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Minnesota Cannabis Banking

As the Minnesota marijuana industry blossoms, more and more cannabis-related businesses (CRBs) are rushing to stake their claim in the market. But despite state-wide legalization, federal regulation puts banks in a tricky spot - they cannot work with CRBs still.

This leaves many businesses operating in cash only, which comes with its own set of risks and challenges - from theft to payroll complications, vendor payment issues, and compliance headaches.

The long and short of it is you need reliable Minnesota cannabis banking services, and fortunately, there are a few options you can count on within the state. We’ll help you weigh your choices and explain how the Solvent service can streamline your operations.

From our dispensary payment processing features to customizable compliance dashboards to keep you in good standing with your banking provider, our solution empowers you to operate just like any other business in any other industry. Get in touch today to learn more! 

The Current Landscape for Legal Cannabis in Minnesota

Cannabis is legal in Minnesota, but it’s not without its complications. The first step came in 2015 when the state legalized medical marijuana. Then recreational use for adults 21 years or older came in 2023.

But desipte all this, the infrastructure to support a fully functioning recreational market is still being built in real-time. The Minnesota Office of Cannabis Management (OCM) is setting up rules and frameworks, but many businesses are still waiting for clarity on zoning, taxes, and operating requirements.

What’s even more complicated, though, is cannabis banking in Minnesota. Federal law still classifies cannabis as a Schedule I substance, which means most banks avoid CRBs altogether - yes, even if you’re fully licensed and compliant under state law.

That legal gray area is why most cannabis businesses can’t just open an account at Wells Fargo or use Stripe for payments. But the solution isn’t to simply operate in cash only, as that comes with even more headaches. You need a state-charted banking partner.

What Institutions Provide Cannabis Banking in Minnesota?

So who can you trust for Minnesota cannabis banking? There aren’t too many options for cannabis banking in any state, but this is actually a good thing. It simplifies your decision-making as you can narrow it down to just one of five providers:

Herring Bank

A regional bank with cannabis banking programs tailored for dispensaries and cultivators. They offer deposit accounts and cash management services, but strong internal compliance documentation will be required. Don’t worry, that’s where Solvent comes in to streamline things.

Magnifi Financial

This Minnesota-based credit union has supported hemp and cannabis-adjacent businesses and is expanding its services to recreational CRBs in real-time. They’re known for their personalized service and in-state knowledge. Definitely a top choice for Minnesota cannabis banking.

Safe Harbor Financial

This fintech provider focused exclusively on the cannabis industry acts as a bridge between CRBs and partner banks, offering a vetted, compliant path to banking services. They may even be able to connect you with loans and other essential financial services to scale your CRB.

United Prairie Bank

This institution has been an early supporter of cannabis businesses in Minnesota, especially those in the CBD and hemp sectors. They now offer expanded support for licensed recreational businesses, with a comprehensive suite of pivotal financial solutions. 

Union Bank and Trust

Another cannabis-friendly bank that offers basic checking and savings accounts, along with some lending and treasury solutions for eligible cannabis businesses. A great option for cannabis banking in Minnesota no matter your role in the industry. 

What Should You Look for in a Minnesota Cannabis Banking Provider?

The right Minnesota cannabis banking provider can help you grow effortlessly and eliminate a lot of the challenges and headaches that come with the financial side of this industry. This is not a decision you should take lightly - here’s what you should consider:

Full-Service Cannabis Support

Look for a provider with specific experience in working with cannabis businesses - not just one that’s willing to look the other way. They should offer tailored services like cash handling, deposit tracking, and cannabis-specific lending (if available).

Proven BSA/AML Compliance

Any bank working with CRBs must comply with Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) rules. Make sure they have well-documented processes for reporting, transaction monitoring, and Know Your Customer (KYC) requirements. We help with this.

Transparent Pricing

Fees are higher in cannabis banking, but they shouldn’t be a mystery. Avoid banks that bury fees in fine print or charge extra for basic services like ACH or deposit pickups. 

Cash Handling & Armored Transport

You’ll still be dealing with a lot of physical currency, as this is how many customers prefer to buy cannabis. Does the provider offer secure cash pickup services or partnerships with armored transport companies? If not, you should keep looking.

Online Portals & Real-Time Access

Modern cannabis companies need modern tools. You should be able to track your balances, payments, and fees in real time, especially with high scrutiny from regulators.

Responsive, Human Support

This isn't an industry where you can wait three days for a support ticket. You want a team that knows the stakes and is ready to help when it counts.

How Does the Solvent Solution Come Into Play for Minnesota CRBs?

Regardless of your choice for Minnesota cannabis banking, you’ll need to focus heavily on compliance to stay in good standing with your partner. That’s where we come in. 

Solvent provides compliant, transparent payment processing using authorized PIN debit networks so you can accept card payments in-store, at the curb, or during delivery. 

All transactions are tracked and reported under your business’s DBA, with real-time dashboards and fast settlement (funds in your account in two business days or less). But we go further than just processing. Solvent’s compliance platform helps you stay audit-ready with:

  • Seed-to-sale tracking integration

  • Transaction monitoring for suspicious behavior

  • Direct deposit oversight for payroll transparency

  • Document and compliance log management

  • SOC 2 Type 2 certified security

  • Custom background check and social media monitoring tools

You’ll also get 24/7 live customer support from a US-based team that knows the cannabis industry inside and out. A real person picks up the phone anytime an issue comes up. And as you might have already discovered, issues are inevitable in this complicated industry!

From cannabis banking California to cannabis banking in Washington, we serve the entire country with the same commitment. Our goal is to make your life easier as a CRB operator and level the playing field.

Solvent helps you keep your operations tight, your regulators satisfied, and your business growing. So, connect with our team today and let’s get started.

Frequently Asked Questions

Can Minnesota dispensaries use banks?

Yes, but the options are fairly few and far between. You can’t work with traditional banks, only certain institutions work with cannabis businesses. You’ll also need to go through additional onboarding, compliance, and reporting steps.

Why do CRBs need to work with specialized financial institutions?

Federal law creates too much risk for most banks. Those serving CRBs must adhere to strict compliance procedures. That’s why working with cannabis-friendly banks or fintech partners is essential.

What is the Banking Act for cannabis?

The proposed SAFE Banking Act would allow banks to serve cannabis businesses without federal penalties. It hasn’t passed as of now, though, and we’re certainly not holding our breath for that to change anytime soon.

What types of cannabis companies can use Solvent?

We work with dispensaries, delivery services, cultivators, testing labs, CBD and hemp brands, and manufacturers. We’ll provide the solutions you need  if you're licensed and operational in Minnesota - that’s our only criteria!

What cities in Minnesota does Solvent work with?

Solvent works across the entire state, from Minneapolis and St. Paul to Rochester, Duluth, and beyond. We’ll connect you with local banking partners and solutions tailored to your region.

How do I get started?

It’s so easy. Get in touch for a one-on-one consultation. We’ll walk through your current challenges, recommend a banking partner if needed, and help you implement Solvent’s payment and compliance tools. 

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