US Cannabis Businesses Struggle with Access to Financial Services
Cannabis businesses in the US are facing challenges in accessing financial services due to federal regulations and banking institutions' reluctance to serve them, according to a recent report by the U.S. Government Accountability Office (GAO).
The GAO conducted eight focus groups with cannabis-related business owners and managers representing various sizes and types of companies.
Payment processing was a major concern for these businesses, as most major payment processors refuse to process transactions involving cannabis products.
This forces cannabis companies to handle large volumes of cash, which creates logistical and safety challenges, including the risk of armed robberies and other crimes.
To mitigate these risks, some licensed dispensaries offer 'cashless ATM' transactions, but Mastercard and Visa have issued warnings that these transactions violate their policies.
The GAO report also highlighted the difficulties cannabis-related businesses face in obtaining bank accounts, loans, and payroll services, with many financial institutions citing legal risks as a major concern.