Cautious Bankers Weigh Risk vs. Profit – MMJ Merchant Account

Posted on September 23, 2015 by admin

For banks, the marijuana industry has become a question of risk vs. profit. Even though marijuana is becoming legal in more and more states for both medical and recreational use, the vast majority of banking institutions in the U.S. are sitting on the sidelines. Bypassing what could be billions in business.

The strict regulations involved, the extreme scrutiny and the overwhelming amount of paperwork required deters banks from making marijuana banking a line of business. The very few banks that are willing to open accounts tied to cannabis typically impose steep fees and limitations on their clientele. According to the guidelines issued by the Treasury Department, banks involved in the marijuana industry must do “due diligence” in the monitoring of their customers for suspicious activity.

Robert Rowe, vice president and associate chief counsel of the American Banker’s Association, explained that no other industry comes close in terms of what is required for compliance. “If a bank has a restaurant or a tavern that serves alcohol, they don’t have to go in there and monitor to make sure the business isn’t serving alcohol to a minor. With a marijuana business, the obligation shifts back to the bank”.

With banking unattainable for the majority of dispensary owners, ATMs have become one of the most feasible ways to keep customers supplied with cash. Because marijuana is not cheap, it is important to dispensary owners that they have an in-store ATM. A high-quality strain of marijuana can easily cost upwards of $300.

Jamie Perino, the CEO of Euflora dispensaries, was unable to find a bank that would work with her. Now, she must pay her employees and her landlord with cash. She can only accept cash from her customers, and she must pay her taxes in cash. Her ATM for Euflora’s 16^th Street Mall location is even listed under a different business name in order to avoid close scrutiny.

While it is not illegal for banks to work with the cannabis industry, the federal requirements involved make it more work than is profitable for financial institutions. Any bank that deals with the cannabis industry is going to be under a lot of scrutiny, whether they’re involved with ATMs or checking accounts. This leaves many businesses with the cash only option, which is incredibly unsafe and inconvenient.

Another increasingly popular option for marijuana businesses is a medical marijuana merchant account with a high risk provider. The advantage with this type of merchant account is that safe payment processing can be secured without worrying about the endless red tape involved with traditional financial institutions. The application process is simple and hassle-free.

The conservative approach of bankers is justifiable. After all, they have the responsibility of dealing with other people’s money. Unfortunately, not much can be done for the present banking situation of the marijuana industry until Congress makes changes. For now, businesses are forced to either operate in cash or seek alternative solutions like medical marijuana merchant accounts.

Contact us for a MMJ merchant account today!

Plans for Recreational Marijuana Regulations in California Begin

Posted on August 26, 2015 by admin

It is well known that medical cannabis is big business for California. However, California’s history with the regulation of medical marijuana has been described as being subpar and disjointed, at best. After the fiscal analysis by the office of California Attorney General Kamala Harris was released, a Stanford Law class decided to draw up their own report analysis that outlines what the state should do to ensure that regulation, taxes and distribution of recreational marijuana is done properly.

The report, Analyzing Alternative Laws & Policies for Psychoactive Drugs Seminar, was presented by Stanford Law Professor Robert J. MacCoun’s law practicum. The report states that the intentions and the conclusions of the paper were not aimed at providing a recommended policy. The goal was to inform the public debate and highlight certain, important issues that might not have been otherwise widely recognized and understood.

The report covers three main areas: labor relations, regulation and taxation. While the nine students in the practicum did not adopt specific positions, they did draw some specific conclusions concerning these issues. For example, in their opinion, one of the most pressing issues is the tension that continues to build between federal prohibition and state legalization.

One of the proposed solutions is to regulate and enforce laws through a single, integrated agency. This agency can be an existing state organization or a newly formed independent commission. Another option is to enforce and regulate laws through utilizing the strength of multiple agencies. This conclusion was drawn from the troubled history California has with trying to regulate medical marijuana. The thought of a powerful, well-informed (preferably independent) agency regulating recreational marijuana is thought to be a step in the right direction.

The report when on to cite the numerous tax bases that are being utilized in Colorado and Washington where recreational marijuana is already legal. The pros and cons of a high and low tax rate were then examined. A high rate was felt to limit the negative consequences that are associated with marijuana consumption. On the other hand, it could limit the amount consumed. Too low of a tax rate could mean that the government cannot obtain a meaningful revenue. On the other hand, it could help to eliminate the black market.

