LOS ANGELES- On April 20th, the cannabis community celebrates a day of significance – a day marked not only by camaraderie but also by substantial commercial activity. However, this year’s 4/20 brought a bitter experience for many marijuana retailers relying on the Dutchie e-commerce system.
According to reports by MJBizDaily, Dutchie’s point-of-sale (POS) software experienced widespread outages, leaving cannabis businesses grappling with operational disruptions during one of their busiest days. From Michigan to Oregon, retailers faced challenges as the Dutchie POS system crashed for several hours, impeding both online and in-store purchases.
Jerry Hicks, an operations manager at Pure Cannabis Outlet in Michigan, expressed frustration, stating that the outage left them “literally helpless,” unable to serve their customers or manage essential functions like inventory.
Dutchie, a Bend, Oregon-based company, responded to the crisis, acknowledging the issues faced by some of its clients. Chris Ostrowski, Dutchie’s Chief Technology Officer, emphasized the company’s commitment to stability while highlighting the monumental scale of transactions processed through their platform – over 2 million transactions totaling $165 million, a staggering 50% increase from the previous year.
This outage, however, is not an isolated incident. Similar disruptions occurred on April 20th, 2023, underscoring the systemic challenges faced by marijuana retailers relying on digital payment systems.
Wendy Bronfein, co-founder of Curio Wellness, likened the outage to a retail giant experiencing technical difficulties on their busiest day. The financial repercussions were significant, with Bronfein estimating losses of $80,000 and the cancellation of nearly 1,000 preorders.
Bronfein’s remarks echo a sentiment prevalent in the cannabis industry – the urgent need for financial reforms. She advocates for accessible payment methods and emphasizes the importance of initiatives like SAFER Banking to ensure uninterrupted access to legal cannabis.
However, amidst the chaos, there emerged a glimmer of hope. Mark Collins, President of HCN Pay, highlighted the proactive approach taken by their payment aggregator service. Collins, who also serves as the CFO of Grupo Flor, reassured customers that HCN Pay constantly monitors the payments space and swiftly transitions between providers to avoid outages like the recent incident with Dutchie.
“As a CFO of Grupo Flor, I know that it will not fall over,” Collins asserted confidently.
For those seeking reliable payment solutions in the cannabis industry, HCN Pay offers a beacon of stability. Mark Collins can be reached at [email protected] for further inquiries about payments systems that wont fall down.
This article draws upon reporting by MJBizDaily.
