Ask anyone in the cannabis industry what it is like to be in the industry in comparison to other fields of business, and they will probably tell you that the cannabis business is a lot like every other business model. The only difference is there can be a lot of extra challenges that you would not normally have to deal with, and one of those problems will be finding a business banking account. Because cannabis is still illegal federally and considered a risky venture industrially, a lot of financial institutions still don't want anything to do with the business.
So how do you go about finding a cannabis merchant account? Here are a few things you should know if you are facing challenges with finding an account as someone in the cannabis industry.
There are international account options, but these can pose challenges.
Many business owners in the cannabis industry will turn to off-shore or international merchants or banking institutions in order to get the backing they need, which can definitely work. Because the laws about cannabis are different outside of the United States, some of these companies are more willing to get involved. While this can sound like a logical solution to your merchant account needs, off-shore accounts can also pose problems.
If you do go with international merchant accounts, you might sometimes have to register as a business entity in the country where the institution is located. This can create a lot of complexity during certain business processes, such as when you file your business taxes at the end of the year.
Domestic merchant accounts are getting easier to find.
While cannabis is still in its infancy stages as an area of business, great strides are being taken across the board to make it more possible for people in this business to follow regular business practices. This includes the availability of domestic payment processors and banking institutions that are willing to jump on and take on these clients.
Some local institutions start out by backing business owners in the CBD industry, the hemp industry, or other marijuana-derived industries, but do eventually work their way into the full-on cannabis field. The available options may be few and far between, but this is fully expected to change as the laws surrounding cannabis grow more relaxed through the years. Therefore, even if you are having issues with gaining a merchant account now, that will not always be the case.
To learn more about your options, contact a company like CBD Merchant Account.Share