Access to federal banks would be a massive victory for marijuana dispensaries and marijuana-related businesses.

The marijuana industry is rapidly growing, and with that growth comes the need for marijuana banking and payment processing solutions. Until now, the marijuana industry has been largely cash-based because federally insured banks are not allowed to do business with marijuana dispensaries. This has created many problems for businesses in the industry, as they have to find ways to store and transport large amounts of cash. But things may be about to change. According to Senate Majority Leader Chuck Schumer, Congress is “very close” to passing a bill that would provide banking access for legally registered marijuana businesses. This would be a massive victory for the marijuana industry, providing much-needed capabilities to companies and access to federally regulated and insured banks.

Having a bank account is one thing, but it would also mean that dispensaries could accept credit and debit card payments like any other retail business. This would be a game-changer for the industry, as it would make it much easier for companies to operate and for customers to purchase their products. The bill, known as the SAFE Banking Act, is sponsored by Rep. Ed Perlmutter (D-CO) in the House, who has been in communication with Senate Majority Leader Chuck Schumer about the need to have bipartisan reform to get the bill passed by Congress. Senator Schumer told Rep. Perlmutter that the Senate Chamber is “working on it.”

This is good news for the marijuana industry, as it appears there is bipartisan support for reform. The bill has already passed the house. However, it will still need to be approved by the Senate and signed off on by President Biden before it can become law. But if it does pass, it would be a huge victory for the marijuana industry and would provide much-needed banking and payment processing solutions.

The marijuana industry is growing at an unprecedented rate, and with that growth comes a need for banking and financial services. Until now, the marijuana industry has been largely cash-based because federally insured banks are not allowed to do business with marijuana dispensaries. Some dispensaries have resolved to use cashless ATMs, but the risks of cashless ATMs for dispensaries are very high because it is illegal, and if cashless ATMs become the next target of federal enforcement, as some believe, the consequences would be catastrophic for dispensaries using cashless ATMs.

A person enters their pin number to complete a debit card purchase at a marijuana dispensary.

While marijuana dispensaries and other marijuana-related businesses anxiously wait in hopes that the SAFE Banking Act is passed by Congress and signed off by President Biden, there is some good news. Recently, Unity Payments, a payment processing company specializing in high-risk industries, has begun to offer a PIN debit program supported by all major debit payment networks, including Star, Accel, NYCE, among others. It’s a fully compliant and transparent payment processing solution for dispensaries and marijuana-related businesses that allows customers to complete purchases using a debit card the same way they would buy groceries at a supermarket.

While dispensaries and marijuana-related businesses are waiting for the SAFE Banking Act to pass, they can strategically position themselves to immediately accept credit card payments once the law passes by using the PIN debit program in the meantime. This not only provides a fully legal way to accept debit cards for payments for cannabis and cannabis-related products, it also provides lower fees than Cashless ATMs in a risk-free, safe, and secure manner. Plus, because it’s not a workaround like Cashless ATMs, using a PIN debit program helps reduce or even eliminate chargebacks and avoid legal woes.

The bottom line is that the SAFE Banking Act would be a huge win for the marijuana industry, and it’s something for which businesses should be prepared. By using a PIN debit program in the meantime, marijuana businesses can provide a safe, secure, and compliant way for customers to purchase their products using a debit card. And when the SAFE Banking Act does eventually pass, these businesses will be able to seamlessly transition to using federally regulated and insured banks without any disruptions.