MMJ Card Processing Review: Fees, Complaints, & Lawsuits

Name: MMJ Card Processing
Item: MMJ Card Processing
Rating: 4.8
Author: Phillip Parker

By Phillip Parker

Last Updated: May 11, 2022

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MMJ Card Processing Rating

4.8/5

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Note: As of 2022, it appears MMJ Card Processing has rebranded as CannaPay. We will be providing a new profile for CannaPay soon.

MMJ Card Processing Payment Processing

Also known as 420 Credit Card Processing, MMJ Card Processing is a merchant account provider that claims to process credit card payments for marijuana dispensaries. The company appears to be a DBA or subsidiary of Strategic Merchant Partners, a small ISO located in Thousand Oaks, California. MMJ Card Processing is one of only a few credit card processors that advertises a merchant account through a domestic bank that enables marijuana dispensaries to accept debit and credit cards from customers. This is notable because 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. MMJ Card Processing states that it can enable dispensaries to accept Visa, MasterCard, Discover, and American Express credit cards and have those funds deposited into a domestic business banking account.

MMJ Card Processing Location and Ownership

Vince Ferro is the CEO of MMJ Card Processing, which is headquartered at 1434 Dorset Avenue Thousand Oaks, CA 91360, which appears to be a private residence. The company does not disclose its banking partners, but this is likely a tactic to deter regulatory scrutiny.

MMJ Card Processing Review Table of Contents

Costs & Contract: MMJ Card Processing appears to offer variable contract terms depending on each merchant’s business type and processing history.
Complaints & Service: MMJ Card Processing complaints number fewer than 10 on public complaints forums.
BBB Rating: MMJ Card Processing (as Strategic Merchant Partners) currently has an “A+” rating with the Better Business Bureau and has received 0 complaints in the past 3 years.
Sales & Marketing: MMJ Card Processing does not appear to hire independent resellers and has received only 1 complaint related to its sales practices.

MMJ Card Processing Customer Reviews

Here's What Their Clients Say

Key Points
Total Complaints	<10
Live Customer Support	Yes
Most Common Complaint	N/A

Low Complaint Total

We are currently able to locate a few MMJ Card Processing complaints, none of which accuses the company of being a ripoff or a scam. Two complaints have already been addressed in this review, with one related to undisclosed Harbortouch fees and the other related to a high setup fee and poor customer service. In the second case, the merchant stated that MMJ Card Processing didn’t respond to their requests for a refund for months, which is troubling from a customer service perspective. However, the company’s low overall number of complaints will allow it to keep an “A” grade in this category for now. If you have your own MMJ Card Processing complaint to make, please do so in the comments below.

MMJ Card Processing Lawsuits and Fines

We have not found any outstanding class-action lawsuits or FTC complaints filed against MMJ Card Processing. Dissatisfied merchants who wish to pursue a non-litigious course of action against the company should consider reporting it to the relevant supervisory organizations.

MMJ Card Processing Customer Service Options

MMJ Card Processing does not list dedicated customer support contact information on its website, but it does list a phone number and email form by which merchants can contact the company. These options are the bare minimum that we expect from top-rated payment processors for great customer service.

MMJ Card Processing Online Ratings

Here's How They Rate Online

Online Ratings Summary
Product & Service Complaints	0
Billing & Collection Complaints	0
Advertising & Sales Complaints	0
Guarantee & Warranty Complaints	0
Delivery Complaints	0

Under 5 Complaints

The Better Business Bureau does not maintain a profile for MMJ Card Processing at this time, but it does maintain a profile for Strategic Merchant Partners. Strategic Merchant Partners currently has a “A+” rating and is not BBB-accredited. The company has received 0 complaints in the past 36 months.

An “A” Performance

Although this profile is not specifically for MMJ Card Processing, Strategic Merchant Partners appears to share an address and ownership with MMJ Card Processing. We consider this profile to be a relevant document of the service that MMJ Card Processing provides. We agree with the BBB’s rating after taking into consideration the company’s low overall complaint total.

