Cannabis Business Banking in Ohio
- Ohio Cannabis
- Cannabis Business in OH
- Cannabis Business Banking in Ohio
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Banking Regulation and Cannabis Reform Advocacy in Ohio
In Ohio, the Division of Financial Institutions, under the Department of Commerce, regulates state-chartered banks and trust companies according to Title 11 of the Ohio Revised Code. The state's banking commission, part of this division, consists of nine members, with the deputy superintendent for banks as chair and the governor appointing the others.
The Ohio Attorney General has pushed for federal reforms to ease banking for cannabis businesses. In May 2019, 38 other state attorneys general urged Congress to pass the SAFE Banking Act, which would allow legal marijuana businesses access to the federal banking system.
- Ohio's cannabis industry includes approximately 35 licensed cultivators and around 140 dispensaries, with the majority holding Certificates of Operation and a smaller number operating under provisional licenses.
| Banks, Credit Unions, and Fintechs that offer banking services to Cannabis, CBD, and Hemp Businesses in OH | Type of Financial Institution |
|---|---|
| Amalgamated Bank | Bank |
| Chase (CBD Only) | Bank |
| Community Choice Credit Union | Credit Union |
| Element Federal Credit Union | Credit Union |
| First National Bank of Pasco | Bank |
| Green Check | FINTECH |
| HSLC Bank | Bank |
| Jonestown Bank & Trust Co. | Bank |
| Needham Bank | Bank |
| Safe Harbor Financial | FINTECH |
| Shore United Bank | Bank |
| Wright-Patt Credit Union | Credit Union |
- Are you an Ohio-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 Practices in Ohio for Dispensaries, CBD Shops, and Hemp Retailers
Medical Marijuana Dispensaries
- Cash Payments: Many dispensaries remain cash-only due to federal banking restrictions. On-site ATMs are common for customer convenience.
- Debit Card Transactions: Some use cashless ATM systems, which function like ATM withdrawals, often rounding to the nearest $10 increment and providing change in cash. These transactions may incur extra fees.
CBD and Hemp Retailers
- Credit and Debit Cards: Hemp-derived products (with less than 0.3% THC) are federally legal, allowing standard card payments. However, some financial institutions classify CBD businesses as high-risk, leading to higher fees or limited services.
- Alternative Payment Solutions: Retailers may work with high-risk payment processors, which offer customized solutions for card transactions, though at higher costs.
Challenges for Financial Institutions
Legal Risks: Banks face potential federal enforcement due to marijuana's illegal status under federal law, despite its legality in Ohio, creating a precarious legal environment.
Regulatory Risks: Serving cannabis businesses requires stringent AML and KYC compliance, increasing operational costs and complexity.
Reputational Risks: Partnering with the cannabis industry may harm a bank's reputation among clients opposed to marijuana legalization, risking customer loss.
Operational Risks: The cash-heavy nature of cannabis businesses elevates theft risks and complicates financial management.