Cannabis is still a new and interesting business that states and countries are struggling to legislate. Businesses that sell cannabis straddle the line between legal and illegal entities. There are laws unique to them, and there are laws that affect their whole supply chain.
Working in the cannabis market is a challenge for any aspiring business owner, and it can hurt the market's growth. Most of all, it can be hard for cannabis companies to meet basic operating requirements, like opening a merchant account. Without a merchant account, it can be hard for companies to collect money, save it, and use it to purchase products.
Yet, it's not impossible for cannabis companies to open merchant accounts. Keep reading below to learn how cannabis companies can open one, and why it's so important!
Cannabis Companies Are in a Legal Gray Area
Cannabis companies aren't treated the same way as other companies. Since their products are still illegal in several states, it's harder for them to grow. They need to be more careful about who they sell to and how they operate, or else they may be fined for violating market-specific laws.
The most important part of starting a cannabis company is to have a plan in place. You need to have a marketing and business plan before you take the first steps. Even trivial details, like where you will store your money, must be considered.
You need to select a specific business that will work with your company to give you credit. If you can't do something as basic as process customers' credit cards, they won't shop with you. And as a result, your company may go under before it even starts growing.
New Laws Are Being Passed to Help Companies
State governments, and even the federal government, are beginning to understand that cannabis is a legitimate industry. They're warming up to the idea of integrating it into law and making it easier to run a cannabis company. For example, the SAFE Banking Act will make banking as a cannabis company safer and easier.
The Secure and Fair Enforcement Banking Act is a bill that is trying to protect the entities that handle cannabis companies' money. Right now, many banks avoid cannabis companies because there is a higher chance they may accidentally get in trouble. With the SAFE Act, they'll be protected and will be more open to working with cannabis companies and to opening merchant accounts with them.
Take Your Cannabis Company to New Heights
Opening a merchant account is a basic part of operating any kind of business, cannabis companies included. Without one, you won't be able to process your customers' credit card transactions. And without that, you will lose out on a large amount of business.
But with a merchant account, you will be able to take your company higher than ever before and lead your local cannabis market. You'll attract more customers, be able to handle more money, and grow your business. Contact us if you're ready to open a merchant account and become a part of a new, exciting industry!