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Yet Another Bank Backs Out of the Medical Marijuana Industry

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imgresWith federal regulations being so strict in the medical marijuana industry, it’s incredibly difficult for marijuana businesses to work with banks. This leaves them with few choices such as dealing with cash transactions only. This comes with several complications and reduced profits.

The First Security Bank of Nevada has been working in the medical cannabis industry for over a year and has just recently decided to back out of the industry. With incredibly strict federal regulations, it was more a burden than it was profitable for them, causing them to exit the business before losing any more money.

Although over 23 states in the US have legalized the use of medical marijuana, the federal government is making it increasingly difficult for banks to work with dispensaries. With such foggy regulations and complex paperwork, most banks that are actually willing to attempt working with the industry find it to be more troublesome than it’s truly worth.

Medical Marijuana Payment Processing

When dealing with cash only, many risks arise. One of the biggest risks is transportation of the funds. Although most dispensaries work with high security transportation businesses for carrying the cash, some are still not capable of affording such a luxury. This makes cash transportation extremely risky.

Another downside is loss in profits. Not every patient can pay in cash, causing many patients to avoid buying medical marijuana altogether.

Fortunately, medical marijuana payment processing solutions are available. With high-risk payment processors such as MMA, dispensaries can in fact work with offshore banks to deal with transactions. Not only does it allow these businesses to increase their profits, but it also adds incredible amounts security.

Getting a medical marijuana payment processing account allows dispensaries to accept credit card payments and use the profits other than in cash only. It essentially allows marijuana businesses to experience the same amount of comfort as any other business.

An additional benefit is that merchant processors such as MMA provide merchants with mobile card readers. With most medical cannabis patients being quite ill and unable to physically go to dispensaries with ease, this is a huge perk. It provides dispensaries with the ability to make home deliveries. Getting a high-risk merchant account is the best solution available at the moment and far surpasses dealing with cash transactions only.

Contact us to get setup with Merchant Solutions for your MMJ business today!

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Hawaii on the Verge of Opening 16 Medical Marijuana Dispensaries

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MedicalPotMany states have already taken a leap into the world of legalizing medical marijuana and Hawaii is the next to be added to that list. The House Bill 321 was passed by the full house on May 7th, which means the Governor is the only person needed to approve it now.

The bill basically allows for 8 licenses to be handed out. Each license allows for 2 dispensaries and 2 production facilities for a total of 16 dispensaries and 16 production facilities. This is a huge step for Hawaii that would be paving the road to full legalization of marijuana in the state.

Licenses come with hefty fees

Although the licenses are great news for entrepreneurs who want to take part in the start of a medical marijuana revolution, they also come with hefty fees. Applying for a license costs $5,000, which is non-refundable. With only 8 spots available, this means risking $5,000 for potentially getting denied.

In addition to the application fee, each dispensary will be required to pay an initial $75,000 fee for the license and another $50,000 every year to renew the license.

This means businesses in the marijuana industry will have to be quite successful simple to pull a small profit. With most banks refusing to work with cannabis businesses, this leaves them with a cash-only way of doing business.

Marijuana payment processing

Fortunately, there is an alternative method available for marijuana dispensaries; high-risk merchant accounts. Marijuana payment processing with high-risk merchant accounts allows cannabis dispensaries to accept credit card payments. This also allows them to deposit the funds and use them other than in cash only.

Payment processors such as MMA allow cannabis dispensaries to move forward and increase their income potential by accepting credit card payments. This also opens the doors for setting up home deliveries, which is greatly needed for many patients who suffer from sever illnesses. With mobile card readers and the ability to accept credit card payments, marijuana payment processing really saves the day for cannabis dispensaries seeking to get out of the cash-only way of running their business.

