MENUMENU
  • Home
  • By Region
        • Northwest
          • Alaska
          • Oregon
          • Hawaii
          • Washington
        • Southwest
          • Arizona
          • California
          • Colorado
          • Nevada
        • Central
          • Illinois
          • Oklahoma
          • Michigan
          • Minnesota
        • Northeast
          • Maine
          • Massachusetts
          • New Jersey
          • New York
          • Pennsylvania
        • Southeast
          • DC
          • Florida
          • Louisiana
          • Virginia
        • United States
        • Canada
        • Europe
        • Latin America
        • Asia & Oceania
  • By Topic
        • Business
          • Investing & Finance
          • Laws & Regulations
          • Real Estate
        • Manufacturing
          • Edibles & Infused Products
          • Extraction
          • Packaging & Labeling
        • Cultivation
          • Farming
          • Wholesale Pricing
        • Science
          • Coronavirus
          • Labs & Testing
          • Vaping Crisis
        • Hemp Industry News
        • Technology
        • Retail
        • National Legal News
  • Events
        • MJBizCon 2021
          • MJBizCon
  • Resources
        • Reports
          • All Reports and Resources
          • From the Roots Up: A Guide for Cannabis Cultivators
          • The Hemp & CBD Industry Factbook 2021 Edition
          • Cowen Reports: Industry Data for Investors and Business Leaders
          • Best Practices in Extraction Report 2020
          • California Licensing Guidebook Report
          • Cannabis 101: Cultivation Report
          • Cannabis in Latin America: The Regulations and Opportunities (2nd Edition)
          • Medical Cannabis in Europe: The Markets and Opportunities (2nd Edition)
          • Cultivation Snapshot 2020
          • California Marijuana Notebook
          • Best Practices in Cannabis Cultivation
        • Factbooks
          • 2021 Marijuana Business Factbook
          • The Hemp & CBD Industry Factbook 2021 Edition
        • Other Tools
          • Germany Medical Flower Pricing Calculator
          • COVID-19 Scenario Planning Calculator
          • Crisis Management in Cannabis
        • Webinars
          • All Webinars
          • 280E: The Tax Man’s Marijuana Secrets
          • Spring Science Webinars
          • Webinar Series: Regulations and Opportunities in Key Latin American Markets
        • Industry Directory
  • Data
  • MJBiz Magazine
  • News Releases
  • About
        • The Company
          • About Us
          • Speaker For Your Event or Podcast
          • Press Room
          • Contact Us
        • Work With Us
          • Advertise With Us
          • Partner With Us
          • Careers
Select your Edition: U.S. | International | Hemp Industry
Subscribe to Our Newsletter »
MENUMENU
  • Home
  • By Region
        • Northwest
          • Alaska
          • Oregon
          • Hawaii
          • Washington
        • Southwest
          • Arizona
          • California
          • Colorado
          • Nevada
        • Central
          • Illinois
          • Oklahoma
          • Michigan
          • Minnesota
        • Northeast
          • Maine
          • Massachusetts
          • New Jersey
          • New York
          • Pennsylvania
        • Southeast
          • DC
          • Florida
          • Louisiana
          • Virginia
        • United States
        • Canada
        • Europe
        • Latin America
        • Asia & Oceania
  • By Topic
        • Business
          • Investing & Finance
          • Laws & Regulations
          • Real Estate
        • Manufacturing
          • Edibles & Infused Products
          • Extraction
          • Packaging & Labeling
        • Cultivation
          • Farming
          • Wholesale Pricing
        • Science
          • Coronavirus
          • Labs & Testing
          • Vaping Crisis
        • Hemp Industry News
        • Technology
        • Retail
        • National Legal News
  • Events
        • MJBizCon 2021
          • MJBizCon
  • Resources
        • Reports
          • All Reports and Resources
          • From the Roots Up: A Guide for Cannabis Cultivators
          • The Hemp & CBD Industry Factbook 2021 Edition
          • Cowen Reports: Industry Data for Investors and Business Leaders
          • Best Practices in Extraction Report 2020
          • California Licensing Guidebook Report
          • Cannabis 101: Cultivation Report
          • Cannabis in Latin America: The Regulations and Opportunities (2nd Edition)
          • Medical Cannabis in Europe: The Markets and Opportunities (2nd Edition)
          • Cultivation Snapshot 2020
          • California Marijuana Notebook
          • Best Practices in Cannabis Cultivation
        • Factbooks
          • 2021 Marijuana Business Factbook
          • The Hemp & CBD Industry Factbook 2021 Edition
        • Other Tools
          • Germany Medical Flower Pricing Calculator
          • COVID-19 Scenario Planning Calculator
          • Crisis Management in Cannabis
        • Webinars
          • All Webinars
          • 280E: The Tax Man’s Marijuana Secrets
          • Spring Science Webinars
          • Webinar Series: Regulations and Opportunities in Key Latin American Markets
        • Industry Directory
  • Data
  • MJBiz Magazine
  • News Releases
  • About
        • The Company
          • About Us
          • Speaker For Your Event or Podcast
          • Press Room
          • Contact Us
        • Work With Us
          • Advertise With Us
          • Partner With Us
          • Careers
  • Menu

