Marijuana dispensaries and other cannabis-related companies have operated as legal businesses within their state boundaries for several years. Unfortunately, many struggled to establish themselves with financial institutions because of the federal regulations against the use and sale of cannabis.
Banks Avoid Conflict
Existing federal laws made it illegal for financial institutions to become involved with companies operating in the cannabis trade. Community banks were less regulated and accepted the money from companies that did not have ties to criminal activity, but the financial institution had to guarantee all deposits were from legal means and would not fund illegal actions. Many banks chose to protect themselves by refusing loans to these businesses and not allowing them to have checking or savings accounts at their institutions. Some even refused to allow personal accounts for the owners of the companies.
Business Owners Suffer
The businesses and the owners suffered from this decision. They endured security risks because they had to keep substantial amounts of cash on their properties. Payments for business expenses were often paid with cash because of the inability to convert the money to any other payment method. The shops could not even accept checks or credit cards from their customers.
Changes Have Begun
Business owners have found ways around the problem. Some disguise the purchase by labeling the items bought as gardening or medical supplies on the receipt. The method could become a problem if the credit processing company discovers the deceptive wording. A more reliable method of cbd oil credit card processing is through a high-risk merchant account. The companies that offer these accounts work with business owners in non-mainstream industries where there are high credit risks. The merchant accounts offered by these companies have all the same perks as any other processing service, so the seller has the freedom to operate their business in a professional manner.
New opportunities arise within the industry as the use of cannabis and cannabis products becomes more accepted. However, a conflict will exist until federal laws regarding the sale and use of cannabis changes. Anyone in the industry will need to spend a little extra time to find the companies that accept and appreciate their business.