Cannabis Business Banking in Oregon
- Oregon Cannabis
- Cannabis Business in OR
- Cannabis Business Banking in Oregon
Related Pages:
Key Points
- Oregon's DFR oversees cannabis banking, but federal limits led the Attorney General to back the SAFER Banking Act in 2023.
Oregon's Financial Regulation Efforts and Support for Federal Cannabis Banking Reform
In Oregon, the Division of Financial Regulation (DFR) oversees financial institutions, including their dealings with cannabis businesses. Despite state legalization, federal restrictions have limited banking access for the industry. To address this, the Oregon Attorney General joined 21 other attorneys general in September 2023 to advocate for the SAFER Banking Act, a federal measure aimed at easing these restrictions.
- The OLCC has issued licenses for over 800 recreational marijuana dispensaries, of which around 400 are authorized to provide medical marijuana to registered cannabis patients.
| Banks, Credit Unions, and Fintechs that offer banking services to Cannabis, CBD, and Hemp Businesses in OR | Type of Financial Institution |
|---|---|
| Amalgamated Bank | Bank |
| Central Willamette Credit Union | Credit Union |
| Chase (CBD Only) | Bank |
| First Citizens Bank | Bank |
| Green Check | FINTECH |
| Herring Bank | Bank |
| Maps Credit Union | Credit Union |
| Safe Harbor Financial | FINTECH |
| Salal Credit Union | Credit Union |
| Twin City Bank | Bank |
| Wauna Credit Union | Credit Union |
- Are you an Oregon-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!Comparison of Payment Methods for Cannabis-Related Businesses
| Payment Method | Description | Challenges |
|---|---|---|
| Point of Banking (Cashless ATMs) | Simulates ATM withdrawals for debit card payments, rounded to the nearest $5 or $10, with change given back. | Faces regulatory scrutiny, raising viability concerns. |
| ACH Transfers & eChecks | Securely reduce cash handling by enabling direct bank payments. | Requires third-party account setup, limiting adoption. |
| Debit Card Processing | Rarely available due to federal restrictions. | Alternative arrangements carry regulatory risks. |
| Credit Card Processing | Not available as Visa and Mastercard prohibit cannabis transactions under federal law. | Federal illegality prevents use. |
| Specialized Payment Processors | Offer tailored solutions like ACH and eChecks for cannabis businesses. | High fees and strict compliance requirements. |
Risks for Oregon Banks Serving Cannabis-Related Businesses
Banks serving cannabis businesses face risks from federal law conflicts:
- Legal: Cannabis remains federally illegal, risking prosecution and requiring costly compliance with AML laws.
- Reputational: Serving cannabis may deter customers and invite regulatory scrutiny.
- Operational: High compliance costs and potential insurance issues add challenges.