at medical marijuana dispensaries.

Can Dispensaries Accept Cryptocurrency?

With cryptocurrency payments and the cannabis industry both on the rise, people have thought about every way to accept money for cannabis in a compliant and secure way, and Bitcoin has proven to be a stable option. There are even forms of cryptocurrency that were developed specifically for cannabis transacting. This is not a popular payment solution because it is a small minority who actually utilize this payment method, but you can do it.

Lots of Options and Lots of Change

Legal cannabis sales have evolved beyond cash payments, and dispensaries need reliable cannabis processing solutions for both security reasons and to provide better service to customers.

As long as cannabis is federally illegal, it will remain subject to complex regulatory challenges and limitations, hindering the industry’s ability to access traditional banking services and forcing reliance on alternative payment solutions.

As this industry evolves, expect more change. We recommend every dispensary owner protect their business with payment redundancy.

Vetting Cannabis Payment Methods

In all transparency, there are quite a few innovative cannabis payment processes that use workarounds and loopholes to give dispensaries the ability to accept credit cards. While these solutions are attractive and present the opportunity for dispensaries to increase revenue, they are vulnerable and may be shut down at any time.

In some of these payment options, the processor takes on the risk through their merchant account or as a third party agent so the cannabis business can process. Some of these solutions could abruptly shut down at any time if the banks, card brands or financial institutions find the solution to be non-compliant for their standards.

Some solutions pose a risk to the cannabis business, as their money could get tied up in funding delays if a disruption happens between the bank and the processor. Although there is some risk, a lot of cannabis businesses utilize these payment services.

If you want to accept credit cards, there are a few ways to do it safely, and we get asked about them often. The most important thing we tell dispensaries who want to go this route is to have payment redundancy in place and to ensure that the processor holds the liability as the merchant or agent on record.

Frequently Asked Questions

These FAQs are here to give you a comprehensive understanding of the complexities and considerations involved in cannabis banking and payment processing.

How Does Cannabis Payment Processing Differ from Traditional Payment Processing?

Cannabis payment processing in the U.S. differs from traditional payment processing due to the unique federal and state laws that govern the industry. Unlike traditional businesses, cannabis is still federally illegal, so dispensaries have limited access to banking options and typically have to use alternative payment solutions to accept credit cards and debit payments. As a result, cannabis companies have to navigate complex compliance requirements and use payment methods tailored to their specific needs.

What Factors Should Cannabis Businesses Consider When Choosing a Payment Processor?

Contracts and Cancelation policy – No long-term contracts and easy cancelation with no charge to you.
No exclusives – Your business can utilize other payment systems freely.
Transparency – Rates and service fees should be straightforward and easy to understand.
Compliance – How does the solution work, and what makes it compliant?
Anti-money laundering measures – The solution should not use false descriptors.
Experience – How long has the processor been involved in cannabis payments?
Customer service – Reliable customer support in case of an outage or issue.

Other factors that great payment providers offer are alternative payment solutions for payment redundancy to mitigate loss if a disruption occurs. Additionally, evaluating the processor’s experience in the cannabis sector and their ability to provide reliable customer support are crucial considerations for businesses in this industry.

What is a Cannabis Merchant Account?

A cannabis merchant account is like an intermediary bank account that is set up by the processor and has a 15-digit identification number attached to it. It is used to facilitate credit, debit payments, or other electronic payment methods from customers. It’s where the money from these transactions goes before it’s transferred to the business’s regular bank account.

What is a Cannabis Payment Processor?

A cannabis payment processor is a financial institution that facilitates payment options for cannabis sales through various channels, such as debit payments, bank transfers, and credit card processing.

Cannabis payment processors act as a kind of mediator between the bank and the merchant. They provide secure payment systems for card payments.

How Does Payment Processing Work In Self-Serve Kiosks?

Allegiance Service provides payment processing solutions that are compatible with Samsung Kiosk to accommodate a wide range of retail and cannabis dispensary merchants. Contact us to ask about Self-Service Kiosks and payment processing options for your business.

Where Can I Get a Cannabis-Friendly Bank Account?

There are many cannabis-friendly banking solutions available by state, and some are equipped to support multi-state dispensary chains. Let us know if you need a recommendation for an affordable and secure bank account for your cannabis business.

What Documentation Is Required to Open a Cannabis Business Bank Account?

