CannaTrac Provides Cannabis Banking Access (with or without the SAFE Banking Act)
February 19th, 2020
App, Exclusive, News, Top Story
Many cannabis businesses struggle to access even basic banking services. While it’s possible to secure a bank account, it requires a massive amount of paperwork that has forced many small businesses to deal in cash only. Most banks and credit unions don’t even bother offering conventional financial services to cannabis companies, much less advanced services.
Regulators have sought to solve these issues by introducing legislation like the SAFE Banking Act, which would limit the power of federal banking regulators and provide safe harbor to financial institutions serving cannabis companies. Until then, many cannabis companies are still either operating in cash only or quietly using cannabis-friendly banks.
CannaTrac, the leading cashless payment solution for the cannabis and hemp industries, and beyond, offers a third option for cannabis dispensaries and delivery services by providing banking access, mobile payments, and loyalty and rewards capabilities, as well as merchant processing to online and brick-and-mortar CBD retailers with the lowest industry rates.
Unique Approach to Payments
CannaTrac has built a unique ecosystem of products and services tailored for the cannabis industry. Rather than waiting for regulatory clarity, the company built a cashless payment system designed to eliminate the need to process credit cards on-site and encourage customers to spend more through loyalty and rewards programs.
CannaCard(R) Mobile App
Customers are rewarded for each purchase that can be used at participating locations, while retailers can sidestep thorny banking issues and focus on growing their business. In addition, the solution ensures that retailers are adhering to all relevant compliance and know-your-customer laws — where violations can be extremely costly.
CannaTrac is also targeting CBD companies that are selling their products online through ecommerce shops. Using an online plugin, merchants can quickly and easily integrate CannaCard® payments into their ecommerce platforms. The company also offers online and brick-and-mortar retailers with the lowest rates available in the industry.
SAFE Banking Act Friendly
The SAFE Banking Act passed the house 321-103 in a rare showing of bipartisan support in September 2019. While Republicans in the Senate have traditionally taken a negative view on cannabis, they can appreciate the need to ease banking access to both improve the safety of business as well as make cannabis sales easier to trace through the financial system.
Once that legislation reached the Senate, however, Senate Banking Committee Chairman Mike Crapo (R-Idaho) raised several concerns, mostly to do with wider policy issues like public health. Several banking organizations have pushed the Senator to focus on the narrower financial services issues actually contained in the legislation. The bill is co-sponsored by Senator Cory Gardner (R-Colorado), so it has bipartisan support. The picture is still murky, however, leaving cannabis-related companies in banking limbo.
CannaTrac’s experience helping cannabis and hemp-based CBD companies navigate the complexities of compliance requirements could play a vital role in its future. For instance, it’s agreement with Pacific Banking Corp. in 2019 enabled cannabis companies to apply for CannaCard® and banking services at PBC simultaneously with a single application.
CannaTrac is raising a $5 million seed round atop its $20 million Series A to scale its business both domestically and around the world. In addition to PBC, the company has already inked a contract with Valid USA, Inc. — the fifth largest SIM card producer in the world and a leading manufacturer of banking cards — to implement, distribute, license and promote its payment solution software and products internationally.
The SAFE Banking Act may be a wildcard this year, but CannaTrac is well-positioned to provide valuable banking services and payment options to cannabis companies with or without its passage.
CannaTrac Company Contact:
Tom Gavin CEO
CFN Media Contact:
Frank Lane President
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