If your business supports the cannabis ecosystem—whether you’re packaging, consulting, selling hydroponic supplies, or offering compliance software—you’ve probably encountered the term Marijuana related business merchant accounts. These accounts can feel like a lifeline… and a headache rolled into one. Let’s unpack why.
Why Are Marijuana Related Business Merchant Accounts Labeled “High‑Risk”?
Even when you’re not handling cannabis directly, banks and payment processors view your business as high-risk. That’s because federal law still treats marijuana as a Schedule I substance under the Controlled Substances Act. The result? Ancillary cannabis businesses (MRBs) get lumped in with direct producers and retailers. The issue isn’t what you do—but who you do it for. And that makes a huge difference.
Banks must obey laws like the Bank Secrecy Act and the Money Laundering Control Act. That means they need to conduct enhanced due diligence, file Suspicious Activity Reports (SARs), and implement ongoing monitoring. For MRBs, this translates into higher fees, stricter contract terms, and a revolving door of processor shutdowns if something looks risky—even if your business is fully legal at the state level.
State vs. Federal: The Legal Tension Over Cannabis
You might be operating in one of the 39 states (plus D.C.) that legally regulate cannabis in some form. Still, the disconnect with federal law persists. Even though the House has passed the SAFE Banking Act multiple times, and the Senate Banking Committee approved it in September 2023, a full vote in the Senate is still pending. Until then, the threat remains: banks offering services to cannabis‑related businesses could be prosecuted or fined.
That fear translates to conservative underwriting from banks and processors. Most simply avoid the category altogether, leaving MRBs in a precarious position, scrambling for solutions.
The MRB Payment Processing Puzzle: Cash‑Only Doesn’t Sort It
Without access to merchant accounts, most MRBs are forced to operate cash-heavy businesses. That introduces several frustrating and inefficient issues:
- Safety Risks
Handling large volumes of cash exposes staff and property to theft—or worse. - Lack of Financial Visibility
Tracking sales, reconciling books, and preparing for taxes becomes a manual nightmare. - Stunted Growth
Cash-only operations aren’t scalable. You limit your customer base, miss B2B opportunities, and create friction with vendors and partners. - Customer Churn
Modern consumers expect the convenience and security of cardless or digital payments. Not offering them can mean losing market share.
Because of the regulatory grey areas between state and federal laws businesses that benefit from the proceeds of the cannabis industry fall under the same scrutiny as plant touching businesses. These businesses are seen to facilitate an illicit industry which requires merchant services and banking services to maintain strict compliance and reporting protocols. This leads to most financial institutions and payment processors not supporting ancillary cannabis merchants, forcing them into working with processors that charge high rates and often lack service and knowledge these businesses need to thrive.
Enter the SAFER Banking Act (and a Possible Turning Point for Marijuana Related Business Merchant Accounts)
A glimmer of hope lies in the Safe And Fair Enforcement Regulation (SAFER) Banking Act, currently making its way through Congress. If it becomes law, it would provide “safe harbor” protections for banks, insurers, and processors working with state-legal cannabis businesses—including ancillary roles like yours. americanbar.org It could finally shift the landscape by:
- Allowing businesses to use credit/debit cards and electronic payments.
- Removing federal prosecution fears for compliant banks.
- Applying safe-harbor to payment processing, lending, insurance, and mortgages
But importantly, it won’t mandate banks to engage—they can opt in or out. Still, it may open the floodgates to more mainstream payment services if passed.
While this could be a big step forward for the industry, it is important to note that cannabis and cannabis related businesses will still fall into the High Risk category for banking and payment processing meaning higher than average fees and more robust underwriting and compliance requirements.
What MRBs Need in a Merchant Account Right Now
While Congress debates, you still need reliable payment solutions. Here’s what MRBs should look for in a provider:
- Deep compliance chops: Strict KYC/KYCC, state-license verification, proof-of-ownership, and SAR reporting for cannabis revenue streams.
- High-risk underwriting experience: You need wings to fly in a high-stakes environment—and few have them like BIG.
