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While cash-only businesses may seem like the minority, as online e-commerce is now the norm, there are a few notable exceptions. The one currently making the most waves across the nation is the cannabis industry.

Even though marijuana is currently legal in 29 states (eight including the District of Columbia have legalized cannabis for recreational use), the federal banking restrictions are discouraging banks from working with legal cannabis businesses. This limits legitimate businesses from shopping online, which primarily requires credit cards or some form of electronic transmission of funds. This limits the ability of marijuana businesses to shop online for equipment, ancillary products, and basic supplies, forcing them to buy items from local businesses that may not be able to offer the competitive pricing available online.

MaverickLabel is changing that for their cash-only based customers – and the way it works is simple. After choosing custom or stock labels to purchase, customers can select “advance cash deposit” as their payment method during checkout. After placing the order, a filled out deposit slip will be emailed to the customer with their choice of three banks: Chase, Bank of America, or Wells Fargo.

screenshot of mavericklabel website showing advance payment option

The customer then brings the deposit slip and cash to the nearest bank branch. Once MaverickLabel is notified of the deposit, it releases the order for production and shipping.

Until the federal government opens the door to more traditional banking options for cannabis businesses, Dr. Rick Kent, MaverickLabel’s President and Chief Science Officer had this to say about the advance payment option now available:

It’s really a clean system for dealing with what is admittedly going to be a temporary problem. I’m sure the Feds are going to come around, but the Feds are slow. In the meantime, this lets [businesses] take advantage of the Internet economy.

Not only does this expand the choices marijuana businesses have to shop for custom or stock labels, but it’s safer as well. 

Sources:

http://www.governing.com/gov-data/state-marijuana-laws-map-medical-recreational.html

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