Credit card practices hurt a pot business

The oversupply of marijuana has led to concerns of mass closures of producers and retailers struggling to make a profit because of falling prices. But it is not just an oversaturated market that has created a difficult environment for Oregon’s pot businesses.

Practices in the financial services sector, which is wary of doing business with cannabis companies, are taking a toll on start-up pot businesses.

Renee Spears, the former owner of now defunct Smuggle, an online retailer of cannabis-related products, said excessive credit card processing fees were one of the biggest problem she faced.

Spears, the former owner of mortgage banker Rose City Mortgage, said she had difficulty finding a credit card processing company that would work with her retailer of high-end cannabis accessories.

When she found a credit card processing company willing to do business, the firm charged a 5-6% rate on transactions.

“The fees were so high, it ate into profit,” said

... read more at: https://www.oregonbusiness.com/article/cannabis/item/18273-shady-credit-card-practices-hurt-pot-businesses

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