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Cannabis Dispensary Bank Accounts & Credit Card Processing

cannabis banking credit card processingWhen it comes to cannabis dispensary bank accounts and credit card processing, we at The Transaction Group, know how frustrating it’s been for businesses. Even though these dispensaries are licensed and legal businesses in states that have voted in favor of marijuana, many of these businesses have zero options when it comes to banking.

The seemingly over-conservative nature of financial institutions is somewhat understandable. Banks under the care of the FDIC must adhere to the law. The fact is, cannabis remains a Schedule I drug under the Controlled Substance Act.

During the previous Administration there were rumors among industry advocates that cannabis would be rescheduled. Obviously that did not happen and it will likely been a long time before marijuana and cannabis related products are reclassified.

Hurdles for Cannabis Industry Businesses

Cash management has probably been the greatest struggle for business owners over the past 5-10 years. The definition of cash management for cannabis dispensary owners is paying vendors and employees with wads of cash and finding new places to stash trash bags full of it.

Having credit card processing services for cannabis dispensaries in place helps to control the influx of cash and offers a value-added convenience to customers. But where do these businesses get a merchant account that will allow them to take credit card payments when they can’t even get bank accounts?

It used to be possible for cannabis dispensaries to get merchant accounts. However, banks and merchant account providers began to halt the boarding of merchants in the industry about 6 years ago. The last processor to offer these services pulled out in July 2012.

Since that dark day in July 2012, providers scrambled to come up with alternative credit card processing solutions for cannabis dispensaries. Most of these clever alternatives were merely a temporary fix to traditional style merchant accounts previously available.

Some solutions were high-risk offshore merchant accounts with incredibly high rates and reserve requirements. And some were creative solutions that enabled customers to load a gift style card using a credit card and swipe that card at checkout at a dispensary. These solutions even included services like armored car cash pick up and an electronic bank account.

These solutions, unfortunately but also thankfully, proved to be not so reliable for dispensary owners.

Cannabis Dispensary Banking & Credit Card Processing in 2017

It would be safe to say that it’s very unlikely that marijuana will be reclassified any time soon and that it may be several years before banks begin to accept these businesses with open arms.

But here at The Transaction Group, we’re excited about 2017. We’re confident that this is going to be a big year for cash management for the cannabis industry.

Together with one of our processing partners, we’re helping to launch a complete cash management solution. This new solution includes a bank account, cash depository kiosk, and a true credit card processing service for cannabis dispensaries.

This program is compliant with US Treasury laws and requirements (FINCEN compliant).

There are:

  • No setup fees
  • No equipment fees
  • No monthly fees
  • No contract or early termination fees
  • No reserves

We’re proud to introduce this complete cash management solution to dispensaries and ISO/agent partners of The Transaction Group.

If you’d like more information on our marijuana credit card processing, cash management banking solution give us a call today at 888-383-8056.