The Cannabis industry never fails to create buzz in the US. Last month, upon sidelining the amendment for banking bills for Cannabis industry, US Senate has rang another bell in the world Cannabis market. This is the second time in a row when the industry has faced such adversity.
According to some of the industry experts, including Forbes, it will trigger crime by not providing a proper banking protection to such huge industry in the US. Making it an all-cash industry which in turn will make it unsafe for the communities across the nation.
The Senate, after casting their votes (21-10), has destroyed the chances of having a protection for the cannabis banking solutions in the industry. This encourages increasing numbers of privately owned financial solutions for cannabis firms and transactions. Due to sidelining the amendment, banks will no longer be protected from the Department of Justice as well. The said department controls the Drug Enforcement Administration as well.
Marijuana business has been socially accepted by large number of nations. However, in absence of the banking solutions, it is becoming difficult for the firms to deal in the same for several purposes. Though, there are a wide number of private merchants that provide marijuana business, however, lack of banking protection is making it tough for the people to work in the business.
Currently, many private vendors offer high-end cannabis payment processing in the US. They include credit card processing, merchant accounts, gift card processing, and debit card processing in dispensaries. These merchants will keep on providing best services for the business while financial instability in the industry will persist until political intervention makes it easier.
Despite the adversity the industry is currently facing with banking solutions many provider claim to have true bank accounts. Although they are providing a virtual way to accept payments and for the merchant to process ACH, leaving the merchants with no way to handle cash payments. The solutions provides a temporary band-aid for E-commerce businesses while missing several marks.
Many Cannabis and CBD retail locations are having to establish bank account that are not compliant and/or are not disclosing the nature of the business. This leaves the merchant with a bank account that is operating today and could potentially be closed tomorrow. Paybotic is preparing to offer Cannabis Banking Solutions to the following states Florida, Massachusetts, Michigan, Southern Colorado, California and Nevada. This will provide compliant banking with the ability to make cash deposits.