Dfin is a new cannabis payment processing workaround that touted their closed-loop virtual gift card system, a solution that allows dispensaries to accept card payments. Virtual pre-paid gift cards are sold to customers using any network consumer debit or credit cards in the exact purchase amount and immediately redeemed at the point of sale. All done in one simultaneous behind the scene process that takes seconds.
Key points to consider:
The Dfin Platform is not to be confused withDonnelley Financial Solutions (Dfin) This publically traded firm has a history spanning several decades, the company is dedicated to improving financial reporting and regulatory compliance. Originally part of RR Donnelley, Dfin is now an independent entity focused on providing comprehensive services that simplify complex financial processes.
1) A virtual gift card system is not a closed loop. If branded network cards are used to facilitate the transaction and the acquiring bank is not taking on the responsibility of self-funding the entirety of the transaction, it is not a fully closed loop. Most systems that tout being closed loop may resemble a closed loop network, but they lack the necessary banking relationships to be fully closed loop. As a result, merchants do end up being funded by the card brands directly. In the case of cannabis payment workarounds, the networks take particular offense to funding what they consistently refer to as “prohibited transactions.” Time and time again, they have proven they do not consider workarounds like gift card systems to appropriately de-risk them. Look up the history of Lynx Card.
2) Because cannabis is schedule 1, every time a customer pays for product, a minimum of a KYC, SAR reports, as well as OFAC and OCC filings must be submitted to the appropriate regulatory filings. This is a high cost and has been an insurmountable price for every cannabis payment provider until now. Also, the processor has no way of gathering the proper information to accurately file these regulatory requirements if the transaction is as simple as a traditional tap or swipe.
3) The Dfin platform also advertised business’ descriptors on customer bank statements. Although, in theory, this can be done with the appropriate banking relationships, the card networks have also used this in various enforcement cases. It is not an established legal standard yet, but they have asserted that a descriptor is proof of a merchant account, and since cannabis lacks an mcc code, cannabis businesses cannot have a merchant account, without miscoding being performed, which is a form of money laundering, bank fraud, and wire fraud.
4) Lastly, the Dfin platform assured customers all funds were held in an MRB friendly custodial account. This is not satisfactory for a payment processor. At minimum, they must be banked by a MRB friendly bank who are comfortable banking Tier 1 and 2 businesses. Also, most importantly, you still need a specific type of back-end bank to facilitate the transactions, and these cannabis payment workarounds never have or maintain these relationships, which is why they get shut down.
In the world of finance, compliance is not just a regulatory requirement; it is essential for successful operations. Get Cannabis Payments places great importance on following applicable laws and regulations, particularly when it comes to unclaimed property.
Understanding the damage done to merchants when they are owed funds is of crucial importance for the Get Cannabis Payments team. Failure to comply with relevant regulations can result in legal consequences and damage to reputation. By implementing strict compliance measures, we help ensure proper handling of property and reduce risks associated with potential audits or penalties.
Get Cannabis Payments‘ commitment to regulatory compliance acts as a protective measure for its clients, allowing them to concentrate on their core business activities without worrying about potential legal problems arising from mishandled transactions. As industries evolve—especially those facing unique challenges such as cannabis—the role of trustworthy financial partners like Get Cannabis Payments becomes even more important in upholding integrity and transparency throughout financial dealings.
First, move your payment processing business ASAP. We have all fallen victim to a talented sales rep. But you need to be able to adust your perception quickly. Get Cannabis Payments ALWAYS pays next day. We do not hold any funds or have platforms operate with funds in arrears. Again, if you process with us, your funds are NEVER in arrears. There is no risk of being owed money.
Businesses may find themselves owed money by Dfin through several common sources:
These sources underscore the importance of being extraordinarily cautious when choosing a payments provider.
Claiming owed funds involves a straightforward process that individuals can and should follow:
The cannabis industry in the United States is experiencing significant growth, with an increasing number of states legalizing both medical and recreational use. However, despite this growth, many businesses face persistent challenges regarding payment processing and banking relationships.
1. Limited Access to Banking Services
Many banks hesitate to work with cannabis-related businesses due to federal regulations. As a result, cannabis merchants often struggle to establish reliable banking relationships. This limitation can lead to cash-intensive operations, increasing risks associated with theft and fraud.
