Cannabis Banking: Can Dispensaries Use Banks for Cannabis Banking?


Cannabis company banking is a subject that is rife with myth and disinformation. You will discover all the information you want about banking for a legal cannabis business in this article, including the necessity for a bank account, where to locate banks that participate, and how to open your first account.

The industry is underbanked, but not unbanked, claims Dan Roda, CEO of Abaca. Despite the fact that serving the cannabis sector is permitted by the federal government, many blame this on the fact that cannabis is banned at the federal level.

The federal government treats cannabis in the same way as other high-risk sectors like adult entertainment, gambling, and guns.

Why do Cannabis Businesses Require a Bank Account

The advantages of banking are obvious, but not having a bank account for a cannabis dispensary carries a significant risk as well.


Because marijuana shops handle huge sums of money on-site, they are a target for thieves. This puts at danger not only the business owner, but also the establishment’s resources, personnel, and reputation.


To protect their assets, goods, and cash reserves, dispensary operators must erect more robust security systems and hire guards. The time spent counting, logging, packaging, storing, and delivering the paper money should also be considered.


Banking enables speedier payments and withdrawals than cash. With electronic banking comes operational efficiency. This will help make your bookkeeping and accounting considerably more organized, which is good for compliance, tax, and legal purposes.

Accept non-cash payments

In order to use a point of the banking system, you need a bank account at a financial institution that enables you to accept ACH payments.

Future preparation

You’ll need to be able to demonstrate your company’s profitability in order to obtain financing, attract investors, or sell your organization. It’s challenging to demonstrate when you operate in cash.

How to Set Up a Dispensary Bank Account

Talk to each local bank on your shortlist once you get it. Include the following actions in your vetting procedure.

  • Tell the bank right away that you are a legal marijuana business and ask if they would be willing to help.
  • Analyze them based on how well they interact with customers.
  • Check the small print. Check to see if your account has any deposit or holding limits or capacity restrictions.
  • Think about the price. Dunford advises against giving in to the need to concentrate on the monthly account maintenance expenses. Consider the extra charges for wires, payroll, checks, debit cards, online banking access, and other things that could quickly pile up.

Determine Signatories

Decide who will be your bank signatories and compile your business’s legal documents, such as an operating agreement or bylaws that establish ownership. Additionally, you need have a certificate of good standing and be able to prove your sources of business funding. What further documentation you’ll need to give will be specified by your bank. Your bank might need to physically inspect the site. There is no need for concern because this is usual.

Proof of Legal Sales

Financial service companies are required to follow anti-money laundering laws. This means that you will need to be able to prove that every dollar entering your account is the result of a state-legal sale. You can do this by using POS reports to show that customers were sold within the purchase limit, that they were of legal age, and that your overall sales were comparable to those of your rivals. Also, you need to be open and sincere with your bank at all times.


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