Cannabis dispensaries in states where the drug is legal face a unique problem. Their businesses essentially violate federal laws even if they follow state laws. This can present a host of problems, including how to manage funds. Major banks may deny cannabis dispensaries bank account privileges, but the money the businesses earn must still be deposited somewhere. Fortunately, there are a few solutions dispensaries can use to solve their banking needs.

1. Small Local Banks

Small local banks situated in the state where the dispensaries do business sometimes offer options for opening a bank account. As of 2016, there were 311 banks and credit unions in the U.S. that offered banking services to the cannabis industry. Seeking a local bank or credit union can not only help handle cash transactions, but it can also make it possible for dispensaries to accept credit and debit card payments easily. For business owners who prefer not to do all of their banking online, this can be a great option.

2. Online Merchant Accounts

Many online merchant account companies offer cannabis dispensaries a way to process checks and credit card applications. This can help transform a business from all-cash to a more easily manageable mix of payment options for customers. This option also means that dispensary owners don't need to worry about handling large amounts of cash for a deposit at a physical bank. Some online merchant accounts also allow dispensaries to pay bills and access money for expenditures, providing more of a full-service banking option without needing access to a physical location.

3. Safety Deposit Boxes

For dispensaries that are unable or unwilling to open a traditional bank account, safety deposit boxes can offer a partial solution to banking issues. With money securely held at an off-site location, owners can be more confident their assets are protected. With this option, you can also purchase money orders from the bank to pay vendors. Remember that this option does not come with the FDIC protection that comes with bank accounts. If someone breaks into the bank and can access the deposit boxes, you will lose the money held inside.

It's a good idea to engage the services of an accountant and an attorney to make sure you are following state laws as you manage your money. This can help prevent problems further down the road while also helping to ensure the future success of your business.

For more information on opening a cannabis merchant account, contact your local dispensary today!