- Alternative payment rails: You want more than just credit cards—ACH/eCheck, PIN debit, cashless ATM, crypto.
- Low fees + no hidden catches: Enough said.
- Robust integrations: That means gateways that mesh with billing, CRM, POS, accounting systems.
- Transparent communication: No getting frozen with no warning or explanation.
Given these criteria, it’s no surprise many ancillary businesses turn to specialists.
How Bankcard International Group (BIG) Delivers with Marijuana Related Business Merchant Accounts
BIG has been operating in the high-risk and cannabis payments arena since 2006. Here’s how they stand out:
US Domestic, Transparent Processing
BIG partners with U.S. acquiring banks—no offshore wallets or smoke-and-mirrors—guaranteeing faster settlements and less compliance risk. Every fee, process, and contingency is laid bare from the start.
Compliance as a Core Value
BIG understands the labyrinth of federal laws, network guidelines, and state mandates. They handle SARs, documentation, and regulatory reporting—all behind the scenes, so you don’t have to.
Alternative Payment Options
Credit cards aren’t always the full solution. That’s why BIG offers:
- ACH/eCheck: Fully compliant for B2B and B2C, with seamless integrations.
- PIN-debit: Legally structured to align with banking and network rules.
- Crypto: Bitcoin and other options for diversified transactional capability.
Merchant Support from Start to Scale
From onboarding to ongoing compliance, BIG’s team provides hands-on guidance and scalable growth strategies. No more being left in the dark. You’ll get responsive help if issues arise—and proactive advice.
Market Recognition
BIG was recognized at the 2024 PBC conference as a “Top Payments Company in cannabis” and widely praised for reliability and low downtime. Clients highlight quick setup, few disruptions, and responsive service teams.
How BIG’s Marijuana Related Merchant Accounts Compare:
Here’s how BIG’s Ancillary Cannabis Merchant Services stack up alongside other providers:
Feature | BIG (Bankcard International Group) | Other Providers (ACH‑only fintech, cashless ATM workarounds) |
Multi‑rail options | ACH, PIN debit, ATM, crypto, credit cards | Often limited to ACH or risky one-rail cashless ATM |
Compliance depth | Full-service, high-risk underwriting | Varies—many lack cannabis-specific vetting |
Onboarding experience | Guided, cannabis‑savvy team | Some rely on FAQ pages or automated ticket systems |
Transparency + fees | Pinpoint clarity, no hidden costs | Fees can spike; hidden rate hikes common |
Network relationships | U.S. acquiring banks, Debit platforms, crypto options | Smaller pools, offshore reliance |
Payment Gateway | Cutting edge high risk payment gateway with broad reaching fraud prevention tools | Basic level payment gateway |
In short, BIG offers a cohesive, future-ready solution for MRBs—while most compete on a single rail or ride compliance close to the edge of legality.
Looking Ahead: Resilience in Change
The industry has forecasted financial shifts for years—but the reality has lagged behind expectations. The SAFER Banking Act offers promise, but it isn’t a panacea. Federal scheduling changes may remove tax burdens (hello, Section 280E), but banks will still weigh compliance risk heavily.
What you can control? Choosing a payment partner built for uncertainty and scale, one with infrastructure to support multiple payment rails, regulatory protections, and transparent processes.
That partner is BIG.
- “Marijuana related business merchant accounts” remain complicated because the federal-state legal mismatch fundamentally alters banking.
- MRBs struggle with high costs, erratic payment solutions, and risky workarounds.
- The SAFER Banking Act could help—but it isn’t here yet and won’t compel service from banks.
- Bankcard International Group (BIG) offers a well-rounded, compliant, U.S.-based payment processing solution tailored to cannabis-related businesses—empowering you to grow without guesswork, uncertainty, or costly disruptions.
So, if you’re tired of cash headaches, compliance surprises, and shutdown threats, the choice is clear:
Go BIG. Let BIG handle the financial complexity—so you can focus on doing what you do best.
Interested in learning more? Contact BIG for a consultation tailored to your ancillary cannabis business needs. Let your cash flow grow, legally, efficiently, and confidently.
