What Visa’s Warning About ‘Cashless ATMs’ Means For The Cannabis Industry

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Visa sent out a memo to banks that work with cannabis businesses explaining that cashless ATMs go against their rules

at marijuana businesses have been reported since mid-November. And due to the hassle and risk of cash, financial and payment processing startups have popped up to offer imperfect solutions to dispensary owners.to banks that work with cannabis businesses explaining that cashless ATMs, one of three methods dispensaries use to accept non-cash transactions, run afoul of Visa’s rules.

Katrina Skinner, general counsel and chief banking officer of Simplifya, a regulatory and banking compliance software company that serves cannabis companies, says the irony in cannabis payments cannot be missed. While Visa and the other major credit card companies have policies that block cannabis transactions, the only way federally illegal companies can process payments is to use the federal banking system.

“This has gone on and been tolerated long enough that there's perhaps a pretty strong constitutional argument [that they’re legal],” Roda says. “But if you're looking for written legal guidance that actually permits this behavior, it doesn't exist.”

 

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The Senate needs to address this. Their making it illegal because it's only legal as far as the state and not the country. But the problem might be if if passes federal laws, then probably can be purchased with medicare/Medicaid. So they don't want to pay for your marijuana use.

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Source: Forbes - 🏆 394. / 53 Read more »

The Cannabis Industry Strikes BackRecently, advocates and operatives have been collaborating on a series of actions, starting with a letter to Governor Newsom and the state legislature demanding tax reform, additional retail outlets, and a check on local control so the California cannabis industry does not continue to collapse.
Source: Forbes - 🏆 394. / 53 Read more »