Cannabis Business Banking in Virginia
- Virginia Cannabis
- Cannabis Business in VA
- Cannabis Business Banking in Virginia
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Key Points
- Federal Restrictions: Cannabis remains a Schedule I substance at the federal level, discouraging banks from serving cannabis businesses despite Virginia's legal framework.
- Safety and Security Risks: Lack of banking forces reliance on cash, increasing risks of theft and crime. Banking provides secure financial solutions, reducing these dangers.
Why Is Banking Such a Headache for Cannabis Businesses in Virginia?
Cannabis businesses face real hurdles in Virginia when it comes to traditional banking, thanks to federal restrictions. Virginia State Corporation Commission's Bureau of Financial Institutions, which works like a Department of Banking, oversees state-chartered banks. The catch? Cannabis is still a Schedule I substance at the federal level, which makes banks reluctant to get involved. To make things even trickier, the Attorney General hasn’t offered clear guidance on how to navigate this situation. As a result, financial institutions are left to figure out how to balance state cannabis laws with federal restrictions, creating a lot of uncertainty for everyone involved.
| Banks, Credit Unions, and Fintechs that offer banking services to Cannabis, CBD, and Hemp Businesses in VA | Type of Financial Institution |
|---|---|
| Amalgamated Bank | Bank |
| Chase (CBD Only) | Bank |
| First Citizens Bank | Bank |
| First National Bank of Pasco | Bank |
| FVC Bank | Bank |
| Green Check | FINTECH |
| Herring Bank | Bank |
| Safe Harbor Financial | FINTECH |
| Shore United Bank | Bank |
- Are you a Virginia-licensed financial institution providing banking services to cannabis-related businesses? Request to be listed .
Contact a Banker To Discuss Your Business Needs
Reach out with any questions!Payment Processing in Virginia
| Aspect | Medical Cannabis Dispensaries | CBD Shops | Hemp Shops |
|---|---|---|---|
| Payment Challenges | Federal restrictions prevent use of major credit cards; categorized as high-risk by banks. | Often classified as high-risk, despite legal status under federal and state law. | Similar challenges to CBD shops; classified as high-risk even if compliant with federal limits. |
| Accepted Payment Methods | Cash, cashless ATMs, point-of-banking debit transactions. | Debit and credit cards (via specialized processors), cash. | Debit and credit cards (via specialized processors), cash. |
Why Cannabis Banking Matters in Virginia
Safety and Security: Limited banking access forces cannabis businesses to rely on cash, increasing theft and crime risks. Banking services enhance safety by allowing secure deposits.
Regulatory Compliance: Banks help ensure adherence to Virginia’s strict cannabis laws, such as seed-to-sale tracking, by providing insights into financial activities and reducing illicit practices.
Economic Growth: Banking access enables better financial management, including electronic payments, loans, and payroll, fostering industry growth and contributing to job creation and tax revenue.
Social Equity: Banking services support social equity programs by providing resources to entrepreneurs affected by past drug policies, promoting industry inclusivity.