Just about every financial institution will ask for these documents to get you approved for a cannabis-related bank account:

  • Identification ID Passport
  • Capitalization Table
  • Certification of EIN/TIN or Tax Return
  • Operating Agreement or Company Bylaws
  • Previous Processing Statements
  • Cannabis Licenses
  • Certificate of Insurance
  • Secretary of State Filing or Certificate of Good Standing
  • Property Title or Lease
  • Master Services Agreement

How Can Cannabis Businesses Mitigate Risks Associated with Cash Transactions?

Cannabis businesses can mitigate risks associated with cash transactions by implementing a variety of alternative payment solutions. Transitioning to online checkout systems allows customers to make purchases electronically, reducing the need for cash handling. Utilizing cashless ATM services enables patrons to access funds electronically while providing a seamless transaction experience. Implementing PIN debit options offers a secure method for customers to authorize purchases directly from their bank accounts.

Additionally, offering credit card options and gift card purchases provides alternative ways customers can pay that also help boost dispensary sales. These options reduce reliance on cash and enhance overall safety and security for cannabis businesses.

Why do Cannabis Payment Solutions Have High Transaction Fees?

A cannabis-related business is not allowed to use a traditional merchant account. Cannabis dispensaries that want to accept cards need a high-risk payment processor that has solutions tailored to the industry that follow compliance guidelines. Because these transactions are high-risk, merchants and customers have to pay a higher processing fee.

What Are Some Strategies for Dispensaries to Keep Transaction Fees Low?

There are numerous solutions that are customizable, giving the dispensary the option to share processing fees with their customers to entice more card sales, or they can pass fees on to the customer to keep their monthly fees minimal. Ask us about low-cost solutions that benefit you and your customers.

What Factors Should Cannabis Businesses Consider When Choosing a Payment Processor?

When vetting a cannabis payment solution, a dispensary should look for these key factors:

  • The payment processors’ experience in the cannabis industry
  • What makes their solution safe and compliant
  • Fraud and chargeback protection
  • Competitive rates and low fees
  • No long-term contracts
  • Flexible cancelation policy and no fees
  • Equipment cost, terminals, card readers, etc.
  • POS software Integrations
  • Reporting Dashboard
  • Funding timeline
  • Customer service

Do Cannabis Payment Processing Companies Have Fraud and Chargeback Protection?

Yes, chargeback protection and fraud prevention are critical for cannabis companies to securely process debit card payments and credit card payments. Allegiance Service Cannabis payment processing solutions have robust fraud and 100% chargeback protection. We have the lowest chargeback rates in the industry – find out why!

What is the SAFE Banking Act?

The SAFE Banking Act, officially H.R.2891 as of 2023-2024, stands for Secure and Fair Enforcement (SAFE) Act. This bill was proposed to provide protections for financial institutions and payment processors that provide financial services to State-sanctioned marijuana businesses.

Due to the federal classification of marijuana as a Schedule I controlled substance, legal businesses are treated unfairly and not have access to traditional financial services that other businesses do.

The bill aims to grant the cannabis industry banking access, alleviating concerns over penalties and high fees. It advocates for financial institutions and regulations to ensure equitable treatment for cannabis businesses. This bill would further protect businesses by mitigating safety risks associated with cash payments, increasing access to capital, providing equal access to credit card processing, and it would stimulate growth in the industry by building jobs.

What Makes a Cannabis Payment Method Compliant?

A card-based payment method needs to be facilitated through a cannabis-friendly merchant account. The payment processor must route payments that a process that passes compliance checks for banks and card brands. There are a few ways that payment processors can facilitate compliant cannabis payments as an intermediary or go-between by becoming the merchant or agent of record.

There are a few different ways these process are set up, for example some solutions have the transaction routed through a gift card purchase or an e-wallet. Cannabis processors need to maintain close partnerships with banks and legal experts and regularly update their systems to reflect changes in legislation, ensuring that their services align with evolving regulatory frameworks at both the state and federal levels.

What Happens If My Payment Processing Gets Shut Down?

Cannabis payments are shaky and we have witnessed many solutions come and go. One of the things that our clients love about choosing Allegiance Service as their payment provider is because of our secure business documentation system, which allows us to reach out to you right away and get you approved for other solutions if a service disruption occurs.

What Other Merchant Services Does Allegiance Service Provide?

Allegiance Service is more than just payment processing, but a merchant services company that can help you with banking, payroll, accounting, HR, insurance, marketing, software tech and more.

Have Questions? Book a Call with Allegiance Service

Allegiance Service is here to bring you the gold standard of cannabis merchant service solutions. What sets us apart from other payment providers is our commitment to serve, protect and support the success of entrepreneurs in the cannabis community.

(800) 301-5538
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