Senate Committee to Hold Hearing on Bill Allowing Medical Marijuana in Oregon

Posted on February 13, 2014 by admin

It has recently been announced that the state Senate Judiciary Committee will be holding a public hearing on the proposal to allow local governments to regulate medical marijuana dispensaries. The Association of Oregon Counties and the League of Oregon Cities are keen to push for the legislation, but have proposed a couple of amendments to the bill. These include the prohibiting of dispensaries within 1,000 feet of a pre-school, and also adds some regulation on the sale of marijuana-infused products that might come across as being “attractive to kids”. Either way, the fact that local governments are close to being able to allow the dispensaries is sure to be very good news for anyone in Oregon with a medical marijuana merchant account.

However, the Senate Bill 1531 will allow cities and counties to regulate or restrict the operation of medical marijuana facilities, prohibit the registration of facilities and/or regulating the storage of marijuana. These changes will be effective on March 1^st, which is two days before the state will begin to register the medical marijuana facilities. Rob Bovett, the legal counsel for the association, says, “The proposal is about local control of a virtually unregulated new marijuana business.” He also stated that the Oregon medical marijuana dispensary program will be the most unregulated program in the nation.

Basically, the bill is clarifying local government authority to regulate marijuana dispensaries by using police powers and existing land use. It will protect local governments from expensive lawsuits. The proposal allowing local regulation is supported by many, including the Association of Chiefs of Police and the Associated Oregon Industries.

In conclusion, local control has been an ever-changing issue since lawmakers in Oregon passed a law last year that created a registry of medical marijuana dispensaries – a thriving but very unchecked industry in the state itself. Cities like Medford have taken steps to restrict or prohibit dispensaries, but Peter Buckley, a sponsor of the original dispensary bill, said that medical marijuana patients should have access to the drug no matter where in the state they live, and that “cities like Medford will get over it in time.” Only time will tell.

Colorado’s Recreational Cannabis Shops Make Millions

Posted on February 12, 2014 by admin

Colorado drew worldwide attention at the beginning of the year when marijuana use became legal, and a swarm of retail marijuana stores opened their doors to the eager public. Although the true figure of the shops’ earnings are not yet known, it has certainly been made clear by numerous indications that they have made an impressive sum of money; enough so that those with marijuana merchant accounts are bound to be very happy indeed.

Earlier this week, NBC surveyed many marijuana retail stores in Colorado, and reported that 18 retail shops paid over $1.2 million in taxes to the state through January 27^th. Clearly, this means that in only their first month of business, these stores made millions of dollars’ worth of sales. Not only this, but according to shop owners, the demand in their recreational cannabis stores is still growing by the second. Plus, NBC made the estimation that the state could potentially collect approximately $100 million in cannabis taxes in 2014 alone. This would equate to hundreds of millions of dollars’ worth of sales.

Many shop owners were present at the National Cannabis Industry Association reception in Denver this week, a lot of whom happy to share their personal opinions on the matter. One owner said that his store, which was opened to the public a mere fortnight ago, had seen sales rise by 300% compared to its medical marijuana revenue before the transition. Another, who opened his store on January 1^st, said that his store has to be closed for a few days per week due to his inventory rapidly running out. Despite this, the store’s revenue has still increased nearly tenfold compared to medical marijuana sales prior to the legalization of recreational marijuana use in Colorado. If this doesn’t signify the sky-high demand, what does?

Although many shop owners are experiencing this amazing revenue in the short space of just a month, it is important to take into account that stores in small mountain areas of the state are probably taking in much less revenue. Plus, the NBC survey results serve purely as an estimate, considering that there are no true statistics on the matter at this present moment in time. Still, it remains probable that Colorado’s recreational marijuana market could still approach $500 million in just its first year.

Farm Bill Signed by President Obama, Deeming Industrial Hemp Research Legal

Posted on February 12, 2014 by admin

Vote Hemp, the United States’ leading hemp advocacy organization is pleased to announce that President Obama has signed the Farm Bill, which essentially is amending the legalization of hemp production for research purposes. State Agriculture departments, colleges and Universities are now permitted to grow hemp for academic and agricultural research. This is fantastic news for the hemp industry.

The amendment was originally introduced by representatives Jared Polis (D-CO), Thomas Massie (R-KY) and Earl Blumenauer (D-OR), and applies exclusively to states in which industrial hemp farming is already legal under law. So far in the 2014 legislative season, the legalisation has been introduced or carried on in the states of Arizona, Hawaii, Indiana, Nebraska, Mississippi, New York, New Jersey, South Carolina, Oklahoma, Tennessee, Washington, Wisconsin and West Virginia. Not only this, but 32 states have introduced pro-hemp legislation and 20 have passed pro-hemp legislation. Clearly, these impressive figures show that the actual legalisation of industrial hemp is supported by many, and the figures are very likely to just keep growing.

