Marijuana Banking, Cash Management & Credit Card Processing
The Transaction Group has been working with marijuana dispensaries since 2011 and understands the challenges that these businesses face daily. Even though these businesses are licensed, tax paying entities in states that have voted to approve the sale of marijuana, many banks choose not to work with them.
It’s an unfortunate fact, but understandable. Financial institutions, especially those backed by the FDIC, are very conservative and operate in accordance to all the Federal laws. Marijuana is labeled as a Schedule 1 controlled substance under Federal law.
During the previous Administration there had been a lot of hype and even more hope that marijuana would be reclassified as a Schedule II drug, which would ease some of the tension between banks and marijuana related businesses. Due to the results of the last election, a reclassification is unlikely to happen for a long time.
Hurdles for Marijuana Industry Businesses
Of the obstacles that marijuana dispensary owners deal with, the biggest has always been cash management. For some dispensary owners that don’t have access to banking services, cash management means paying vendors and employees with stuffed paper sacks and finding a new places to stash the trash bags full of cash.
Having alternate customer payment solutions in place, specifically credit card processing services, would certainly slow the influx of cash. But is it even possible for a dispensary to get a merchant account?
Prior to 2012, it was a lot easier for dispensaries to get set up to take credit cards. The last bank that offered merchant accounts to dispensaries stopped doing so in July 2012. Dispensaries that had a credit card payment option for customers lost that option overnight.
Since that ugly day in July, credit card processing providers rushed to throw together other options for dispensaries and their customers. These solutions were ultimately a temporary fix in the absence of traditional style merchant accounts.
These solutions consisted of risky offshore merchant accounts with high rates and painful reserves as well as quasi-electronic bank accounts for dispensaries that included cash management services like armored car cash pick.
New Marijuana Business Banking in 2017
While it will possibly be another 4 years before marijuana is rescheduled and banks across the US open their arms to dispensaries, here at The Transaction Group we’re excited about 2017.
Through one of our banking partners, we’ve introduced a new solution that is a complete cash management solution. This solution includes a bank account in which to deposit cash, pay bills, and make purchases as well as a true credit card processing service.
The most important fact is that this solution is FINCEN compliant. This means that it is compliant with the US Treasury and adheres to all US state and federal laws.
The best fact is that there are no equipment fees, setup fees, monthly fees or early termination fees. There is no contract and no reserves. Merchants received all funds from credit card processing sales within 48 hours.
We’re excited to introduce it marijuana dispensaries in the US and partners of The Transaction Group.
Our services enable all legally operating marijuana dispensaries to:
- Accept all major credit card brands
- Have funds from sales deposited directly into bank account
- Operate more efficiently
- Deliver products to customers (availably of delivery services is state by state)
If you’re ready to start accepting credit cards at your dispensary…
- phone us at (888) 383-8056
- send us an email to firstname.lastname@example.org
We look forward to serving you!