B2B Vault Episode 35: Cannabis & Payment Processing

Cannabis and Payment processing has been a subject that I have been asked about for years. The simple answer is: There are legal ways to accept electronic payments - most of them involve ACH. ATMs that dispense cash are allowed by some banks that provide services to ATM companies. There is Point of Banking machines (similar to an ATM) that are also allowed by some banks. The rules are different for each provider, so we recommend that you do your homework and determine what solution you will choose. The Card Brands has been sending out notices and shutting down dispensaries that are processing using the card brands networks. If you want legal cannabis payments - the short answer is - to keep writing your congresspeople. The House and Senate both need to bring the "SAFE BANKING ACT" to the floor for a vote -several committees have voted on this, and many states have legalized cannabis. When will the Safe Banking Act pass? Your guess is as good as mine... It is a multi-billion-dollar business - that needs national rules and taxes. Local governments are taxing 30-35% of dispensaries, so there needs to be some control over this industry. Congress has the power to do this and no one else! - The States have done the job they can do. Next, it's up to Washington D.C. Many organizations are lobbying for this Safe Banking Act to go through. Each year more banks allow cannabis businesses to open bank accounts. Until then, payment options are limited. Some companies bend the rules too far get shut down. Many have been shut down over the last several years, which results in merchants' funds being held for 6-12 months but is eventually released.