What to Do When Your Payment Processing Goes Down

The cannabis industry is no stranger to high-pressure situations, especially during major holidays like 4/20, Green Wednesday, or New Year’s Eve, when sales can skyrocket. These peak times are vital for driving revenue and customer loyalty, but they can also expose vulnerabilities in payment processing systems. If your cannabis business faces a payment processing outage during one of these critical days, knowing how to respond quickly and effectively can make all the difference.

Here are actionable tips and insights to help you navigate this challenging scenario, minimize disruptions, and protect your business reputation.

1. Stay Calm and Assess the Situation

The first step is to remain calm and methodical. A payment processing outage can be stressful, but panicking will only slow your ability to respond. Start by determining the scope of the issue:

Is the problem localized or widespread? Check if the issue is limited to your store, a particular terminal, or if it’s affecting multiple locations.
Contact your payment processor. Reach out to your provider immediately to report the problem and gather information about the outage. They may already be working on a solution or provide an estimated resolution time.

Once you understand the issue, you can start implementing workarounds and communicating with your team and customers.

2. Communicate Clearly with Your Team and Customers

Transparency is critical during an outage. Keep your staff informed so they can confidently address customer concerns and provide updates.

For customers:

Post signage: Place clear signs at the entrance and checkout areas explaining the situation.
Use social media: Update your business’s social media channels to inform customers about the outage and any alternative payment options.
Apologize for the inconvenience: Show empathy and gratitude for their patience. A little goodwill goes a long way in maintaining customer loyalty.

For staff:

Train your team on the backup plan: Ensure all employees understand the temporary measures in place and how to execute them.
Encourage positivity: A calm, upbeat attitude from staff can ease customer frustration.

3. Implement Alternative Payment Options

Having contingency plans in place is crucial for situations like these. If your main payment system is down, consider the following alternatives:

Cash Transactions:
- Ensure your store has enough change on hand to handle cash-only transactions.
- Post signs encouraging customers to bring cash for quicker checkouts.
Manual Card Processing:
- If you have a backup terminal, process credit and debit cards manually by taking imprint slips or writing down customer details (only if this complies with security standards).
- Keep detailed records of all manual transactions to reconcile them later when the system is back online.
Mobile Payment Apps:
- Use mobile wallet solutions that might still work independently of your primary payment processor.
- Platforms like Venmo, Cash App, or Zelle can offer temporary solutions, though you’ll need to ensure compliance with local regulations.
Discounts for Delays:
- Offer incentives like discounts or loyalty points to customers who experience delays due to the outage. This helps to maintain their trust and loyalty.

4. Monitor Inventory and Sales Closely

During a payment processing outage, manual transaction tracking is essential to avoid errors and inventory discrepancies. Assign a staff member to:

Record every sale manually.
Track inventory depletion in real-time to prevent overselling products.
Keep receipts and transaction logs organized for reconciliation later.

Having a robust point-of-sale (POS) system that allows for offline mode can also help during outages. Some POS systems will store transaction data locally and sync with your payment processor once the system is restored.

5. Review and Strengthen Security Measures

Payment outages can sometimes make businesses more vulnerable to fraud or theft. Strengthen your security practices during an outage to protect your customers and business:

Limit manual card processing to trusted employees only.
Keep all cash stored securely, and increase cash drop frequency to reduce the risk of theft.
Verify customer IDs rigorously during transactions to prevent fraud.

6. Learn from the Experience

After the outage is resolved, take time to review what happened and identify areas for improvement. Consider these questions:

What caused the outage? Work with your payment processor to determine the root cause and ensure it doesn’t happen again.
Was your team prepared? Evaluate how well your staff handled the situation and identify areas where additional training or resources are needed.
Were your contingency plans effective? Assess the success of your backup payment solutions and make adjustments as necessary.

7. Build a Better Contingency Plan

A proactive approach is the best defense against future outages. Here’s how to prepare:

Choose a reliable payment processor: Work with a cannabis-specific payment processor like Rassman Payments that understands the unique needs of your industry and has proven reliability during high-demand periods.
Invest in redundancy: Have multiple payment systems in place, so if one fails, another can take over seamlessly.
Train your staff: Regularly train employees on how to handle outages and execute contingency plans.
Communicate with customers: Include messaging about your backup options in marketing materials, so customers know what to expect during outages.

A payment processing outage during a major holiday is a challenge no cannabis business wants to face, but with preparation and a calm, strategic response, you can turn the situation into an opportunity to build trust and loyalty. By implementing alternative payment solutions, keeping customers informed, and learning from the experience, your business can emerge stronger and better equipped for future challenges.

At Rassman Payments, we specialize in cannabis payment solutions designed to keep your business running smoothly, even during high-demand periods.