5/26/19 Update: According to customer reviews, iFund420 has closed for businesses. CardPaymentOptions.com will no longer update this review but advises merchants seeking similar services to review our best accounts for companies in the cannabis industry.
Founded in January 2018, iFund420 (ifund420.com) is a small business financing company that claims to provide merchant accounts and banking services to medical marijuana dispensaries. The company appears to function as a DBA or subsidiary of Gravity Finance (gravityfinance.com), a business lender located in Scottsdale, Arizona. iFund420 is one of the few companies that openly advertises its ability to help merchants accept debit and credit cards through a conventional merchant account in partnership with a U.S. bank. This is rare due to the fact that Visa, MasterCard, and most national banks have gone on the record stating that they will not allow their networks to be used for marijuana transactions. iFund420 also advertises that it can process payments for CBD oil vendors and paraphernalia sellers.
Merchants who wish to inquire about iFund420’s solution for cannabis businesses will need to sign a non-disclosure agreement in advance. Ryan McClain is the CEO of both iFund420 and Gravity Finance, which are both headquartered at 7702 E Doubletree Ranch Rd, Scottsdale, Arizona 85258. The company does not disclose its banking relationships on its website, and it’s likely that it guards this information fiercely to avoid regulatory scrutiny.
- Sales & Marketing: iFund420 does not appear to hire independent resellers and has not received any complaints related to its sales practices.
- Costs & Contract: iFund420 appears to offer variable contract terms depending on each merchant’s business type and processing history.
- Complaints & Service: iFund420 has received fewer than 10 public complaints.
- BBB Rating: iFund420 does not have a profile with the Better Business Bureau at this time.
- Rates & Fees: How Merchants Got The Best Rates With iFund420
iFund420 Customer Reviews
Here's What Their Clients Say
|Live Customer Support||No|
|Most Common Complaint||N/A|
We are unable to locate any negative iFund420 reviews on any of the usual consumer protection forums, which is a positive sign that the company is not a ripoff or a scam. The only merchant feedback we have found for iFund420 is this positive testimonial, which states that iFund420 did indeed provide a domestic merchant account for the merchant’s medical marijuana dispensary. iFund420 likely has not accumulated many merchant reviews due to its very brief time in business, but it may also limit the scope of what merchants can post in its NDA. Any company with zero complaints would usually receive an “A” in this section, but we will refrain from issuing a score until we have more information. iFund420 does not list dedicated customer support contact information on its website, but it does offer a general contact number.
iFund420 Online Ratings
Here's How They Rate Online
The Better Business Bureau does not maintain a profile for iFund420 at this time. We therefore will not factor a BBB rating into this review.
iFund420 Fees, Rates & Costs
A Closer Look at The Contract
|PCI Compliance Fee||Variable|
There is very little publicly available information regarding the standard iFund420 contract at this time, and the company’s insistence that merchants sign an NDA before even inquiring about its merchant account solution severely reduces the chances that its pricing and fees will ever become available to the general public. However, iFund420 does claim that it can offer a legitimate merchant account through one of several U.S. banks to medical marijuana merchants. This merchant account will likely come with a per-transaction fee of more than 5% due to the high risk nature of marijuana sales, and there could be monthly fees, annual fees, termination fees, cash reserves, and equipment leases associated with the company’s standard account.
iFund420 uses the term “medical marijuana” in roughly half of its marketing copy and the unqualified “marijuana” in the other half, so it’s unclear whether the company can serve dispensaries that sell marijuana for recreational purposes. While we cannot speak to the actual details of the company’s contract at this time, we do advise merchants to ensure that the NDA enforced by the company does not limit their ability to post about the service they receive in public forums such as CPO. iFund420 has a legitimate reason for limiting the public disclosure of its products and banking relationships, but it should not be allowed to control merchant feedback regarding its pricing or customer service. You should not agree to an NDA that limits your ability to warn other merchants about poor service.
In the absence of any complaints about its pricing, we would ordinarily issue a provisional rating of “A” in this category. However, iFund420’s brief time in business inclines us to withhold a rating for now. If you have any information about the standard iFund420 contract, please share it in the comment section below this review.
iFund420 Employee Reviews & Sales Tacitcs
Should You Work For Them?
|Uses Independent Resellers||No|
|Promotes Deceptive Rate Quotes||No|
|Discloses All Important Terms||No|
iFund420 appears to be a very small operation that relies on digital advertising and referrals to market its services. The company is less than six months old and does not employ a large team of independent sales agents at this time. iFund420 is not very forthcoming about its products, services, or pricing, which may be a tactic for avoiding the unwanted attention of regulators. It has not received any complaints from merchants regarding its sales practices, which is a good sign for any company.
iFund420’s marketing copy claims that the company can provide domestic merchant accounts for cannabis sellers. The ability to process payments through a domestic bank requires either a close relationship with a bank employee who is willing to look the other way or the intentional miscoding of a merchant’s business type. Both approaches are risky and unstable, so it’s rare to see a credit card processor openly advertise this service. However, we have seen no complaints that suggest that iFund420’s advertising is misleading. We will withhold a rating at this time due to the company’s short time in business.
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