DAYTON – Roughly 120 dispensaries in Ohio have received state licenses to sell recreational marijuana, but banking remains an obstacle for cannabis businesses because marijuana remains illegal under federal law.
“Financial institutions are nervous about working with marijuana companies because of the federal regulations,” said Heather Trela, Rockefeller Institute of Government director of operations and cannabis policy expert. “Dispensaries don’t have the same access to financial institutions that other organizations have.”
In the Dayton area, dozens of dispensaries began selling cannabis to recreational customers this month. As the industry continues to grow in the region, area cannabis businesses are looking toward new ways to collect payments from their customers.
Beavercreek-based Wright-Patt Credit Union in 2018 confirmed plans to offer “limited banking services” to legally licensed medical marijuana businesses and as of April 2022 claimed to have the largest marijuana-related business market share in Ohio.
WPCU officials did not return calls for comment on whether they intend to operate in the recreational market.
The credit union website says they consulted with state agencies and elected officials before operating in the medical cannabis market.
“Without banking services, these businesses would be forced to operate on an all-cash basis, which can result in community safety issues and criminal activity,” the WPCU website says.
“In addition, WPCU believes that legally operating businesses in Ohio have a right to banking services. With an emphasis on the safety of members and the communities the credit union serves, WPCU believes a responsibly banked industry is a safer industry.”
New Line Processing, a New York-based company, has just come into Michigan and now Ohio to offer cannabis customers lines of credit of up to $800 that can are tied to digital wallets on smart phones and used to buy cannabis.
Since a tribal bank is backing the financial instrument, it can not be cancelled like Mastercard and Visa that don’t allow cannabis transactions. It also is free for consumers to use, while the dispensary pays only 3 percent service fee. Studies show that allowing credit card purchases can increase sales by 25 percent or more, Dan Abadir, CEO of New Link Processing, said in the interview.
Abadir provides all the details in this video interview with Mike Brennan from Four20Post and Matt Roush, a former business writer who now works for Lawrence Technological University.
You also can check the company out at www.newline processing.com