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Banks Remain Cautious When Dealing with Medical Marijuana Deposits

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Geschftsmann, Balance, Seile - IllustrationMedical marijuana is definitely becoming a more mainstream discussion with over two dozen states legalizing its use. However, it still remains illegal on a federal level, making it incredibly difficult for medical cannabis businesses to push forward. Dealing with banks is nearly impossible since no bank wants to deal with the risks of federal legalities. This leaves cannabis businesses with very few options.

A cash-only way of business remains the most common way for marijuana businesses to accept payments. This requires patients to physically go to marijuana dispensaries and pay in person, which is often difficult for patients who are dealing with life-threatening illnesses.

At the moment, roughly 200 banks in the entire USA are willing to work with cannabis businesses. This is an incredibly small amount, especially when you consider how complicated it is to get accepted to begin with. However, for a medical marijuana business to push forward and make a considerable amount of profits whilst increasing customer satisfaction, being able to accept credit card payments is a must.

Medical Marijuana Payment Processing

Some merchant processors such as MMA work with offshore banks that specialize in getting marijuana businesses approved for merchant accounts. These merchant processors make it easier than ever for cannabis businesses to accept credit card payments and increase their profits. Not only does it allow medical marijuana businesses to increase profits, but it also allows for a greater amount of customer appreciation.

Most medical marijuana patients are suffering for intense illnesses that make it nearly impossible for them to leave their homes. With medical marijuana payment processing, you can often benefit from a mobile card reader, allowing you to make home deliveries.

This is without a doubt, a game changer in the world of medical marijuana sales. It provides businesses in the marijuana industry with the ability to accept payments online, to get paid via credit cards in person and even make home deliveries. It also allows cannabis businesses to step into the 21st century and move out of the cash-only way of doing business.

As time goes on, these medical marijuana payment processing options will grow. With the potential to accept payments online comes the ability to make payments through mobile phones and even tablets. The options are limitless, and medical marijuana will become easier to get for patients than ever before.

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Top 5 Things to Avoid in the Marijuana Industry

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medical marijuana payment processingOver the last few years, there has been a lot of chatter and legislation about the marijuana industry. As an increasing number of states have decriminalized marijuana, more companies that grow and distribute the drug have cropped up. But as with the growth of any legitimate enterprise, there has been an increase in the number of scams and amateur organizations that have given consumers misinformation about marijuana and have fleeced new marijuana enterprises.

Marijuana Real Estate Agent – Agencies locating commercial properties for marijuana growers has become a new niche. Unfortunately, very few realtors are to be trusted, nor do they know state and local laws relevant to commercial cannabis use. Sometimes realtors act as advocates for marijuana businesses, but their goal is really to gouge as much money out of cannabis tenants as possible.

Publicly Traded Companies – Beware of investing in publicly traded cannabis companies. Very few of these companies are profitable or clean. Do extensive research before handing over money to management companies.

Management Companies – Many marijuana merchants have a difficult time running their businesses because traditional financial institutions refuse to supply them with merchant accounts because of liability issues. As a result, some organizations become desperate and run their money through a management company to set up their bank account. This strategy is dangerous and criminal, as banks often eventually realize their accounts are fraudulent. This discovery can lead to federal charges of laundering.

Find the Right Representation – Do not hire criminal lawyers to be marijuana business lawyers. These are two completely distinct areas with different processes. One is settled in court and one is typically done in a business setting.

Be Wary of Regional Trademarking – Your brand is your most precious commodity and must be protected. Too many lawyers are claiming that your trademark will carry and be lawful in other states. This is not true. To be assured that you are protected anywhere, apply for a federal trademark for your marijuana products or a state trademark.

Don’t resort to tricks, illegal activity, or leave your business in the hands of amateurs or crooks. The experts at MMA can provide comprehensive marijuana business funding, account management and more. We have been helping legally operating marijuana merchants with payment processing for over 10 years.