MMJ Card Processing Fees, Rates & Costs

A Closer Look at The Contract

Key Points
Swipe Rate	1.00% - 4.99%
Keyed-In Rate	1.00% - 4.99%
Virtual Terminal Rate	1.00% - 4.99%
Payment Gateway Fee	Undisclosed
Termination Fee	Variable
Setup Fee	$299
Equipment Lease	Variable

Variable Contract Terms

There is very little publicly available information about the standard MMJ Card Processing rates or contract, and the company does not disclose any of its pricing or contract terms on its website. One merchant complaint describes a setup fee of $299, which is very high for the industry, and another (mentioned in the above section) complains of quarterly, annual, and add-on fees from Harbortouch. It is likely that MMJ Card Processing offers variable contract terms depending on each merchant’s business type, but dispensaries can likely expect a per-transaction fee in excess of 5% due to their business’s high-risk nature. Other contractual obligations such as cash reserves and long-term equipment leases may also apply.

Virtual Terminal and Payment Gateway Pricing

In addition to its storefront payment processing services, MMJ Card Processing also dedicates a portion of its website to advertising its virtual terminal and payment gateway services. However, pricing is not disclosed on either of those services. Additional rates and fees, including gateway fees, technical support fees, batch fees, and additional transaction rates typically apply to these e-commerce services.

Higher-Than-Average Pricing

Although the lone setup fee of $299 that we have found is very high for the industry, it would be premature to lower MMJ Card Processing’s score just because it can’t compete with cheap merchant accounts. Any processor that can provide reliable credit card processing to marijuana dispensaries is justified in charging fairly high prices, as this type of processing is still in conflict with Visa/MasterCard protocols. We will assign MMJ Card Processing an “A” in this category with the advisory that its full pricing package may ultimately not be very competitive. If you have any information about the company’s pricing (including any early termination fees or PCI compliance fees), please share it in the comment section below this review.

We also encourage merchants to check out our list of the providers of the best merchant accounts.

MMJ Card Processing Employee Reviews & Sales Tacitcs

Should You Work For Them?

Key Points
Uses Independent Resellers	No
Promotes Deceptive Rate Quotes	No
Discloses All Important Terms	No

In-House Sales Team

MMJ Card Processing appears to be a small operation that relies primarily on digital advertising and referrals to market its services. There is no evidence that the company employs a large team of independently contracted sales agents at this time, and we are able to locate only one MMJ Card Processing complaint that describes nondisclosure of fees by sales representatives. This complaint was filed in relation to MMJ Card Processing’s contract terms through Harbortouch, which included quarterly, annual, and add-on fees that the merchant claimed were never mentioned. It is unlikely that MMJ Card Processing currently uses Harbortouch as its marijuana merchant account provider, so this issue may not be applicable to this particular brand.

In general, this compares favorably to our list of best credit card processors.

Domestic Banking Claim

MMJ Card Processing’s claim that it can 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 MMJ Card Processing’s claims about this issue are misleading. If you need a professional review of MMJ Card Processing’s contract terms, we recommend seeking a third-party statement audit.

Our MMJ Card Processing Review Summary

Our Final Thoughts

A Possible Domestic Option for Marijuana Merchants

MMJ Card Processing rates as a reliable marijuana merchant account provider at this time. However, its high rating is mostly due to a lack of negative feedback rather than a large amount of positive feedback. We do not have a good sense of the company’s contract terms at this time, and we have also found a handful of negative reviews about its customer service. Merchants who sell marijuana products without any THC content may be better served by hemp and CBD merchant account providers.

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About The Author

Phillip Parker

Phillip Parker is an independent card payment expert specializing U.S. and Canadian point-of-sale, e-commerce, and mobile payment acceptance. He has nearly two decades of experience in credit card processing as a journalist and consultant. Phillip is the creator of this website and has written over 1,500 articles covering numerous payment acceptance topics. He has also published critical reviews about most merchant services providers currently in operation.

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Phillip has consulted businesses of all sizes from mom-and-pop shops processing $10K per month to enterprise level organizations processing in excess of $300MM annually. His specialties include:

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Phillip has researched and reviewed over 1,000 merchant services providers over the last 15 years. He also owns multiple businesses that accept credit card payments. If you are looking for an ethical credit card processor that doesn’t hide fees or lock you into expensive contracts, see Phillip’s merchant account picks here.

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