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Michigan Cannabis Banking

Although the cannabis industry is in a better place than ever before, financial roadblocks continue to pose a problem for legitimate businesses. Dispensaries, cultivators, processors, testing labs, and delivery services all struggle to secure reliable cannabis banking in Michigan.

Despite state-wide legalization, most banks still refuse to provide financial business services to cannabis-related businesses (CRBs) because of the federal implications. 

As a result, many CRBs are forced to operate with just cash. This increases security risks, complicates tax payments, and makes compliance more difficult. 

But, getting Michigan cannabis banking doesn’t have to be an uphill battle. Solvent streamlines acquiring financial services with secure cannabis payment processing and compliance tools tailored to the industry’s unique challenges. 

Set yourself up for success with high-quality payment hardware, advanced compliance monitoring, and 24/7 customer support to keep your business running smoothly. Connect today and see why Michigan CRBs trust Solvent!

Current Restrictions and Challenges for Cannabis Banking in Michigan 

Both medical and recreational cannabis are legal in the state of Michigan, yet federal restrictions and regulatory complexities loom large because of the federal government’s stance on cannabis.

Banks that operate under federal charters have their hands tied, as they must adhere to the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) regulations. 

These extra compliance burdens discourage most banks from working with CRBs. Here are some of the most prominent hurdles to acquiring reliable cannabis banking in Michigan in 2025:

  • Federal Illegality: Even with the passing of the 2018 Farm Bill, marijuana is still a Schedule I controlled substance. This, and more specifically the complications that come with it, is enough to deter major banks from offering services.

  • Strict Reporting Requirements: Banks are required to file Suspicious Activity Reports (SARs) for cannabis transactions. The increased compliance costs aren’t worth it in their eyes.

  • Higher Banking Fees: With more risk comes higher fees. While there are cannabis-friendly banks, they often charge higher fees for accounts and transactions.

  • Limited Financial Services: Although you might be able to set up a checking account, getting access to loans, credit lines, or traditional business banking products is a separate conversation.

The Michigan Marijuana Regulatory Agency (MRA) enforces strict licensing and financial transparency rules for how CRBs should keep financial records. Failure to comply leaves you exposed to fines or worse, license revocation.

Fortunately, this isn’t something you need to stress about when you understand the compliance guidelines and have a reliable cannabis-friendly financial institution on your side helping you navigate the path ahead. 

What Banks are Cannabis Friendly in Michigan?

Michigan is lucky enough to have a few dependable state-chartered financial institutions that actually specialize in cannabis banking. Here are a few banks and credit unions worth exploring further:

  • Community Choice Credit Union: Provides business banking services tailored to cannabis operators.

  • Dart Bank: Offers deposit accounts, cash management, and financial advisory services for CRBs.

  • Herring Bank: A trusted cannabis banking partner with a strong focus on compliance.

  • Safe Harbor Financial: Specializes in cannabis financial services, offering secure banking and advisory support.

  • State Savings Bank: Provides business accounts and payment solutions for licensed cannabis businesses.

  • PFCU Credit Union: Supports CRBs with account management, merchant processing, and compliance guidance.

Just know that each of these options has its own unique requirements for opening an account and different fee structures. You need to weigh your options for cannabis banking in Michigan and choose wisely, as your bank can make or break your day-to-day and long-term success.

What to Look for in Michigan Cannabis Banking

With all the options at your disposal for Michigan cannabis banking, it’s not just a matter of finding a financial institution that will work with you - you need to connect with a provider that empowers you to scale higher seamlessly.

Licensing and Compliance Standards

Any financial institution serving Michigan CRBs should have a dedicated cannabis banking program that meets both state and federal reporting requirements, including the MRA rules for financial transparency, tax payments, and deposit tracking.

Cannabis banking should also include ongoing transaction monitoring and compliance reporting to flag suspicious activity and avoid legal risks.

Security and Fraud Prevention Measures

A banking provider should have secure cash-handling services to protect you from the risks of theft or fraud. Similarly, digital banking should include multi-factor authentication (MFA), role-based permissions, and encrypted transaction processing to keep sensitive data safe.

