By Allen Kopelman — B2B Vault: The Biz to Biz Podcast
For years, cannabis dispensaries have been stuck in a broken payment reality. The reliance on cash is not just an inconvenience; it is a massive safety and financial burden. On a recent episode of the B2B Vault Podcast, I sat down with Kevin Hart (Green Check Verified) and Michael Andrud (LUT) to discuss how Compliant Cannabis Payments are finally becoming a reality.
While 75% of cannabis transactions are still cash-based, handling that cash costs dispensaries between 6–8% once you factor in armored transport, Security, labor, and compliance. Furthermore, the “Cashless ATM” workarounds that many used to bypass this have proven to be unstable, often leading to frozen funds and sudden outages when flagged by major card networks.
Compliance is the foundation of any legitimate cannabis financial system. Green Check Verified provides the necessary infrastructure by analyzing transactions at the “atomic level.”
Scale: Supports 185+ financial institutions and 17,000+ cannabis businesses.
Depth: Integrates POS, inventory, and financial records.
Verification: Triggers 40+ compliance checkpoints per sale to ensure funds entering the banking system are legitimate and state-compliant.
LUT is a cloud-native, closed-loop payment system designed specifically to work where traditional card networks cannot. It is independent of Visa and Mastercard rails, making it immune to the “shut-off” risks associated with gray-area processors.
How LUT Works:
Consumer Onboarding: Customers download the LUT app and verify their identity.
Funding: Users link their bank account via Plaid; funds remain FDIC insured.
Transaction: Merchants enter the amount on the LUT merchant app and scan the customer’s QR code.
Settlement: Merchants receive funds the next day with full visibility.
One of the most significant breakthroughs of this stack is its support for E-commerce and Delivery. Customers can place orders online and finalize payments at the point of pickup or delivery—all while the compliance data flows through Green Check to prevent reporting gaps.
Eliminates “Round-Up” Pricing: No more forcing $9.99 items to $10 to accommodate ATM withdrawals.
Consumer Rewards: LUT offers cash-back rewards and location-based discovery tools for users.
Budtender Incentives: An “ambassador model” allows budtenders to earn rewards for onboarding customers, driving organic adoption.
Bank Confidence: Full transparency ensures banks can support these businesses without fear of regulatory blowback.
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Green Check Verified
For cannabis banking, compliance, and financial services: 
greencheckverified.com
LUT
To explore consumer and merchant payments: myloot.com
Download the LUT app and LUT merchant app in the App Store or Google Play.
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Smart Invoicing by Nationwide Payment Systems: Smart invoicing – Syncs with QuickBooks Online
Book a call with Allen Kopelman: calendly.com/allen-nps
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It costs dispensaries an estimated 6–8% to handle cash when you factor in armored transport, manual reconciliation, labor, security, insurance, and the inherent risks of theft or loss.
These are workarounds that use ATM rails improperly. When card networks like Visa flag them, they shut down the system immediately, levy heavy fines, and can freeze merchant funds for 180 to 280 days.
They provide infrastructure that analyzes every transaction at an “atomic level.” This involves checking roughly 40+ data points—such as state rules, THC limits, and license types—to prove to regulators that the funds are legitimate.
LUT is a closed-loop, cloud-native system. Unlike most processors, it does not rely on Visa or Mastercard rails for cannabis transactions, making it immune to the outages and shutdowns that plague the industry.
A consumer downloads the app, completes identity verification, and links their bank account via Plaid. To pay in-store, the merchant simply scans the customer’s QR code on their smartphone to complete the transaction instantly.
The Money remains within the banking system at a sponsor bank (First Federal Bank of Florida). It is tracked via a digital ledger and remains FDIC insured.
LUT supports a payment widget for online shopping carts. Funds are held when the order is placed and then “finalized” once the customer proves their location at pickup or delivery, ensuring full compliance.
Cash transactions often force “rounding up” to avoid making change. Digital payments allow for standard Retail pricing (like $9.99), as well as easier bundles and loyalty discounts that are difficult to manage with cash.
Consumers receive cash-back rewards (known as “Loot Paydays”), location-based push notifications for deals, and a map of nearby stores that accept the app.
It allows budtenders to earn residual income. When an employee signs up a customer for LUT, they can receive a small cut of that customer’s future transactions, creating a career-long incentive to drive adoption.
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