Banking For Marijuana Dispensary | Marijuana Dispensary Merchant Accounts

hawaii-marijuana When it comes to the legal marijuana industry, many people assume it’s a small, struggling group of people. While it’s true that the industry has encountered many obstacles and likely has more to face in the future, you might be surprised to hear that the industry is a lot bigger than you previously believed. For example, if your living in one of the legal marijuana states, it might actually be easier for you to find someone to recommend and sell you cannabis than to find a dental hygienist.

According to Marijuana Business Daily, “Cannabis-related businesses now employ more people than there are dental hygienists and bakers in the United States and will soon surpass the number of telemarketers and pharmacists.”

The Bureau of Labor Statistics revealed that there are 204,000 individuals employed as dental hygienists. As of the beginning of this summer, the marijuana industry has 165,000-235,000 full- and part-time workers. Based on the estimates published in the newly released Marijuana Business Factbook 2017, this employment data includes retailers, wholesale grows, infused products/concentrates companies, testing labs and ancillary firms. Impressive, considering that the marijuana industry has only been operating legitimately for a few years (since 2009).

On July 1^st, Nevada joined the list of states that have legalized recreational marijuana. This makes them the fifth state – among Colorado, Oregon, Washington and Alaska – to open dispensaries to recreational users. California, Maine and Massachusetts also past recreational measures in November, but are still finalizing their rules.

This growth in the cannabis industry is accompanied by the expectation that the industry’s employment will boom as well. Over Fourth of July weekend in Nevada, for example, recreational legalization led to as many as 1,000 customers each day. Estimates from business intelligence firm, New Frontier Data, anticipate that the market for legal weed may create as many as 250,000 new jobs by 2020.

At the moment, the majority of the jobs in the marijuana industry are small businesses. The state-by-state nature of the marijuana industry has prevented many of these businesses from developing into large-scale enterprises that employ hundreds of people. For now, theses small businesses only require a handful of employees to maintain their daily operations.

Even so with the growth of the industry, these businesses struggle to find basic business services, like flexible business funding options and payment processing. With the high-risk categorization of the industry, most traditional providers won’t touch marijuana merchants. This is where alternative providers like Marijuana Merchant Account have stepped in to help. As a high-risk specialist, MMA specializes in providing these merchants with business financing and payment processing solutions.

The hope is that, in time, more and more providers will except cannabis merchants, considering that the industry could explode to $50 billion in the next decade.

For those servicing the new commodity in Colorado and Washington, things are beginning to work out for the better. A long time coming are some banking options that were not available a year ago.

Colorado speed bumps

In Colorado co-ops will be created that are to service accounts specific to the needs of the market with marijuana buyers and growers. Sellers might have a bit of an issue for a time, but all the other elements are falling into place. Marijuana Merchant accounts will be over seen by the state’s financial services commissioner.

Each co-op will do business very similar to that of a credit union, without the requirement of deposit insurance: Thereby, leaving each new business owner without that extra FDIC insurance, through the federal government, in case the institution fails. Deposit insurance is that little extra kick all other consumers get when they deposit money, and it seems a bit out of the ordinary for Colorado to set up these new businesses, with the expectation of failure.

Washington as well

Washington has stepped up the bar a bit further. They are already using well established credit unions through Numerica Credit Union. They don’t want to offer accounts to the recreational stores but will work with the processors and the growers.

On the other hand, they won’t let them have more than five million dollars in any account.

-They won’t let them have debit or credit cards for their accounts.

-They won’t let them deposit any check remotely.

-All deposits must be done in person and they won’t let them deposit in the night deposit.

-Of the 17 branches that Numerica has, the person with the new medical marijuana account, must live in the area in order to even have an account.

And last, but not least……. They won’t let them make deposits or withdraw their own money from other credit unions that are part of the same credit union network.

Progress

Indeed, it is being made….. but at what expense? The person trying to run their new business will have to move to the right county and make any deposits in person. They can’t access their own money but in person and not from other atm machines. Indeed, progress. But is it really?

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Banking progress for Marijuana Merchant Accounts in Colorado and Washington

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