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Marijuana Dispensary Banking & Credit Card Processing Services

marijuana dispensary bankingHere at The Transaction Group, we understand the frustration that many marijuana dispensaries face every day. Although these businesses are legal and licensed businesses in states that have voted ‘Yes’ to marijuana, banking & credit card processing services are often not available to these businesses.

Financial institutions, especially those federally insured by the FDIC, are very careful and very conservative. Therefore, their position is somewhat understandable. The fact is that marijuana remains a Schedule 1 drug under the US Government’s Controlled Substance Act.

There was much hype and even more hope that marijuana would be reclassified to Schedule II drug during the last Administration, which would have eased tension in regard to marijuana banking and credit card processing services. That’s not likely to happen for a long time.

Hurdles for Marijuana Dispensaries

Possibly the greatest obstacle for dispensary owners has always been cash management. Many of these businesses do not have bank accounts or banking services. To them, cash management means paying vendors with wads of cash stuffed in paper sacks and determining new places to hide trash bags full of cash.

This cash on hand dilemma is alleviated to a degree by having a credit card processing solution that allows customers to pay with plastic instead of paper. But the question is then, where does a dispensary that can’t even get a bank account get a merchant account to process credit cards?

In the olden days (pre-2012), there were banks and processors that still offered merchant account services to dispensaries. In July 2012, that ended. Dispensaries lost this value-added customer convenience overnight as the last marijuana dispensary credit card processing provider pulled out completely.

After that ugly July, processors scrambled to come up with clever new solutions that would allow dispensaries to accept credit card payments from customers. These solutions worked as a temporary fix in the absence of traditional style merchant accounts.

Some solutions were super high-risk offshore merchant accounts with insanely high rates and reserve requirements. Some were well-developed solutions that enabled customers to use a credit card to load a gift-style card and swipe that card at checkout. Those solutions even offered nifty services like armored car cash pick up and a cash depository with online access.

Unfortunately for dispensaries, but also thankfully for dispensaries, these solutions would prove to be not so good.

Marijuana Dispensary Banking & Credit Card Processing in 2017

It would be a safe bet that it will be another 4 years before marijuana becomes a Schedule II and that banks in the United States begin to adopt cannabis related businesses into their portfolios.

However, The Transaction Group is excited about now. We’re confident that 2017 is going to be a big year for the industry and cash management.

Through one of our banking partners, we’re helping to launch a new solution that completely covers cash management. This solution includes marijuana dispensary banking with an account for cash deposits and paying bills as well as a true credit card processing service.

This program is a FINCEN compliant meaning it is a US Treasury approved solution that adheres to all state and federal laws.

There are:

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

We’re excited to introduce this banking and cash management program to marijuana dispensaries in the US and 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. 888-383-8056.

 

 

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