2. Payment Processing Restrictions
Traditional payment processors may refuse services to cannabis businesses due to the complexities surrounding legality and compliance. This creates hurdles for merchants trying to implement efficient payment solutions that cater to their customer base.
3. Regulatory Compliance
Cannabis merchants must navigate a web of local, state, and federal laws. Ensuring compliance can be labor-intensive and requires specialized knowledge. Failure to adhere to these regulations can result in severe financial penalties or loss of business licenses.
Understanding the regulatory landscape for cannabis payment processors is essential for businesses operating in this sector. Key regulations include:
KYC Requirements
Know Your Customer (KYC) protocols are critical for financial institutions and payment processors dealing with cannabis-related transactions. These requirements involve:
Compliance with KYC not only fosters trust but also protects businesses from potential legal issues.
Suspicious Activity Reports (SARs) play a significant role in monitoring financial transactions within the cannabis industry. Payment processors are mandated to file SARs when they detect suspicious activity, which may include:
By filing SARs, processors help law enforcement agencies track and investigate potential illicit activities linked to cannabis sales.
The Office of Foreign Assets Control (OFAC) maintains lists of individuals and entities that are prohibited from engaging in financial transactions within the U.S. For cannabis businesses, the implications of OFAC filings include:
Navigating these regulations requires astute awareness and proactive measures by cannabis payment processors. Understanding KYC, SAR reports, and OFAC filings is crucial for maintaining compliance while ensuring smooth operational flow within the cannabis industry.
Selecting a reliable cannabis payment processor is crucial for businesses navigating the complexities of the industry. Here are essential criteria to consider when evaluating potential cannabis payment providers:
1. Regulatory Compliance
Ensure the provider adheres to federal and state regulations. This includes Know Your Customer (KYC) requirements and proper reporting of Suspicious Activity Reports (SARs).
2. Experience in the Cannabis Sector
Choose processors with a proven track record in the cannabis industry. Familiarity with unique challenges faced by cannabis businesses enhances their ability to provide tailored solutions.
3. Reputation and Reviews
Research customer feedback and industry reputation. A reliable processor will have positive testimonials and case studies demonstrating successful partnerships with cannabis businesses.
4. Technological Infrastructure
Assess the technology used for transactions. A robust platform should offer seamless integration, secure processing, and user-friendly interfaces.
5. Customer Support
Evaluate the level of customer service provided. Responsive support is vital, especially during critical transaction periods.
Adopting an MRB friendly custodial account can significantly benefit cannabis businesses. These accounts offer specific advantages:
Understanding how to select a trustworthy payment processor combined with utilizing MRB friendly custodial accounts can enhance business operations within the challenging landscape of the cannabis industry.
Several challenges can arise concerning Dfin Cannabis call outs in the context of financial transactions:
Understanding these issues is essential for anyone who believes they may be owed money by Dfin.
The cannabis industry faces unique challenges, particularly when it comes to payment processing. As businesses navigate this complex landscape, they must remain vigilant against fraudulent payment platforms that can jeopardize their operations.
Identifying potential scams requires awareness of several key warning signs:
Operating within the cannabis industry involves navigating a myriad of legalities, particularly concerning financial transactions. Engaging with fraudulent payment platforms can lead to serious consequences:
Being proactive in recognizing these warning signs and understanding the legal implications helps protect cannabis businesses from falling victim to fraudulent schemes. Awareness fosters informed decision-making when selecting a payment processor, ensuring compliance and safeguarding financial interests.
Get Cannabis Payments stands out as a legitimate payment processor tailored specifically for the cannabis industry. Understanding the unique challenges faced by cannabis merchants, this company has developed solutions that cater to their needs.
By focusing on these critical aspects, Get Cannabis Payments empowers cannabis businesses to thrive in a complex financial landscape. The combination of next day funding and specialized processing options positions them as a trusted partner for merchants navigating the intricacies of cannabis-related transactions.
If you suspect you are owed money by Dfin Cannabis, taking action is essential. Owed funds are unacceptable and by working with Get Cannabis Payments, you will never have to have this worry again.
The cannabis sector faces unique challenges, particularly concerning payment processing and compliance. Awareness of these issues empowers individuals and businesses alike to make informed decisions regarding their financial transactions.
Trusting Get Cannabis Payments can streamline your transaction handling. This legitimate processor offers reliable solutions tailored for the cannabis industry, ensuring efficient management of funds. By leveraging their services, businesses can focus on growth while minimizing payment-related stress.
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