More important, cannabis dispensaries have not been able to take full advantage of modern payment methods, such as virtual wallets, because major credit card networks have viewed cannabis sales as illegal transactions and therefore prohibit cannabis payment processing. The Cashless ATM Workaround and the CrackdownMarket participants have used the “cashless ATM” model to circumvent the restrictions on card payments in the context of cannabis retail businesses. The card networks have raised concerns that cashless ATM transactions are simply disguised illegal cannabis transactions. Therefore, we recommend that cannabis dispensaries and payment processors carefully review the cashless ATM model to mitigate their risk exposure. Alternative Payment SolutionsOther than cash payment, Automated Clearing House (ACH) payment is generally permissible in the context of cannabis sales.

Source: Forbes March 06, 2024 05:56 UTC