Three Ways To Address Banking Problems For Your Cannabis Dispensary Business

If you are a business owner or a prospective business owner of a cannabis dispensary, you need to understand that banking is the biggest issue for the industry. The reason for this is that even when it is legal at the state level, it is still illegal at the federal level. Banks are federally insured, so they are subject to anti-money laundering laws. For this reason, banks do not want to do business with cannabis dispensaries. Without banks, you'll have to accept cash, and a cash business attracts a lot of bad people. The following are a few things to think about.

You can open an account with a fictitious business name

The first thing you do is choose a name that isn't related to marijuana and avoid any logos or signage that reflects this. You can file a "doing business as" (DBA), and you can then open a business account. This will solve your problem until they discover what your business does. Although you're not doing anything illegal, they may not want your business, so your accounts may be canceled.

You may be able to take debit cards

Debit cards are different from credit cards and are treated like cash. The money is already in the customer's account, so many merchant processors will allow it. Because there are higher risks associated with this type of business, the fees will be higher, but less cash will be changing hands in your store. However, an alternative to this would be to install an ATM inside your store. However, you still have the problem of security for your cash and what to do with it.

There may be cannabis banking services in your state

A cannabis bank will openly talk about its services for cannabis businesses. These are usually state-chartered banks, and the federal government is aware of them. In fact, there has been an increased effort to make it easier for cannabis companies to open bank accounts. This type of bank will accept your business under certain conditions. Transparency is at the heart of your relationship with the bank. This type of financial institution will have specific requirements for your business, so you have to be very serious about following them.

Unless you think you can fool a bank, you can look for merchant processors who will work with you with debit cards, but the fees are high. This leaves the possibility of a dispensary-friendly bank, but not every state has them. If one exists, they will not be secretive about it. They will have a clear set of rules that apply to your type of company, and you must follow them. In the future, it may be that there are new laws at the federal level that will make it much easier for bankers and dispensaries.

For more information, contact a company like Paybotic.