In a world filled with Venmo, tap-to-pay, and Apple Pay, why does cannabis still feel stuck in the cash era? Let’s dive into the real reasons and explore what’s changing for you and your customers.
It’s tempting to think this “cash-only” trend is about reluctance to embrace new tech. But the issue runs much deeper. The real snag is that cannabis, despite being legal in many states, remains federally restricted. While it’s expected to move from Schedule I to Schedule III, the rules and implications of that change are still unclear. In the meantime, federal agencies—the ones that ultimately govern banking and financial services—haven’t fully caught up. So even if your state has rolled out the welcome mat for dispensaries, federal regulations continue to create uncertainty and complexity for cannabis businesses. Banks can face huge penalties for knowingly working with cannabis businesses. Think money laundering charges or losing their banking license entirely. Not surprising that most banks hit pause on the whole ordeal, leaving you reliant on cash more than you’d probably like.
Put plainly, Federal law is a wall most retailers keep running into. Banking giants simply won’t take the risk, so direct deposits or traditional credit card processing are out of the question. You’re left juggling cash, security, and logistics like it’s the early 2000s. For a peek behind the scenes, don’t miss Cova’s breakdown of cannabis banking realities.
Thankfully, the cannabis industry doesn’t just sit still. You’re seeing a surge in new payment options that sidestep old limitations while making life easier for you and your team. Here’s the scoop on what’s trending now:
We’ve even heard of folks experimenting with crypto or newfangled gift card programs, but those are still on the fringe for most shops.
Banks aren’t the only ones taking on risks. When you deal with piles of cash, you’re opening your doors to greater security threats. More cash means more to protect. Here are common challenges that cannabis retailers like you face:
Even states that tried to set up their own cannabis-friendly banks have hit roadblocks, keeping most retailers cut off from mainstream financial tools.
From a customer’s point of view, "cash only" means a pit stop at the ATM and maybe some grumbling about fees. Many regulars would gladly pay a little extra for a quicker, hassle-free checkout. As you beef up payment options with digital transfers and card-based workarounds, you’re meeting shoppers where they’re at - but keep in mind: they’ll notice those convenience fees, so be up front about them.
There’s a light at the end of this tunnel. The SAFE Banking Act has made some progress in Congress. If lawmakers finally give it the green light, you’ll see banks lining up to work with the cannabis industry. That would open the door to credit cards, business loans, and seamless payment solutions. Until that day comes, it’s about picking the smartest workaround and keeping your business growing. Curious exactly how federal reform might impact cannabis banking? Get the details on our SAFE Banking Act explainer.
At Cova, we get that you want to focus on helping customers, not micromanaging cash. That’s why our POS and payments platform, Cova Pay, is built to handle every compliance curveball. With support for ACH, PIN debit, and Cashless ATM, plus airtight reporting, we’re here to help you move toward cashless - headache free. Want advice tailored to your store’s situation? Chat with our experts here. You’ll find a friendly team who’s seen it all.
At the end of the day, “cash only” isn’t stubbornness - it’s the result of a tangled web of regulations. But there’s good news: smarter payment choices are emerging, and more will come with future reforms. Whether you’re just starting or eyeing expansion, align with the right partners and tools to smooth payment processing and keep your customers happy. Curious about cashless options or want to dodge your next cash-counting headache? Connect with Cova today. Let’s get your dispensary ready for what’s next.