Cannabis Banking Services to Grow Your Business

Feb 25, 2019

Hundreds of companies are thinking of applying for medical marijuana licenses as it can be a very profitable industry indeed. More banks are offering services to the cannabis industry than years ago, but a banking gap hasn’t been eliminated yet. Why? Well, cash still remains king. If you need proper cannabis banking services, this article is right for you.

Payment Processing Services for Cannabis Businesses

The majority of legal cannabis dispensaries are associated with cash payments. The reason is that US banks connected to the US Federal Reserve stay away from offering credit card processing services to cannabis businesses. Federal law considers cannabis illegal and supersedes state law.

On September 26, 2018, in California, Governor Jerry Brown signed Assembly Bill 2020 into law. It’s designed to allow local governments, including towns and cities, to offer or refuse temporary cannabis licenses for events.

AB 2020 is limited to the state of California and may not be regarded as the most powerful solution, however, it’s significantly aimed at legalization. States that haven’t yet legalized cannabis for recreational purposes can take a look at California’s local and community governments deciding how temporary cannabis permits for festivals, workshops, and other events, and how communities take advantage of these events.

Overall, there’re a number of businesses that can greatly benefit from cannabis legalization. These include:

  • Agricultural and cultivation
  • Commercial real estate for dispensaries and grow facilities
  • Compliance systems and providers
  • Extraction laboratories for CBD
  • Higher education concerning growing cannabis, business ethics, and sales
  • Legal representation
  • Merchant services
  • Packaging and labeling
  • Research and data services
  • Specific software, e.g., point-of-sale or POS devices

Cannabis Banking Services for Merchants

The legal marijuana business accounts for billions of dollars. Commercial operators are trying to find banks that won’t shy away from them. Two of the hardships associated with cannabis businesses have to do with serious security concerns and a lack of funding.

When it comes to reliable and affordable business funding or payment processing services, they can never be a problem if you work with a creditworthy payment processing and merchant funding company like eMerchantBroker.com. By the way, the Better Business Bureau has classified EMB as an A+ payment processing company, and Card Payment Options as an A processor.

EMB, considered the nation’s top high risk credit card processor, is committed to offering only the cheapest and most secure merchant services. So, if you’re struggling to find the best cannabis banking services, just consider turning to eMerchantBroker.com.

The legal cannabis industry is growing and already accounts for billions of dollars. Only these dollars are flowing mostly the old-fashioned way. This is because the indsutry is associated with legal issues, which makes banks refuse to work with this type of businesses. Thankfully, payment processors like eMerchantBroker.com has made it so much easier for cannabis merchants to enjoy quality services for marijuana payment processing.

Apart from the hardships mentioned above, there’s a misconception around the time and effort required to develop, deploy, and maintain a compliant cannabis banking program. It’s important for the cannabis and banking industries to work together, but they don’t know how to do this.

When it comes to what specific services a cannabis business needs, the reality is that this type of businesses need to be able to access any banking resource that any other business in the country needs.

In fact, for cannabis companies, searching for and embracing banking services can be helpful for margins. It’s difficult for smaller companies to handle cash since it too expensive, and operationally extremely limiting.

Finally, cash transactions can mean a number of surcharges, both hidden and explicit. There’re also some security costs, theft risk, cash courier services, and time required for managing the flow of paper bills, and a number of other issues.

So, don’t waste your precious time and resources: just look for a reputable payment processor that can get you the right merchant account for your cannabis business so to start accepting card payments with ease.

Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

Live Chat