Ohio’s recreational marijuana market is growing, with over 120 dispensaries licensed to sell cannabis. However, the industry still faces a significant obstacle: banking. Since marijuana is illegal under federal law, financial institutions are hesitant to work with cannabis businesses, making it difficult for dispensaries to access traditional banking services.
Wright-Patt Credit Union, a Beavercreek-based institution, was one of the first to offer limited banking services to medical marijuana businesses in 2018. While the credit union’s website emphasizes the importance of safely banking the cannabis industry, officials have not commented on whether they plan to expand their services to the recreational market.
The lack of banking services forces many dispensaries to operate on an all-cash basis, which can lead to community safety issues and criminal activity. To work around this issue, some dispensaries have turned to creative solutions, such as using apps to complete sales or establishing systems for customers to deposit cash and receive store credit.
Ohio state lawmakers have taken steps to address the issue, passing a law in 2016 that allows banks, credit unions, and other financial institutions to work with licensed medical marijuana businesses. However, federal law remains a significant hurdle, and many financial institutions are hesitant to provide services to the cannabis industry.
The SAFER Banking Act, which has passed in the House but stalled in the Senate, aims to address this issue by allowing banks to provide financial services to the cannabis industry. Until then, dispensaries will continue to find ways to adapt to the challenges of operating in a cash-only environment.
In recent years, debit cards and payment processors have become more widely accepted in the cannabis industry, allowing dispensaries to reduce their reliance on cash. Some dispensaries have also established relationships with state-chartered and regional banks to facilitate transactions.
As the recreational marijuana market continues to grow in Ohio, it is likely that dispensaries will continue to find innovative ways to navigate the challenges of banking and payment processing.
