Welcome to B.I.G. News
Bankcard International Group
The Gold Standard in High Risk Merchant Accounts
Intro. by Mark Oury, Director of Business Development
As the Director of Business Development for BIG I work closely with both the sales and marketing departments to create efficiencies and educate our team and our clients.? There is no better place to share our experience and knowledge than on the road and in person at great events around the country.
This week we proudly exhibited at another amazing MJ Unpacked event in Detroit.? In the world of cannabis, MJ Unpacked isn't just another run-of-the-mill event; it's an exclusive gathering that brings together nationwide license holders and accredited investors, creating an ideal platform for collaboration and strategic planning. This is where movers and shakers in the cannabis retail and brand industry congregate. An event reserved solely for those bearing the titles of manager or above, as well as investors actively engaged in the cannabis arena.
MJ Unpacked is not your typical sprawling convention. Instead, it prides itself on being a meticulously curated and intimate affair. ?Designed to foster connections and make networking not only productive but also enjoyable.? This year's event in Detroit did not disappoint!? For those of you we were able to meet in person?
As the convention season winds down - everyone is focused on the event of the year at MJ BizCon.? By and far the most anticipated show of the year.? We will be bringing the entire team from executives to service and look forward to seeing everyone there.
We hope you enjoy this week's edition of BIG News.
Sincerely,
Mark Oury, Director of Business Development, Bankcard International Group
CannaFirst is one of the most needed resources in the cannabis space, and a key partner of ours. We're delighted to be featuring them in this month's spotlight. ?CannaFirst Financial is the go to source for financial services in the Mississippi and Alabama regions.
Supported by a long-established Mississippi bank with over a century of experience, CannaFirst Financial represents a specialized team of banking experts who collaborate closely with cannabis entrepreneurs and their associates. Their mission is to offer ongoing financial services and regulatory support to ensure the sustained success of your business.? CannaFirst Financial operates under the umbrella of Merchants & Marine Bank.
We asked Jon Parker, Director of Sales for Cannafirst a few questions to get to know him better.
BIG: Pick three of the most representative words you would like to use to sum up the essence of your business.?
Joe: modern, compliant, trailblazing
BIG: How long have you been in business? How did it all start for you as a company and what has the journey looked like??
Joe: June 2022, Brand new industry that was going to need compliant banking. We knew we could do it and do it right. It’s been a roller coaster ride. We do a great job of pivoting when necessary.?
BIG: Briefly (one sentence is fine) tell us why did you got into the Cannabis industry?
Joe: Merchants and Marine Bank needed someone with sales experience. Someone who could learn a product, believe in that product, and then go share that product within the industry. I was just the right guy.
BIG:?To get to know each of our clients better, what is your favorite thing to do outside of work?
Joe: Hunt, fish, & cook
BIG:We are all about music and love it all, but what's in your playlist right now? – if not a playlist song, how about a favorite song or artist? And if there is a reason, why?
Joe: Everything from Tyler Childers to Taylor Swift – Luke Combs to Snoop Dog. Literally everything
BIG:?If you could be any type of animal, what would you be and why?
Joe: ?I guess something at the top of the food chain, a lion or killer whale. Dang sure want to be at the top.
BIG:?Time for a little self-promotion... What is your favorite thing about working with BIG? What do WE bring to the table that you love the most?
Joe: Our partnership has only just begun but I would say that so far, we really like all the personalities within the BIG team members.? CFF had the opportunity to spend some time with Kelli at the conference in D.C. recently and really enjoyed getting to know her.
Well said Joe!? We look forward to contuniuing to impress CannaFirst while helping your clients establish compliant and dependable payment processing!
Check out their WEBSITE HERE
Visa recently released its Fall Interchange and Update, which can make merchants feel apprehensive. These updates, which typically occur twice a year, bring changes to interchange rates and fees set by card networks like Visa and Mastercard, impacting how much merchants pay for credit card processing.
Unlike the 2022 updates, the Fall 2023 updates brought minor changes to interchange fee schedules, but they're still expected to cost merchants significantly. One data source predicts that these changes will result in an additional $502 million in expenses for merchants each year.
It's essential for businesses to stay informed, work with reputable MSPs, and adapt to these changes to maintain financial health in an increasingly cashless world. If you're seeking cost-effective merchant service rates and dependable services, consider reaching out to Bankcard International Group for assistance.?
Read our overview of the changes that have been implemented, how they may affect your business, and who benefits the most from the interchange updates.
The major topic around the water cooler and online for the cannabis industry seems to still be contemplating the SAFER Banking Act and the recommendation to re-schedule cannabis.? While these two moves are historic, we have already covered them pretty extensively.? So this week, we ask you:
What do you want to talk about?
Let us know what topics you would like to hear about, discuss, argue over, and share.? Write us at [email protected] or send us a DM on LinkedIn.
Infographic of the Week
We often get asked, "Why is credit card processing so expensive? ?You guys must be getting rich!" ?Well, while every business opens its doors to make money, in merchant services provider there are a lot of parties involved. ?
Below we take a hypothetical $100 transaction run on a traditional Visa rewards credit card with an interchange rate of 1.65% & $0.10/transaction.? We made the assumption that the payment processor is charging the merchant on the Interchange Plus method at 0.25% and $0.05.? Here is what that would look like:
That does paint a different picture than most assume and clearly shows that the card issuing banks are the ones making the lion's share of the processing fees that merchant have to pay.
The goverment has tried to pass bills, like the Durbin Amendment, which failed to provide noticable savings to all but the largest retailers.? Many argue that it actually caused rates to go up for not only merchants but consumers as well.
More recently they proposed Credit Card Competion Act, which we discussed in our blog and would also seem to be a poorly structured effort to reign in costs for business owners.
So what can business owners do to control the cost of their processing?? Here are few ways:
1. Learn all that you can about credit card processing fees so that sales reps can't try to pull the wool over your eyes.
2. Work with a reputable and professional merchant service provider who knows how to maximize the effiency of your merchant account and guarantees you a fixed rate.
3. Read your statements thoroughly - EVERY MONTH.? Calculate your effective rate (total fees/total sales*100) and call with any significant changes month to month.
4. Don't stand for annual or biannual processing rate increases - you can't control interchange but you can tell your processor they can't raise your rates too.