As of this writing in 2024, the legal landscape for cannabis in the United States continues to evolve, with a growing number of states allowing its use in various forms. Brother Processing has provided POS and debit card processing in several cannabis-legal states. Here’s a brief overview of states where cannabis is legal:

  1. Recreational and Medical Use:

    Find Cannabis Merchant Services in the United States

    Cannabis Merchant Services in the USA

    • California
    • Colorado
    • Washington
    • Oregon
    • Nevada
    • Alaska
    • Massachusetts
    • Maine
    • Michigan
    • Illinois
    • Vermont
    • Arizona
    • Montana
    • New Jersey
    • New York
    • New Mexico
    • Virginia
    • Connecticut
    • Rhode Island
    • Maryland

  2. Medical Use Only:

    • Many other states allow cannabis for medical purposes, including Florida, Ohio, Pennsylvania, and more. Each state has its own specific regulations and qualifying conditions for medical cannabis use.

USA Cannabis Banking Environment

The cannabis industry’s banking environment remains complex and challenging due to federal restrictions. Although cannabis is legal in many states, it is still classified as a Schedule I controlled substance at the federal level, which creates significant hurdles for financial institutions. Here are some key points about the banking environment in states with legalized cannabis:

  1. Limited Access to Banking Services:

    • Many banks are hesitant to work with cannabis businesses due to federal regulations, which can lead to penalties or loss of federal deposit insurance. As a result, many cannabis businesses operate on a cash-only basis, increasing security risks and logistical challenges. BPS works directly with several regional banks that work closely with cannabis companies in states where it is legalized.

  2. State-level Solutions:

    • Some states have implemented measures to facilitate banking for cannabis businesses. For example, California and Colorado have explored state-chartered banks or credit unions dedicated to serving the cannabis industry. These financial institutions are less exposed to federal regulations and can offer services to cannabis-related businesses.

  3. The SAFE Banking Act:

    • The Secure and Fair Enforcement (SAFE) Banking Act aims to protect financial institutions that provide services to state-legal cannabis businesses. Although it has seen progress in Congress, it has yet to be enacted into law. The act would provide a legal safe harbor for banks and credit unions, encouraging them to offer services to the cannabis industry without fear of federal repercussions.

  4. Innovative Financial Solutions:

    • Some cannabis businesses are turning to fintech companies and cryptocurrency as alternative solutions for financial transactions and cash management. These technologies offer more flexibility and reduced regulatory burden compared to traditional banking. BPS has working relationships with a number of cannabis-friendly regional banks who offer cashless ATMs and debit card processing for cannabis businesses.

Brother Processing Working with New Dispensaries

Efforts at the state level and potential federal legislative changes could provide much-needed relief and stability for cannabis businesses seeking reliable financial services. Here at Brother Processing Solutions, we have helped over 50 different dispensaries set up card processing in their newly legal recreational state. More payment options for customers means a higher ticket per sale.

Learn more about BPS and our Cannabis Merchant Services in the United States.