With the possibility that a ballot initiative could be passed for recreational marijuana in November 2016, the race is on to answer these important questions and set up a structure in the state of California that works better for recreational marijuana than the structure for medical marijuana has been.

For the sake of the marijuana businesses, many are hoping that the divide between federal and state will be one of the first issues to be addressed. Entrepreneurs are struggling to even get their businesses started since banks are hesitant to offer merchant accounts with the regulations they must follow on the federal level. For now, businesses continue to turn to marijuana business funding as an alternative solution to their payment processing needs.

For Marijuana Business Funding contact us today!

The Fourth Corner Credit Union Denied Master Account by U.S. Federal Reserve

Posted on August 26, 2015 by admin

For some time, businesses have been waiting to see the outcome of The Fourth Corner Credit Union’s request for a master account with the U.S. Federal Reserve. The master account would allow the credit union to work with marijuana companies looking for a bank. However, The Fourth Corner Credit Union, located in Colorado, has been denied a master account by the U.S. Federal Reserve, despite having state backing; this threatens to close yet another avenue for cannabis businesses that are struggling to secure a bank account.

Before this denial, the Fourth Corner had lined everything up with the state of Colorado. Last November, it received a charter from the state while waiting for the National Credit Union Administration to sign off on insurance and for the Fed to issue a master account.

With this denial, The Fourth Corner Credit Union has filed a lawsuit in federal court that challenges this decision. According to the New York Times, the credit union says that it wants “equal access” to the financial system. This has become the latest in setbacks for marijuana companies that are looking for a bank to do business with.

Due to marijuana’s classification as a Schedule I drug, banks are extremely hesitant to do business with anyone in the industry. According to the Drug Enforcement Administration (DEA), Schedule I drugs, substances, or chemicals are “defined as drugs with no currently accepted medical use and a high potential for abuse”. As a Schedule I drug, marijuana is listed with heroin, lysergic acid and diethylamide (LSD), ecstasy and several others.

While medical and recreational use have been legalized in many states, it is still very much illegal on the federal level. Worried about what this might mean for them, banks refuse to work with marijuana companies. This has forced many of these companies to operate cash-only or to seek alternative means of funding and payment processing.

Thankfully, alternative providers have worked well for many marijuana companies. Medical marijuana merchant accounts by high risk providers have actually become more accessible than an account with a traditional source. High risk providers like Marijuana Merchant Account (MMA) have a simple, fast and hassle-free application process along with minimal documentation, unlike the experience of working with a bank.

In addition, if bad credit has ever been an issue for the business owner, a high risk provider is much better equipped to work with such an issue. High risk providers’ merchant accounts are tailored to meet the specific needs of an industry; thus, marijuana companies have been turning to such providers and applying for medical marijuana merchant accounts. Instead of waiting to see what the future holds, many companies are making things happen now by securing marijuana merchant accounts to ensure their business’ profitability.

For MMJ payment solutions contact us today!

The 5 Winning New York Companies Receive Their Medical Marijuana Licenses

Posted on August 26, 2015 by admin

In July 2014, New York Gov. Andrew M. Cuomo signed the Compassionate Care Act which also authorized the marijuana outlets. The Health Department called the decision on the issued registrations a “rigorous and comprehensive” review on prospective purveyors of the drug. At the end of July, the New York State Health Department named the five organizations that would be permitted to grow and sell the drug for medical use in the state; this includes in New York City.

Even with strict rules and precise regulations that were announced this past spring, the bidding for these licenses were incredibly intense. Forty-three companies submitted their applications in the hope that they would be selected. However, five, and only five, lucky companies would receive licenses. After the selections were announced, State Senator Diane Savino reassured the losers by saying, “To those who did not make the cut, stick around. New York is a very big state”.

Now that the licenses have been issued, the organizations will be registered with the state. Each of them has plans to open four dispensaries statewide. According to the requirements of the licenses, the organizations must be doing business within six months. For those with conditions that are in need of medical marijuana, this means that medical marijuana could be on sale in New York as soon as the end of the year.

The winning companies now have the challenge of cultivating the marijuana. Keeping in mind the large pool of potential customers, dispensaries have been planned for New York City; this includes the Queens, Manhattan and the Bronx. Etain, one of the winning companies, plans to grow the drug in Chestertown and sell the end product in Kingston, Syracuse, Albany and Yonkers.

