Last week, the Washington State Liquor and Cannabis Board and Washington State Department of Financial Institutions published a list of cashless phone apps and transfer services that cannabis retailers can use for customer payments, in lieu of cash. The list also included banks and credit unions that would provide services to pot shops.
Because pot is federally illegal, cannabis retailers usually cannot take credit or debit cards. This reliance on cash alone has made them a target for armed robberies, which have spiked this year — including a robbery in Tacoma that saw an employee murdered.
However, not all cannabis retailers were optimistic about the cashless apps.
‘High’ frequency in armed robberies at pot shops in Puget Sound region
Kevin Heiderich, co-owner of House of Cannabis in Tacoma, Twisp, and Tonasket, appreciates the state’s effort to try to help curb robberies, but he does not believe this list of money transfer services will make much of a difference.
“The way these companies conduct business with their favorite cannabis store is pretty expensive for the cannabis store,” Heiderich said.
What people may not realize, he said, is that each of these apps charges significant fees per transaction. A 4% fee may not seem like much, but a business’ profit margin might only be 8%.
“If they’re coming in to buy $4 joints on 4-20, that’s a problem,” said House of Cannabis co-owner Mike McDonald.
Heiderich said if you add that fee onto expenses like…
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Last week, the Washington State Liquor and Cannabis Board and Washington State Department of Financial Institutions published a list of cashless phone apps and transfer services that cannabis retailers can use for customer payments, in lieu of cash. The list also included banks and credit unions that would provide services to pot shops.
Because pot is federally illegal, cannabis retailers usually cannot take credit or debit cards. This reliance on cash alone has made them a target for armed robberies, which have spiked this year — including a robbery in Tacoma that saw an employee murdered.
However, not all cannabis retailers were optimistic about the cashless apps.
‘High’ frequency in armed robberies at pot shops in Puget Sound region
Kevin Heiderich, co-owner of House of Cannabis in Tacoma, Twisp, and Tonasket, appreciates the state’s effort to try to help curb robberies, but he does not believe this list of money transfer services will make much of a difference.
“The way these companies conduct business with their favorite cannabis store is pretty expensive for the cannabis store,” Heiderich said.
What people may not realize, he said, is that each of these apps charges significant fees per transaction. A 4% fee may not seem like much, but a business’ profit margin might only be 8%.
“If they’re coming in to buy $4 joints on 4-20, that’s a problem,” said House of Cannabis co-owner Mike McDonald.
Heiderich said if you add that fee onto expenses like…
