From the very beginning, cannabis merchants have been unable to secure payment processing from traditional sources. Unwilling to work with the risks associated with marijuana businesses, banks turn these merchants away. To secure marijuana dispensary funding, these businesses began turning to alternative providers like First American Merchant.
According to recent federal data, the number of banks that are willing to work with marijuana businesses is steadily climbing, despite the Department of Justice revoking protections for state cannabis laws. Immediately following U.S. Attorney General Jeff Session’s decision (this January) to revoke Obama-era Justice Department guidance, which protected state marijuana laws, the total has been climbing once again.
In fact, by the end of March, 411 banks and credit unions in the U.S. were “actively” operating accounts for marijuana businesses, according to a report from the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) – up more than 20 percent from when President Trump took office early last year.
Growing Number of States Continue to Push for Cannabis Use
Why has it been such a huge problem for banks and credit unions to offer their services to the cannabis industry? The number of states pushing to allow cannabis for recreational or medical use continues to grow. Federal prohibition continues to remain very much unchanged, for now. This places financial institutions at risk of getting entangled in U.S. money laundering and other laws.
This obviously creates a huge problem for marijuana businesses themselves. Because of financial services providers’ reluctance to work with them, they are forced to work in cash-only. This is not only impractical, but it is also incredibly unsafe. They have become a huge target for robberies.
The Solution: Alternative Providers
While the number of banks and credit unions willing to work with the industry is growing, there are still huge obstacles that will take time to overcome. In the meantime, cannabis merchants need solutions now. Alternative providers like First American Merchant have become the go-to solution.
First American Merchant recognizes that marijuana is a billion-dollar industry full of potential that is just getting started. In addition to offering marijuana merchant accounts, which provides payment processing solutions, FAM also offers marijuana dispensary funding. Whether you need extra cash to refurbish your shop or settle a business emergency, you can easily secure the additional funds you need.
Unlike traditional lending options, getting marijuana dispensary funding with First American Merchant is fast and hassle-free. The application can be completed in just a few minutes, and you can secure your cash in as little as 24 hours. If you have a successful dispensary, have the necessary legal documentation on hand and meet a few other basic requirements, you can get the quick access to the money you need to grow.
With FAM, you also benefit from the support of working with a team that has years of experience in dealing with the challenges of owning and operating a marijuana business. Spend less time worrying about where you can find funds to boost cash flow and more time focusing on expanding your dispensary.