As the nation continues to work on the legality of cannabis, CBD, Delta 8 and other derivative products and have legalized them in many states, there is still a disconnect with the banking system. Even with the Safe Banking Act, the truth and reality is that the banking industry doesn’t understand the industry and many don’t want to. This leaves many cannabis businesses in a hard spot, unable to accept credit cards or secure proper banking relationships.
The Challenges
Limited Access to Merchant Account Services
Depending on what type of cannabis business one has, payment processing solutions are hard to obtain and may come with high fees to accept credit and debit card payments. Unfortunately, there are rumors that the card brands and federal government may target dispensary businesses accepting alternative forms of payment, including debit only solutions.
Limited Access to Traditional Banking
Lets be real. The banking system is a conservative, old school industry. Most banks will not work with the cannabis industry. This limits banking options and creates problems for businesses needing depository accounts, especially where large sums of cash is deposited.
Transporting Cash is Risky and Complicated
For those businesses working with large sums of cash, oftentimes, they must arrange for their own security, transportation and processes. This comes with risk and can become complicated, especially with many traditional banks.
Holding Large Volumes of Cash Increases Risk of Theft
Businesses holding large amounts of cash face a real threat of theft. Managing this risk costs businesses time, money, resources and peace of mind.
The Solution
Fortunately, Cannabis businesses now have an option. That option comes in the form of a Cash Vault where cash can be deposited into a vault and kept secure. Upon set up, a safe is installed at the business location and automatic secure pickups are scheduled. Cash can now be deposited into the business bank account in a secure and reliable process.
The process all begins with depositing cash into the vault. Bills are placed on the interfaced bill counter on the vault in which it is then validated in real time and securely stored inside the vault. The Vault software creates a batch of the cash deposits, totals these batches and credits the cannabis businesses account the next business day. The batch process occurs every night. Now, the business can feel confident, they will receive their cash funds within one business day.
So, what about the cash in the Vault? The intuitive software recognizes when the vault reaches 85% capacity in the vault in cash. The Vault creates and sends an automated notification to a cash pickup service provider. Cash pickups are scheduled weekly, but can be scheduled on demand or when notification is sent. With the advance of Cash, the business no longer needs to be concerned about their cash getting deposited into their bank. The Cash Vault solution fronts the cash so the business doesn’t need to worry.
With all the challenges facing the cannabis industry, cash and payment for products shouldn’t be one of them!
This article was submitted by Ryan Fritzche, owner of Merchant Solutions, a CBD Credit Card Processing company located in Heber City, Utah.
