Startup Grind Columbia, Md held it’s January event that focused on Maryland’s exploding medicinal Cannabis industry. In just under 3 years, the industry has …
I would like to add to the credit card processing discussion of this video because there is a lot of confused information floating around out there, not necessarily on this video. We have been working with the industry since 2006 and Credit Card Processing for cannabis is illegal – period. Gift card programs, "apps", and crypto exchange programs are not transparent – under Federal guidelines and card brand regulations those services are money laundering. This puts businesses and providers at risk because the true nature of the transaction is not known to the processor or the acquiring bank. No matter what the sales person tells you. Although some blockchain exchange systems do have a chain of custody flows that do come very close to being compliant – there are no banks that will stand behind them, knowingly. Remember most electronic money rails fall under federal oversight and regulation. Cashless ATMs are a great solution and we do provide cashless ATMs to licensed dispensaries, delivery services, and other plant touching businesses.
When it comes to ancillary businesses, yes, they have trouble with processing and banking as well. This is due to the fact that the SARs requirements and card brand regulations are the same for non plant touching businesses because they derive income from and advertise to the cannabis industry. This has been confirmed with regulators. However, there are a few compliant solutions available for these businesses and we do have services available to these merchants.
The audience member that mentioned AuthorizeNet is a good solution for CBD. AuthNet not going to work with CBD as a payment processor at this time and will shut your account down as soon as it is audited. Many processors these days have "auto" approvals so merchants think they are approved, however, once the account reaches a certain level of transactions the account is audited. AuthorizeNet CAN, however, be used as a gateway if there is an associated compliant merchant account, like we offer. If you would like more information on compliant CBD merchant services we are happy to answer all questions.
We are always happy to answer questions so feel free to reach out. Just know that our team is not here to tell you what you want to hear but what you need to hear!
I would like to add to the credit card processing discussion of this video because there is a lot of confused information floating around out there, not necessarily on this video. We have been working with the industry since 2006 and Credit Card Processing for cannabis is illegal – period. Gift card programs, "apps", and crypto exchange programs are not transparent – under Federal guidelines and card brand regulations those services are money laundering. This puts businesses and providers at risk because the true nature of the transaction is not known to the processor or the acquiring bank. No matter what the sales person tells you. Although some blockchain exchange systems do have a chain of custody flows that do come very close to being compliant – there are no banks that will stand behind them, knowingly. Remember most electronic money rails fall under federal oversight and regulation. Cashless ATMs are a great solution and we do provide cashless ATMs to licensed dispensaries, delivery services, and other plant touching businesses.
When it comes to ancillary businesses, yes, they have trouble with processing and banking as well. This is due to the fact that the SARs requirements and card brand regulations are the same for non plant touching businesses because they derive income from and advertise to the cannabis industry. This has been confirmed with regulators. However, there are a few compliant solutions available for these businesses and we do have services available to these merchants.
The audience member that mentioned AuthorizeNet is a good solution for CBD. AuthNet not going to work with CBD as a payment processor at this time and will shut your account down as soon as it is audited. Many processors these days have "auto" approvals so merchants think they are approved, however, once the account reaches a certain level of transactions the account is audited. AuthorizeNet CAN, however, be used as a gateway if there is an associated compliant merchant account, like we offer. If you would like more information on compliant CBD merchant services we are happy to answer all questions.
We are always happy to answer questions so feel free to reach out. Just know that our team is not here to tell you what you want to hear but what you need to hear!