Service Availability and Payment Processing

A strong cannabis banking provider should support multiple legal payment options beyond just cash transactions, including PIN debit processing and ACH payments. This will make your life so much easier.

You should be able to operate multiple locations under one financial account as well to simplify financial management for companies with separate dispensaries, grow operations, and distribution facilities.

Look for direct deposit and payroll processing to eliminate the need for cash payments to employees. Other services you might be interested in include:

  • Digital banking

  • Electronic tax payments

  • Cash management accounts

  • Cash pick-up and delivery

  • Investment options

  • Employee accounts

  • Direct deposit payroll

  • Wire services

  • Loans and financing

Weigh your options and determine who provides the most comprehensive range of financial services for Michigan cannabis banking.

The Cost Conversation

Remember, most cannabis banks charge higher monthly fees to offset the additional compliance costs associated with serving you. That means you need to be shown upfront pricing with no hidden rate hikes, as this will affect your profitability as well.

Be aware of transaction fees, deposit limits, and minimum account balance requirements before opening an account. You should also exercise caution when working with a bank that requires a long-term contract.

Customer Support

You have enough to worry about without having to navigate the uncertainties of cannabis banking in Michigan on your own! This industry is heavily regulated and always changing, so having a dedicated cannabis banking representative is invaluable.

Live customer support (not automated bots) should be available 24/7 to assist with account issues and compliance concerns. 

Streamline Payment Processing and Financial Management With Solvent!

Solvent makes cannabis banking easier, safer, and more compliant for businesses across Michigan, from dispensaries to cultivars. While most financial services steer clear of cannabis, we provide tailored payment processing solutions so you can operate with confidence:

  • Fully Compliant Payment Processing: Our platform meets Michigan’s strict regulatory standards for legal, secure transactions. You can put the stress of simply doing business in the past.

  • Personalized Platform for Compliance: Real-time transaction monitoring, compliance logging, and seed-to-sale tracking capabilities empower you to stay compliant and avoid the risks of getting accounts frozen.

  • Reliable Payment Hardware: Cheap card readers cause more problems than they solve. That’s why we provide high-quality, secure payment terminals built for high-volume transactions.

  • Rapid Settlement Times: Get customer payments deposited into your bank account within two business days or less. You’ll never have to worry about fulfilling your own debt obligations or investing in growth opportunities!

  • World-Class Support: This industry is complex, but you don’t have to navigate it alone. Our US-based customer support team is always a click or call away.

  • Seamless, Insightful Reporting & Compliance Tools: Manage payments, fees, and transactions with real-time dashboards and downloadable reports to inform strategic decisions and stay compliant.

Solvent is also the #1 solution for neighboring states. So whether you need help with Michigan cannabis banking or cannabis banking in Ohio, Minnesota cannabis banking, Illinois cannabis banking, or anywhere in between, you can count on us.

Take the next step today. Contact Solvent and find out how we can help you streamline your operation and put the stress of compliance and payment processing in the past for good.

Frequently Asked Questions

Who is the Cannabis Lender in Michigan?

Unfortunately, there aren’t many traditional financial providers to choose from. Some of the banks we listed above may offer loans, but your only option might be securing financing through private investors, revenue-based lending, or equipment financing.

Do Banks Do Business With Dispensaries?

Yes, but only a select number of cannabis-friendly banks and credit unions are willing to work with Michigan dispensaries. Do your research and make sure you’re partnering with the right provider.

Is Cannabis Cash Only in Michigan?

No. While some dispensaries work through cash only, this is a horrible play in the long run. It creates compliance headaches and exposes CRB to unnecessary risk. There are plenty of alternatives to working with cash alone. 

What Are the Next Steps?

You came here because you needed Michigan cannabis banking, and we’re ready to help you get started. Get in touch with Solvent now and see for yourself how we can streamline your day-to-day operations with a reliable, fully compliant payment processing solution!

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