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To Access Banking, Marijuana Merchants May Have to Build Community Relationships

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STANLEY BROTHERS GROW FARMFor marijuana businesses that are looking for access to banking, the solution may be in building relationships with local banking institutions. Despite recent promises by the United States government not to interfere with the interactions between legal marijuana companies and banks, most financial institutions are still hesitant to work with them. This has made even the most successful marijuana merchants mostly cash enterprises. However, some marijuana merchants are gaining access to traditional merchant accounts through forging relationships throughout the community.

Cannabis companies like Mindful in Colorado, have acquired merchant accounts with banks by being active in the community. Mindful markets itself as a wellness centered business, and promotes the wellness benefits of Cannabis throughout the community. Mindful executives also familiarize themselves with zoning laws, and build relationships with local officials. A focus on the political aspects of the marijuana business is greasing the wheels for many marijuana businesses. Lobbying and educating legislators about the drug, is leading to proper and constructive regulation of marijuana is some parts of the U.S. This in turn lessens the threat posed by federal authorities on law-abiding cannabis operations.

This interaction with legislators may have worked. Last year, the U.S. Justice and Treasury departments issued guidance on how banks could legally interact with marijuana merchants, however some banks still feel like they have too much liability if things go wrong.

Banks aren’t the only ones who are nervous about doing business with marijuana merchants. Major credit-card companies are refusing to deal with them until more universal regulations are in place, and the threat of federal prosecution no longer looms over the industry.

As a result, many businesses keep large sums of cash on their premises, making them and their customers targets for robbery. Adding to the burden is the fact that businesses are penalized for paying taxes in cash, which cannabis companies must do.

Some marijuana merchants are turning to venture capitalists for funding, while others are masking their merchant accounts as health care companies in order to gain access to payment processing. MMA provides competent and comprehensive marijuana payment processing for entrepreneurs trying to increase the profits of their business. Contact us today to see how MMA account managers can give you access to the payment options you and your customers deserve.

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Legalize Marijuana? Former DEA Agent Now Says Yes

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DEAProponents of the mixed debate to have recreational marijuana legalized in the US state of Arizona have got a shot in the arm from an unlikely source. A former special agent of the state’s Drug Enforcement Administration who spent six years of his career convicting felons of the act of using marijuana now says the use of the drug should be recognized.

The officer who served as the DEA’s New Mexico and Miami Marijuana Coordinator has now gone vocal in favor of a legislation that would orchestrate a complete free program of recreational marijuana in the state of Arizona.

From his several years spent fighting the use of illegal drugs including marijuana, the former law enforcement officer has had a change of thought arguing that he had time enough to see injustice in the system. He has faulted the law against marijuana saying that it has destroyed the lives of many young and brilliant persons.

The agent who is currently a member of a movement known as Law Enforcement Against Prohibition (LEAP) has argued that as an officer he was bound to do things he did not personally agree with. In his position he had to enforce the law as that is what his job demanded. So he had to put up with some hard times in the job. His about-face is seemingly his way of righting the wrongs he might have unwillingly stood for. The strict marijuana laws, according to him, have ruined lives and so need to change.

The use of marijuana is widespread in the United States among teenagers and the youth or young adults.  Annual surveys in the country concerned with the drug use have indicated a rising trend in the use of this drug despite the very strict rules against the cannabis sativa.

Students in their early grades are found to be addicted to the drug. Those who are caught face the full arm of the law and get their lives at crossroads. These are some of the concerns that have been dominating the debating platforms where contenders are pushing for the legalization of the drug in the country.

Some strong arguments for the legalization of marijuana are supported by the medical side of the weed. These people wonder why the state would spend so much cash on medicinal drugs every fiscal year yet a powerful drug like marijuana whose health benefits are well known remains prohibited.

Now it remains to be seen if the proponents of the legalization of the recreational marijuana will have their way. If this happens, the impact of the legalization is likely to be felt in the nation’s economy and dealers will have to contribute taxes through their marijuana payment processing systems. At the end the nation’s economy will directly benefit from the drug.

If your dispensary needs Marijuana Payment Processing, contact us today.

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