If there is one business on our aspiration list for offering e-commerce merchant accounts, it is definitely the marijuana industry. At present we have solutions for all things regarding hemp and CBD. We wish to have a solution for medical marijuana in a matter of days). But payment processing for the cannabis industry has evaded payment service providers.

We keep seeing the glow of hope, however.

Newly, a Massachusetts credit union announced in a Boston Globe news article that it was inclined to provide marijuana merchants banking services initiating in October. Many U.S. banks have also announced such, only to confront roadblocks, such as the federal reserve.

The credit union in the matter, however, previously has the support of the Massachusetts Cannabis Control Commission. It is offering with a process called seed-to-sale tracking. It is a software program constructed for cannabis merchants to continue compliance for state laws.

The MCCC also stated it is also in talks with various other Massachusetts banks and credit unions.

The good friends here at Ipaytotal are cautiously monitoring developments, as our home office actually borders the state line among New Hampshire and Massachusetts. It takes us to wonder if Massachusetts could be the ‘litmus test’ of the kind for potential marijuana banking.

We have had a long delay to see which banks would be the first to render banking services for the marijuana industry. We’ve reported about the likelihood of e-commerce merchant accounts for marijuana ad nauseam. Quite certainly, it may be a small credit union (with merely 11 locations) in central Massachusetts.

What is the issue with cash transactions?

As a service provider of e-commerce merchant accounts, we are in favor of credit and debit cards because they keep our company doors wide open. Payments analysts authenticate that hard cash may be on extinction by 2030 in favor of credit cards and mobile payments. However, we believe there will always be a room for cash transactions.

Herein lies the challenge with the cannabis industry:

When an enterprise is collaborating with multiple daily cash deposits of thousands and thousands of dollars, the opportunity of foul play enhancement dramatically.

Money laundering: With cash, money laundering is a bit easier since there is no log trail. For instance, in the United States where recreational marijuana is lawful, cash-only transactions could be able to allow a narcotics dealer to disburse much more effective drugs than marijuana, smoothly working under the disguise of a dispensary.

With credit card processing or an ACH solution, every transaction is authentic and on evidence. There is a money pathway. Figures are exact. The probability of nefarious behavior reduces.


When the initial states began lawful of recreational marijuana, the assertive challenge they encountered was the transportation of the huge amount of cash to banks for deposit. It wasn’t secure then, and it hasn’t changed. Many dispensaries have resorted to hiring armored truck services. They are making two and three retrievals and deliveries each day — a significant expense in itself.

Besides, those marijuana merchants who make just one deposit a day, and are accumulating large amounts of cash all the while, put behind themselves wide open for theft and robbery.

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