Page 39 - BusinessWest March 7, 2022

open. Blockchain is known for keeping data secure and for providing a permanent record of the data. For this reason, a growing number of banks support blockchain transactions.
Credit card companies recognize blockchain transactions as legal and compliant, so they receive the data of the purchase through the blockchain and the consumer receives the charge on their bill.
While blockchain is often associated with Bit- coin and other cryptocurrencies, Perrier said the system use by Dreamer Cannabis is not involved in any cryptocurrency.
After looking into the viability of the payment system, the partners wanted to make sure it was legitimate.
“I was the first skeptic,” Polatol admits. “Obvi- ously we didn’t want to introduce something that was going to turn people off.”
Said Perrier, “I know the people who cre- ated this platform and their history. They are involved in many other reputable platforms and businesses.”
Another factor in offering credit card use involves keeping the consumer experience quick and simple.
along with the dispensary. Added to the purchase is a 6% transaction fee to cover fees charged by the credit card company and the third-party platform. Customers can open an account with Dreamer to simplify the process. Using Apple Pay or Google Pay also requires fewer clicks to make a purchase.
“The transaction gets processed on a parallel channel and stays off the credit card networks,” Polatol said. “The purchase data is then forward- ed to the credit card company from the third party, which keeps it all legal.”
Dreamer is the first cannabis dispensary in Massachusetts to accept payment by credit card. Perrier said there are a few similar efforts at other ventures across the state, but they are simply downloadable apps that tie into the person’s bank account and function like a debit card.
“All those apps really do is help the person avoid the $3.50 transaction fee,” Perrier said, add- ing that a debit account is only as viable as the funds that are available in it. “If you try to buy something on Wednesday and your paycheck doesn’t land in your account until Thursday, that money is not available to you until then.”
Offering the option of charging a purchase on a credit card brings huge potential for increasing business. Allowable limits of purchase still apply, of course. In Massachusetts, consumers may pur- chase up to one ounce of “flower,” which is the plant form of cannabis, or five grams of concen- trate per day.
“We’re hoping it’s a win-win,” Perrier said.
Credit
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“California has a more-developed cannabis market as they’ve been working with it much longer than any other state. Trends in cannabis seem to start there and migrate east.”
“The ability to use a credit card makes purchasing cannabis more acces- sible to consumers,” Perrier said not- ing that using a debit card to buy can- nabis is different than other debit card purchases.
For example, if a customer wants to use their debit card to make a purchase of $95.17, they take the equivalent of an ATM withdrawal through the dispen- sary’s system. Because it is an ATM with- drawal, they would round up to $100 to
“Most people are not familiar with crypto, it’s complicated to use and it’s not stable,” he said. “The system we use runs on blockchain, but does not use crypto.”
Perrier said he and Polatol dug deep in their research and spoke with dispensaries in Califor- nia who use this platform, eventually selecting a company from the Golden State.
“California has a more-developed cannabis market as they’ve been working with it much lon- ger than any other state,” Perrier said. “Trends in cannabis seem to start there and migrate east.”
pay for their purchase and then receive the differ- ence in cash. The customer must also pay a $3.50 transaction fee for using their debit card.
“We see a lot of head-scratching from first time customers,” Perrier said. “We’re hoping that using credit cards will make it a more straightfor- ward and quick transaction.”
To make the same $95.17 purchase with a credit card, the clerk will ask for the person’s mobile phone number and send them a link. The purchaser inputs their credit card information and receives acknowledgement of the purchase
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