Cannabis Banking and Regulation E - Managing Debit Card Chargebacks

Event Description

As cannabis-related businesses (CRBs) seek more seamless payment solutions, financial institutions must navigate the complexities of Regulation E when offering debit card services. The increasing use of debit cards in cannabis transactions raises critical questions about consumer protections, liability, and dispute resolution. What happens when a cannabis purchase is disputed? How do financial institutions handle chargebacks for transactions in a federally illegal industry? This webinar will explore the intersection of cannabis banking and Regulation E, outlining the obligations of financial institutions, the challenges of processing chargebacks, and best practices for mitigating risks in electronic payments.

Chargebacks in cannabis banking present unique regulatory and operational challenges. Since cannabis remains federally illegal, many payment processors operate in gray areas, increasing the risk of fraud and financial losses for banks and credit unions. This session will discuss how to handle consumer disputes, the potential implications for financial institutions, and strategies to protect both CRBs and their banking partners. Experts will provide guidance on aligning chargeback policies with regulatory requirements while minimizing risk exposure.

What You’ll Learn:

• Overview of Regulation E and its applicability to cannabis-related transactions

• How financial institutions should handle debit card disputes and chargebacks for cannabis purchases

• Risks and liabilities for banks and credit unions offering debit card services to CRBs Compliance considerations for transaction monitoring and dispute resolution

• Best practices to reduce fraud and chargeback exposure in cannabis banking