Chris Walsh: Bank Pullout Will Lead to More Robberies, Deception and Consolidation

Published August 25, 2011

, Chris Walsh: Bank Pullout Will Lead to More Robberies, Deception and Consolidation
By Chris Walsh

On Tuesday, we wrote that CSSB Savings Bank in Colorado Springs is severing ties with medical marijuana dispensaries in late September. The unexpected move has sent shockwaves through the state’s MMJ community, as CSSB was the last financial institution in Colorado to actively court dispensaries.

But perhaps it shouldn’t have been surprising given that banks across the country are stepping away from the industry, which is becoming a major issue for the entire sector.

I touched on the repercussions in my last post, but now I’d like to take a closer look at what all of this means for medical marijuana dispensaries across the nation. Here are some of the effects this trend could have on dispensary owners, customers and vendors:

– Higher robbery risk: If dispensaries don’t have bank accounts, they won’t be able to easily and safely move money around. That means they’ll constantly have a bunch of cash in the store. This makes them an even bigger target for robberies. You can easily see how an MMC that does, say, $4,000 in revenue each day will become a big target for robbers. Even if a lot of that cash is constantly going out the door to pay bills, a dispensary could have a large chunk of dough sitting around at any one time.

– Fewer payment options: Banks have been cutting dispensaries off from merchant accounts, and American Express no longer accepts transactions from medical marijuana clinics. So it’s getting harder for dispensaries to accept credit cards. This represents a major inconvenience to both MMCs and customers.

– New complications: Ever tried to manage $1,000 in cash in different denominations? How about $5,000, or $10,000? This will present major complications for businesses in a variety of areas, from paying salaries to keeping track of all the money coming in.

– Deception: Some dispensary owners are opening business accounts under false pretense, either misleading or outright lying to banks about the nature of their businesses. Expect this to increase in the future, which will undermine the credibility of the industry.

– Forced consolidation: If more banks move in this direction, it will essentially put a stranglehold on the industry and force centers to go out of business. While consolidation might actually be good in states like Colorado, where competition is brutal, some strong players will likely fall as well. As I mentioned in the post earlier this week, some observers even think that this could bring about the end of the medical marijuana industry as we know it in many states.

Someone in the financial world needs to step up to the plate. And quickly.