The other winning companies have also revealed their plans now that they have acquired their licenses. Bloomfield Industries plans to grow in Queens and dispense the product in Manhattan, Nassau County and two other upstate counties. Empire State Health Solutions has stated that its manufacturing facility will be located in Albany and its dispensaries will be in Albany County, Queens and two other locations. Illinois-based PharmaCannis – abbreviated name is PharmaCann – will grow its product in Hamptonburgh, located in Orange County. Its products will then be dispensed in the Hunts Point neighborhood of the Bronx as well as Syracuse, Buffalo and Albany.

Even with these great milestones for medical marijuana, businesses are still struggling to secure the payment processing they need from banks to ensure their business’ profitability. Obviously, operating as cash-only is not a great option. Marijuana payment solutions through alternative providers has really become an ideal option for many marijuana companies. Application approval is much faster than a traditional source and the process is hassle-free and simple.

For the entrepreneur, time is money. Marijuana payment solutions allow businesses to skip the waiting, offer their customers safe payment processing and operate their business in an efficient and profitable way. Until medical marijuana is recognized at the federal level, alternative providers will continue to prove to be invaluable.

Need payment solutions? Contact us today.

Cannabis Trade Groups Adds Pressure to Improve Marijuana Bank Access

Posted on August 26, 2015 by admin

For the majority of medical marijuana companies, the entrepreneurs behind them wish to be completely transparent and viewed as a legitimate business. Because financial institutions are regulated on the federal level, most banks and credit unions have been reluctant to offer their services. Even though the business is legal, financial institutions still shy away.

Because of this, many marijuana businesses are forced to operate in cash-only. This is not only completely unsafe for the business, but it also makes it difficult for the owners to be transparent. The head of Oregon Banker’ Association, Linda Navarro, revealed to the Northwest Public Radio that many banks would be willing and even happy to offer their services, but the current federal barriers are just too great for them to manage at this point in time.

As a result, The National Cannabis Industry Association, a national trade group, is expanding its advocacy efforts on Capitol Hill. The purpose behind this expansion is to address the industry’s top federal priorities: fair federal taxation and basic banking services. In this effort, The National Cannabis Industry Association (NCIA) has partnered with two D.C.-based public affairs firms: Jochum Shore & Trossevin PC and Heather Podesta + Partners.

The NCIA Deputy Director, Taylor West, said that “Bringing on these two firms is a big step forward for us, but also a very real indicator of the fact that we as an industry are taking our legislative strategy very seriously. We recognize the benefits of bringing in highly skilled people who work in this environment”.

The regulatory structure that banks must follow has made it difficult for marijuana businesses. They are treated much differently than other types of legal businesses. The hope is that the teaming of these firms will be the answer to the industry’s needs in that it will revolutionize the way those in the sector do business.

While marijuana companies wait for the industry to grow and for improvements to be made, many companies are turning to medical marijuana payment processing from alternative providers. Providers such as Marijuana Merchant Account (MMA) specialize in offering accounts that are tailored to a marijuana company’s needs. A great advantage to this type of merchant account is that the application process is fast, simple and hassle-free. Until the pressure and regulations for banks are changed, medical marijuana payment processing will remain a great option for marijuana companies in need of payment processing.

Contact us for medical marijuana payment processing today

Medical Marijuana Bill is Slowed Down in the U.S. Senate

Posted on August 26, 2015 by admin

Many are disappointed in the amount of time it is taking to build support in the Senate for a medical marijuana bill. At the moment, it is not getting the backing it needs to advance before the August recess. While the bill has the support of influential Democratic senators, the bill needs more support from Republicans.

Two of these influential Democrats include senators Charles E. Schumer of New York and Barbara A. Mikulski of Maryland. The bill currently has two Republicans co-sponsors: Sens. Rand Paul of Kentucky and Dean Heller of Nevada. This bill would allow states to set their own medical marijuana policies by rescheduling marijuana.

Finding a third Republic senator has been extremely difficult. It would seem that any consideration in the Senate Judiciary Committee will be deferred until at least September. According to Sen. Rand Paul, while he admits that the process has been slow, he says that “we’re trying”.

So far, the bill is supported by sixteen senators. Cory Booker, D-N.J. and Kirsten Gillibrand, D-N.Y. are two of the original co-sponsors. More of the co-sponsors include: Barbara Boxer, D-Calif; Michael Bennet, D-Colo; Ron Wyden, D-Ore; Jeff Merkley, D-Ore; Tammy Baldwin, D-Wis; Brian Schatz, D-Hawaii; Tom Udall, D-N.M.; Martin Heinrich, D-N.M.; Angus King, I-Maine and Mazie K. Hirono, D-Hawaii.

