The economics of dispensary payments: percentages vs. flat fees

Dispensaries do not get standard card processing, so the market has filled with workarounds: point-of-banking terminals, pay-by-bank apps, and various ATM arrangements. They differ in mechanics, but most share one trait: the cost scales as a percentage of your sales.

What a percentage really costs

A program that takes 3.5 percent plus 30 cents per transaction sounds abstract until you put your own volume through it. At $80,000 a month in card-style volume, that is roughly $2,400 a month, or about $29,000 a year, before chargebacks, reserves, or the occasional frozen settlement that this category is famous for. The number is illustrative; your statements are the real input.

Why percentages punish growth

The deeper issue is the shape of the cost. A percentage means your payment provider gets a raise every time you grow, without doing anything new. Your rent does not work that way. Your POS does not work that way. Payments are the one line item that quietly indexes itself to your success.

What a flat convenience-fee model changes

In a Remote ATM flow, the customer pays a flat, disclosed convenience fee for the cash-access transaction, the way they would at any ATM. There is no percentage riding on the basket, so the merchant's cost does not grow with ticket size. The fee is visible to the customer before they confirm, which also means no surprise math at the register.

How to compare offers honestly

Bring three numbers to any conversation, including one with us: monthly volume, average ticket, and your last two processing statements. Any provider should be able to show you the math both ways, in writing, with the assumptions labeled. That is how we run the economics portion of a fit check, and the assumptions stay on the page.