Many banks have withdrawn medicinal marijuana clinics from their merchant account positions owing to regulatory ambiguities. This rash of denial letters from banks is more than a little distressing for company owners who think credit card payment is an important part of their growth. It’s not unusual for a dispensary owner to sign up with a bank just to find out that their services are being discontinued a few weeks later. Cannasseur Pueblo West
All of the problems stem from a single statute, the Bank Secrecy Act. It demands that banks monitor any suspicious behaviour.
The legislation, which was passed to discourage financial misdeeds and alleged jihadist money trafficking, is wreaking havoc on the medical marijuana industry.
When can things start to get better?
This is the crux of the matter for company owners. The medical marijuana industry is quickly expanding, and it needs similar facilities to other industries. This covers the issuance of credit cards.
Recognizing that the legislation is governed by no fewer than five different bodies, legal analysts anticipate that the procedure will take some time. They predict that it would take up to ten years for banks to catch up, with most of that time being affected by more developments in marijuana’s legal status.
What Do I Do Right Now?
The best advice pharmacy owners are receiving right now is to just go somewhere else to stop the banks. Online merchant account companies are more welcoming and able to provide a variety of financial services to dispensary operators. Although any company that sells pharmaceuticals is considered a greater risk than, say, a shoe shop, an account that allows you to process credit and debit cards for your clients can be obtained.