While things have been slow in the Senate, progress has been moving a little faster elsewhere. Many senators have applauded the recent decisions that have been made by the Obama administration, which have been to deregulate medical marijuana research; thus, calling on more research.

In addition, Elizabeth Warren, D-Mass, is co-sponsoring a different bill that is sponsored by Jeff Merkley, D-Ore. This bill would allow legitimate marijuana businesses to use banks. Something marijuana businesses would rejoice over in light of how difficult it has been for these businesses to secure the funding and payment processing they need. At the moment, this bill is also stuck in committee.

Many feel that the fact that thousands of legal businesses are forced to operate on a cash-only basis is outrageous, since they do not have the support of traditional financial institutions. Because things are still moving so slowly, many businesses have turned to alternative sources of processing. Marijuana payment processing from providers like Marijuana Merchant Account (MMA), for example, has become the solution for many business’ processing needs.

Contact us for all your Marijuana Processing needs

ACH Check Processing Solution for MMJ Delivery Merchants

Posted on August 21, 2015 by admin

If you are a new marijuana business, it is extremely important that you have a proficient and flexible payment processing system. There are a variety of payment options available for merchants to utilize. MMA provides payment processing solutions like ACH (the Automated Clearinghouse) and iCheck to make payment easier for your customers and increase your profits.

MMA is the number one choice for merchants who want to expand their business and their profits by providing multiple payment methods. ACH is one of the most essential forms of payment processing for merchants. With their standard ACH check processing solution, merchants can utilize the phone/Internet. There are a variety of options offered:

Checks-by-Phone. Merchants can pay $25 per month to use your recording service to get a voice authorization from clients. There are no signatures required for this option.
iCheck. Facilitates faster funding. See funds from check sales immediately.
E-Signed PDF. Merchants can utilize services like Docusign or Echo Sign to collect signatures for the pdf electronically.
With signed PDFs, merchants send their customers a word doc or pdf to sign and return via fax or email.
Checks-by-Web. Customers can complete their orders using a secure website. Your customer must click to agree to terms and conditions.

iCheck is a type of electronic check processing that makes processing checks faster. It has way less restrictions than ACH. This flexibility makes Remote Deposit Capture (iCheck) ideal for many sales environments. iCheck is extremely flexible, allowing all check types to be accepted at Point of Sale and even when the consumer is not present. This is the future of check processing!

Funding is guaranteed.
Free online activity monitoring.
No consumer notification or receipt is required.
No check writer authorization requirement.
Fast electronic deposit of funds, in as little as 24 hour

Marijuana Merchant Account, is the online lender that gives marijuana merchants a variety of payment options like ACH marijuana check processing. Don’t miss out on this profitable payment processing method.

Contact us to learn more about fast, low hassle ACH processing today.

Setbacks for Marijuana Banking Shows Need for Federal Change

Posted on August 21, 2015 by admin

There have been quite a free setbacks for the cannabis industry lately, and it doesn’t seem as if state and financial institutions will be able to create a workable solution anytime soon.

Currently, 20 states along with the District of Columbia allow the sale of medical and recreational marijuana. But its production, sale, and possession are still illegal under Federal law.

Regulations state that banks are responsible for monitoring cannabis businesses and ensuring compliance with federal regulations. Financial institutions must also monitor and report any suspicious activity that merchants could be involved in, or report any unorthodox transactions. `

Due to these regulations, most banks have avoided doing business with marijuana dealers. Right now, some banks do serve cannabis companies, but they are generally smaller, local institutions that hide their affiliation with the marijuana industry.

Marijuana merchants are hopeful that larger financial institutions will be brave enough to throw their hats into the rink, yet another roadblock has delayed this hope. Last month, the U.S. Federal Reserve Bank of Kansas City denied a Colorado credit union a master account. Plus two major banking institutions that went public with plans to carry cannabis accounts – reversed course earlier this year. Both First Security Bank of Nevada and Oregon’s MBank have closed all cannabis accounts.

Still there are other efforts to bring banking services to the industry. The state of Nevada is trying to create marijuana-focused “thrifts,” while California is pushing for a state-run bank.

Despite these efforts, many in the cannabis industry are even more convinced that not much will change unless the federal government reschedules marijuana or passes laws to concretely protect financial institutions that want to work with marijuana companies.

Marijuana Merchant Account (MMA) offers a variety of marijuana payment processing options that enable you to stop cash only policies, and accept a variety of payments like debit cards, credit cards, checks, and more. Don’t wait to expand your customer’s payment options, and don’t wait on the federal government or courageous bank for a merchant account.

