How It Works

Buddy Clearing is a private, membership-based clearinghouse for distressed and surplus cannabis inventory. We connect licensed operators — dispensaries, cultivators, and processors — who need to move or acquire inventory quickly, and we manage the transaction from listing to settlement. This page explains the process end to end, along with how our fees work.

The Process

Post a Listing. Members submit a listing describing what they're buying or selling — category, quantity, target price, and state. Listings are anonymous; other members see the details of the inventory, not your business identity.
Manual Review & Approval. Every listing is reviewed by Buddy Clearing before it goes live on the board. This keeps the board accurate and limits it to legitimate, license-eligible inventory.
Match & Negotiate. Once live, other members can submit offers on your listing. Buddy Clearing facilitates the introduction and negotiation between counterparties — we don't set your price, but we help move the conversation toward a deal both sides agree on.
Escrow. Once terms are agreed, funds are placed into escrow through one of our banking partners, who issue a temporary ACH number for that specific transaction. Buddy Clearing does not hold member funds directly — settlement runs through the banking partner's cannabis-compliant infrastructure.
Manifest & Compliance Documentation. Buddy Clearing prepares a Metrc-formatted manifest to accompany the physical transfer of inventory. Members remain responsible for their own license compliance, transport, and any state-specific transfer requirements.
Settlement. Once the transfer is confirmed by both parties, escrowed funds are released through the banking partner and the transaction is marked fulfilled on your listing.

Fee Schedule

Buddy Clearing charges a transaction fee of 2–10%, deducted at settlement. The exact rate for a given transaction depends on factors including the product category, the transaction volume, and current market conditions — similar to how card networks like Visa apply different interchange rates depending on merchant category and transaction volume rather than a single flat rate. Higher-volume and lower-risk transaction categories generally fall toward the lower end of the range.

Factor	How it affects your rate
Product Category	Different inventory categories carry different handling, compliance, and matching complexity — this shifts where in the 2–10% range a transaction falls.
Transaction Volume	Larger transactions and higher-volume members generally see rates toward the lower end of the range.
Market Conditions	Rates may be adjusted to reflect current supply, demand, and risk conditions in a given category or state.

A published, category-by-category rate card is in development as our transaction volume grows. Until then, Buddy Clearing will confirm the exact fee for your transaction before you commit to a deal — you will never be charged a rate you haven't agreed to in advance.

Questions

For anything not covered here — a specific listing, an in-progress transaction, or a question about a fee you were quoted — reach out through the Support page. For the legal terms governing your membership, see our Terms of Service and Privacy Policy.

Last updated: August 3, 2026