Chris Walsh is the editor of Medical Marijuana Business Daily

 

Related Stories

Dispensary Owners Face New Challenges as Bank Cuts Ties With MMCs
Want To Better Serve Medical Pot Patients? Urge Them To Fill Out Our Questionnaire
Ohio Group to Press on With Medical Marijuana Legalization Efforts
Colorado Medical Cannabis Business & Marijuana Legal News Colorado Medical Cannabis Business & Marijuana Legal News National Medical Cannabis Business & Marijuana Legal News
3 comments on “Chris Walsh: Bank Pullout Will Lead to More Robberies, Deception and Consolidation”
  1. Robert Frichtel on August 25th, 2011 - 9:31pm

    Another major impact will payment submittals to State and Federal tax authories.

    Many taxing authorities will only accept payment for taxes due in electronic form either an ACH transfer or direct deposit payment.Payment by check or cash or money order may not even be an option. What’s a business owner to do in this situation?

    Reply
    • ChrisWalsh on August 26th, 2011 - 5:34pm

      Hi Robert. Great point. I’m not sure how this will play out re: taxes. I’ll look into it and see if I can find out anything. Given that it’s the IRS, I imagine they will certainly find a way to get that money!

      Reply
  2. Sherri on September 12th, 2011 - 6:37am

    This is insanity. Is there any way to create a locally funded citizens credit union?

    Reply
Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

MJBizCon2021

Save the Date:

The 10th annual MJBizCon will be held live in Las Vegas + online:

  • Week of October 18, 2021
  • Expo October 20-22, 2021

MJBizCon is the #1 trade show for cannabis professionals. Sign up for free show alerts:

Your privacy is assured.
Company News
  • BlueOx Credit Union partners with Safe Harbor Financial to bring cannabis banking to Michigan
    April 13, 2021
    Oregon CBD releases the first federally compliant CBDV rich cultivars to the US hemp market
    April 10, 2021
    Green Life Business Group announces “The Bar has been Set, State of The Art Cultivation Facility” For SALE 109M
    March 24, 2021
    M.J. Hall & Company introduces the first admitted cannabis product in Arizona
    March 8, 2021
  • “Pre-Roll Experts” offer new, high-capacity grinder for the hemp industry
    March 4, 2021
    Minority owned cannabis company, TheraTrue Inc., announces new CEO Victor Mancebo, $50 million in funding, and applies in Georgia and Virginia
    February 25, 2021
    Vicaa launches website offering range of high quality growing media for medical cannabis
    February 24, 2021
    Sundie Seefried chooses to end career as CEO of Partner Colorado to lead new cannabis company
    February 11, 2021
  • Custom Cone USA now hosts largest selection of pre-roll equipment and products in the world
    February 5, 2021
    TSRgrow introduces Lighting as a Platform™ (LaaP) – A revolutionary approach to horticulture
    February 3, 2021
    Enlighten announces AdSuite, new self-service ad buying platform
    February 2, 2021
    SciPhy Systems & Artisan Industries Inc. announce the ARTISAN X-SR200: The next generation of solvent recovery systems for industrial hemp processing
    January 14, 2021
News Briefs
  • Virginia governor signs recreational cannabis bill
    2 hours ago
    Marijuana MSO TerrAscend buys Pennsylvania dispensaries for $63M
    6 hours ago
    US Postal Service tells vape mailers to ready for ban
    8 hours ago
    Push in Florida to cap THC in marijuana appears over
    April 20, 2021
    In huge rules overhaul, Denver OKs cannabis delivery, consumption lounges
    April 20, 2021
    Federal judge boots marijuana trimming firm’s case against US Border Patrol
    April 20, 2021
    Arizona issues 13 new adult-use cannabis store licenses in rural counties
    April 20, 2021
    Idaho governor’s action could stifle marijuana legalization attempts
    April 20, 2021
  • Ohio to license 73 more medical cannabis dispensaries
    April 19, 2021
    Marijuana MSO Jushi pays $100 millon-plus to enter Massachusetts market
    April 19, 2021
    New Mexico cannabis firm fined $142K for safety violations, might lose license
    April 16, 2021
    Oklahoma medical marijuana regulators sued over seed-to-sale tracking
    April 16, 2021
    Cannabis firm Tilray reduces minimum quorum after delayed investor meeting
    April 16, 2021
    Idaho lawmakers shoot down anti-marijuana legalization measure
    April 16, 2021
    Cannabis producer Hexo eyes US entry with CA$1.2 billion shelf prospectus
    April 16, 2021
    LivWell running Colorado’s first-ever marijuana retail ads on TV, report says
    April 16, 2021
  • New Mexico cannabis growers press state to increase plant-count limits
    April 15, 2021
    Curaleaf medical marijuana workers in Massachusetts unionize
    April 15, 2021
    Rhode Island lottery for new medical marijuana stores in limbo
    April 15, 2021
    Cannabis producer Tilray postpones shareholder vote on Aphria merger
    April 15, 2021
    MJBizCon wins awards for growth from Trade Show Executive
    April 15, 2021
    Mississippi high court hears arguments contesting medical marijuana measure
    April 14, 2021
    California-based Connected Cannabis completes $30 million raise
    April 14, 2021
    Michigan marijuana sales reach record $115.4 million in March
    April 14, 2021
News Briefs
  • Cannabis consumption grew in 2020, Statistics Canada data suggests
    4 hours ago
    Quebec ban on selling cannabis ‘associated’ items contested in court
    April 19, 2021
    Cannabis firm Tilray reduces minimum quorum after delayed investor meeting
    April 16, 2021
    Cannabis producer Hexo eyes US entry with CA$1.2 billion shelf prospectus
    April 16, 2021
    Toronto-based Flowr exits Australia, Uruguay, Spain cannabis markets
    April 15, 2021
    Cannabis producer Tilray postpones shareholder vote on Aphria merger
    April 15, 2021
    Organigram reports CA$66.4 million loss on falling cannabis sales
    April 13, 2021
    Aphria loses CA$361 million as cannabis revenue plunges 24%
    April 12, 2021
  • Cannabis retailer High Tide files CA$100 million shelf prospectus
    April 9, 2021
    Health Canada to cease monthly cannabis industry data releases
    April 9, 2021
    California cannabis firm Glass House Group to be bought in $567M deal
    April 8, 2021
    Canopy to buy Supreme for CA$435 million as cannabis M&A heats up
    April 8, 2021
    Curaleaf gets $130M funding for stake in newly acquired global cannabis firm
    April 7, 2021
    Organigram acquires cannabis edibles manufacturer for CA$22 million
    April 6, 2021
    Cannabis producer Zenabis reports CA$70 million loss for 2020
    April 5, 2021
    Australian cannabis sales to surpass $150 million in 2021
    March 31, 2021
  • Canadian cannabis producer Canopy hires diversity and inclusion leader
    March 31, 2021
    British Columbia to consult businesses on farm-gate cannabis sales
    March 30, 2021
    48North Cannabis ends outdoor production amid Canada’s supply glut
    March 29, 2021
    Quebec government raises expected cannabis dividend to CA$88 million
    March 26, 2021
    Provincial windfall from Ontario Cannabis Store seen rising to CA$170M
    March 25, 2021
    ‘Cannabis 2.0’ products dent Canada’s dried-flower market
    March 24, 2021
    Ontario, Alberta lead Canadian cannabis sales drop in January
    March 19, 2021
    New Brunswick won’t privatize recreational cannabis sales
    March 19, 2021
Follow Us
26.6k
followers
72.4k
followers
39.6k
followers
44.4k
followers
151
followers
April Issue

Get Our Daily Email
Subscribe to Our Newsletter »
Marijuana Business Daily
About Us

Marijuana Business Daily - the most trusted daily news source, exclusively written by professional journalists for the industry. Learn more

  • Press Room
  • Advertise With Us
  • Partner With Us
  • Contact Us
  • Careers
© 2011-2021 by Marijuana Business Daily, a division of Anne Holland Ventures Inc.