Contact us to open a marijuana merchant account today

TV Ads Still a No Go for Cannabis

Posted on August 21, 2015 by admin

The first television ad for recreational marijuana was produced this month, but was yanked at the last minute due to legal concerns. The ad for Neos, a producer of cannabis vaporizers and oils, was supposed to air in Denver, Colorado. The spot shows young adults partying in clubs and in nature and states, “You lead an adventurous life, always finding new ways to relax.” The spot ends with a group around a camp fire and the slogan, “a bold new way to unwind. Neos, recreate responsibly.” Even though the ad does not show cannabis or any type of paraphernalia, the federal government still considers pot illegal, therefore the spot was not allowed to air.

Pot has been legal in Colorado for a few years, yet legal cannabis operations are still not allowed to advertise their products on the medium that will reach the most potential customers. This isn’t the first time, nor will it be the last, that state’s rights have butted heads with federal regulations. Recreational marijuana is legal in Colorado, Washington, Oregon, Alaska, and D.C. And 20 more states have legalized medical marijuana. Still this disconnect between federal and state laws has created a variety of problems for advertising and for banking.

Despite the fact that the Obama administration has pledged not to interfere with individuals or institutions that consume or sell cannabis legally, many banking institutions are still leery of opening cannabis merchant accounts due to heavy liability if merchants conduct illegal practices.

Marijuana advocates believe it is just a matter of time until the federal government decriminalizes or legalizes at least medical marijuana nationwide. After all, this July the Canadian Supreme Court ruled that medical marijuana was legal in both consumable and inhalable forms. The ruling was a huge win for individuals who prefer to consume marijuana in less invasive forms like through food or candy.

If your state has legalized recreational or medical marijuana, you will still be cut off from important avenues of advertising. This means that you must depend on other avenues to increase profits. Choosing the right payment processor can make all the difference. With access to a recreational or medical marijuana payment processor, merchants can process checks and credit cards. MMA is that payment processing solution.

For fast and dependable marijuana merchant accounts, contact us now.

California is Wanting a Marijuana Bank

Posted on August 21, 2015 by admin

Banks are everywhere, and most of us have an issue with our bank at one time or another. However, for legalized marijuana merchants in California, these issues are never-ending. From finding a business account, to the fear (and reality) of having that account closed without notice, Californian marijuana merchants are in a mess when it comes to finding and keeping a bank account. While the idea of a marijuana bank is great, in the long-term it may face issues. The main issue is the Fed.

The Federal Government is an issue because 1) the regulate the banking system, and 2) marijuana is still illegal in the Fed’s eyes. Yes, even though so many states have some form of legalized marijuana, it is still a federal crime to possess it. Because of its federal illegality, banks are not wanting to deal with these business. However, a cash-only business is hazardous, as there is no way to verify or recoup the funds if stolen. Cash-only businesses are at a higher risk for burglary, and sadly, it happens often. While the industry as a whole is at a higher risk of being robbed, those who advertise that they are cash-only have put a target on their backs.

Instead of all of this chaos, marijuana merchants need to search for a medical marijuana payment processing account. Yes, it is possible to find a legal payment processor for the marijuana industry. While banks are tightening the reigns on who they will, and will not, work with, the marijuana payment processing industry is picking up the slack. There are many who claim to be educated and experienced in the industry, so be sure to do your research. Not all are created equal, and even processing fees can vary with each processor. Processing fees are huge, and high processing rates can sink a new or struggling company. However, before going with the processor with the lower rates, check around and do not rush. Be sure to do your research before signing on with a marijuana payment processor, as this is one of the most important things you will invest in for your business.

For Medical Marijuana Payment Processing, contact us today!

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Author Archives: admin

Cautious Bankers Weigh Risk vs. Profit – MMJ Merchant Account

Plans for Recreational Marijuana Regulations in California Begin

The Fourth Corner Credit Union Denied Master Account by U.S. Federal Reserve

The 5 Winning New York Companies Receive Their Medical Marijuana Licenses

Cannabis Trade Groups Adds Pressure to Improve Marijuana Bank Access

Medical Marijuana Bill is Slowed Down in the U.S. Senate

ACH Check Processing Solution for MMJ Delivery Merchants

Setbacks for Marijuana Banking Shows Need for Federal Change

TV Ads Still a No Go for Cannabis

California is Wanting a Marijuana Bank

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