cannabis payments are shifting as FLEX Payment Solutions rolls out an expanded Pay By Bank option aimed at dispensaries, CBD sellers, lenders and credit unions. Announced June 18, 2026, from St. Louis, the family-owned company — a five-time Inc. 5000 honoree — says the service lets customers authorize bank-to-bank transactions through a digital flow instead of using card networks.
FLEX describes Pay By Bank as a direct account-to-account payment method that reduces reliance on traditional card rails. The product lets a consumer log into their bank or authenticate an account and approve a single payment or a recurring debit. FLEX positions the feature as a compliance-friendly payment path for regulated industries, including licensed cannabis retailers that face restrictions with mainstream card processors.
Rob Zeitler, President of FLEX Payment Solutions, framed the update around merchant choice. “Pay By Bank gives merchants another tool to improve checkout while creating opportunities to speed funds and reduce acceptance costs,” he said in the company release. FLEX did not release specific fee schedules; it lists Pay By Bank alongside its existing services: ACH processing, card processing, text payments, IVR payments, instant funding technologies and payment gateway integrations.
How it works – Consumer initiates a purchase and selects Pay By Bank at checkout. – The solution redirects to a bank login or authentication widget. – Consumer confirms the account and authorizes the transaction. – Funds move from the consumer’s bank account to the merchant’s account via an account-to-account rail supported by FLEX.
FLEX markets the solution for four primary use cases. First, retail cannabis and CBD sales where banks and card networks impose restrictions that raise costs or block services. Second, consumer lenders that need repeatable repayment flows. Third, credit unions that want a commercial payments option for business members. Fourth, other specialized verticals with constrained payment choices.
Industry context Licensed cannabis businesses commonly face higher payment costs and limited processor options because federal restrictions force many payment providers to decline cannabis-related merchants. Some operators rely on cash, while others use cashless ATM services or high-fee card gateways. FLEX’s announcement targets those gaps by offering an online bank transfer method that can sit alongside existing ACH or card channels.
FLEX emphasizes legal compliance in marketing materials, stating Pay By Bank is a “compliant and legally supported digital payment option.” The company suggests the feature provides a documented authorization trail and can integrate with merchant point-of-sale and e-commerce systems through its gateway tools.
Potential effects for cannabis merchants FLEX claims Pay By Bank reduces “payment friction” and lowers acceptance costs, though it has not published comparative cost figures. For a dispensary that processes frequent low-to-medium value sales, replacing some card transactions with bank-to-bank payments could lower per-transaction fees, reduce chargeback exposure tied to card networks, and accelerate settlement when paired with instant funding options. For multi-site operators, a single integration to FLEX’s ecosystem can unify ACH, card and bank-transfer flows.
Credit union and lender use cases For credit unions, FLEX positions Pay By Bank as an add-on to commercial banking programs. The feature can let business members accept payments or allow consumer loan repayments via authenticated bank debit. For lenders, the company highlights the convenience of direct debit authorizations that support scheduled repayments.
What to watch Key adoption indicators will include pricing transparency, bank coverage (which banks and account types support the flow), settlement timing, and how regulators interpret account-to-account transfers for cannabis proceeds in various states. FLEX’s reputation as a repeat Inc. 5000 honoree signals growth, but merchants will likely seek third-party comparisons and contract terms before switching primary payment rails.
Where to learn more FLEX links product details and a demonstration video on its site. Merchants should verify state rules, their acquiring bank’s policies, and any bookkeeping or reconciliation changes required when moving transactions off card rails.
Bottom line FLEX’s Pay By Bank expansion adds a bank-to-bank digital payment choice aimed at reducing reliance on card networks for cannabis and other regulated verticals. The solution targets merchant flexibility, authenticated authorization records, and integration with existing payment services in FLEX’s portfolio. Adoption will depend on pricing, bank coverage, and merchant confidence in the legal treatment of account-to-account transfers for cannabis sales.
