From Reuters: Mastercard moves to ban cannabis purchases on its debit cards
From Reuters:
July 26 (Reuters) – Mastercard (MA.N) has told financial institutions to stop allowing marijuana transactions on its debit cards, dealing a blow to an industry already on the fringes of the financial system in the United States.
Most banks in the country do not service cannabis companies as marijuana remains illegal at the federal level despite several states legalizing its medicinal and recreational use.
“As we were made aware of this matter, we quickly investigated it. In accordance with our policies, we instructed the financial institutions that offer payment services to cannabis merchants and connects them to Mastercard to terminate the activity,” a spokesperson for the company said on Wednesday.
Technically, any purchase using a credit/debit card is going to be “interstate commerce”.
On top of that, WHY IN THE HELL ARE YOU BUYING WEED WITH A CREDIT/DEBIT CARD.
That said, I’m not crazy about credit card companies deciding what can or cannot be purchased with their cards.Report
one of the issues in my state (medical legal, recreational still illegal) is that I guess so many dispensaries are cash-only that they are either targets for burglaries (also having an attractive and easily-sold product) or armed robberies of the owner closing up for the day.
I don’t know what the solution is. The older I get the more I think there are no solutions to anything at all.
Also our roll out was really badly done, it’s the wild west here, and the businesses in my poor burned-out little town are now 50% pot dispensaries and we don’t even have a particularly good supermarket. Also the “mom and pop farms” that our governor said would benefit are being bought up by big companies….so it’s not really SMALL businesspeople any more. Maybe the still-illegal “weed guys” selling out of their car trunk, if they still exist.
there have also been some moderately horrific human-trafficking cases where illegal grow operations were set up, people brought in (mostly from SE Asia) to work them, subjected to slave labor conditionsReport
Colorado seems to deal with that by having a lot of consolidation (g’bye, mom and pops!) and seeing the occasional break-in where thieves manage to steal hash, concentrate, or oils that only weigh a matter of pounds but have street values in the five-figures.
Fewer people have been shot than I thought would get shot.Report
It is kind of amazing how little violent crime is associated with a nearly all cash business.Report
In addition to requiring cash only payments I think there should be a mandate that all dispensaries look like shady gas station parking lots at night in order to simulate an element of danger. Kids these days have no idea how far we have come and need a reminder of the sacrifices made by past generations.Report
In order to buy here, you need to sit on this second-hand sofa next to this pleasant gentleman with teardrop tattoos and watch not less than twenty minutes of “Faces of Death” before announcing your intention to purchase our products. When he announces that he trusts you, an associate will assist you further. Please be aware that he does not respond well to the nickname “Tiny.”Report
Heh, if I ever make it to a Leaguefest I have a hilarious (or depending on your perspective, disturbing) story along those lines.Report
I think ten years or so ago, credit card companies were getting sued for gambling transactions. I think the gist of the cases was something like the husband has a gambling addiction, he is gambling the family into the poor house, the credit card company knew the transactions were for gambling, and gambling was illegal under state law or prohibited under the federal Wire Act. I think the credit card companies went to Congress and got legislation protecting them, but I’m not sure. I can see where credit card companies want to avoid exposure even if a lot of these cases end up being without merit.Report