Senator Mitch McConnell worked hard to strengthen the hemp research amendment at the committee process of the Farm Bill conference, as did ‘Vote Hemp’ President, Eric Steenstra. He said, “With the U.S. hemp industry estimated at over $500 million in annual retail sales and growing, a change in federal law to allow colleges and universities to grow hemp for research purposes means that we will finally begin to regain the knowledge that has been lost over the last fifty years.” He also stressed that it is the first time in American history that industrial hemp has been officially differentiated from the drug varieties of Cannabis. Therefore, the market opportunities for hemp are highly promising. “This is not just a boon to U.S. farmers, but it is a boon to U.S. manufacturing industries, too.” Eric says.

Not only has the Farm Bill been signed, but two more industrial hemp bills have been introduced. The “Industrial Hemp Farming Act of 2013” was introduced in the U.S. House in early February of 2013, and its companion bill, S.359 was introduced in the U.S. Senate shortly after. The bills define industrial hemp and separate it from the definition of ‘marihuana’ in the Controlled Substances Act (CSA). Also, they give states the authority to regulate the growing and processing of the crop. If these bills are passed like the Farm Bill, they would take away federal restrictions on the cultivation of industrial hemp. With the way things are going after the signing of the Farm Bill, the passing of these two bills does not seem unlikely at all.

President Obama’s authorization and the generally positive reaction from a variety of states towards industrial hemp legalization signifies the progress of hemp in the United States. More and more people are becoming aware of the potential benefits from the legalization, particularly the endless amount of market opportunities for hemp. Watch this space.

U.S. Attorney General Gives the Green Light for Banks to Process Legalized Marijuana Money

Posted on February 12, 2014 by admin

The Obama administration will soon announce regulations to make it easier for banks to do business with legal marijuana sellers, Attorney General Eric Holder said Thursday. This is fantastic news for the many businesses that searching for a marijuana merchant account.

Holder did not specify whether the rules would apply only in the states that have broadly legalized marijuana, or also to states that have legalized it for medicinal use. In August 2013, the attorney general announced the Obama Administration would not seek to overturn the Colorado and Washington state measures. He said federal drug agents would continue to leave most drug law enforcement to local authorities and would focus on large drug operations, setting priorities that appeared to make it unlikely the feds would engage in aggressive enforcement in the states that have legalized pot.

The federal banking accommodation, being worked out jointly by the Justice and the Treasury departments, comes in the wake of decisions by voters in Colorado and Washington State to legalize the sale and possession of pot. The moves have created legal tensions, since marijuana remains illegal under federal law. One particular problem has been the refusal of banks and merchant account services to deal with legalized marijuana businesses out of fears they will be accused of violating money-laundering laws. This fear is now in the past. Even so, it can still be hard to find a marijuana merchant account provider, since these businesses are classified as “high risk”. This is not necessarily a shameful thing, and it is not something that the average customer will know about to judge. It simply means that your business is at a higher risk of failure in comparison to other businesses.

Many marijuana merchants will find that the majority of merchant account services that will accommodate their company have higher fees. While this seems to be the norm, with dedication and research you will find that there are companies that cater only to “high risk” merchants, and these processors tend to have more streamlined fees.

The legalized marijuana craze is a great way to break into the small business industry. Thanks to Attorney General Eric Holder’s statement that banks would not be penalized for accepting funds from these businesses, it is now easier to find business bank accounts, as well as merchant accounts. However, finding a marijuana merchant account service is still tricky, so be sure to research each company thoroughly before deciding.

Credit Card Companies & The Cannabis Industry – An Evolving Process

Posted on January 23, 2014 by admin

It has emerged recently that credit card companies are beginning to allow customers to purchase cannabis with credit cards in recreational marijuana stores. This action certainly marks a significant change, because in previous years, credit card companies have been strongly against working with the cannabis industry. This article will discuss the evolving relationship between credit card companies and cannabis businesses.

It has been said that the reason behind the recreational marijuana stores in Colorado allowing credit card transactions from its customers is primarily down to Visa and MasterCard’s decisions to not enforce their own rules. This may have sparked from the August 29^th Cole Memo in which the government said it wouldn’t pursue criminal charges against companies working legally within state laws. Taking this into consideration, is it possible that credit card companies are becoming more lenient towards the cannabis industry because of the government’s ever-developing tolerance towards it?

Another factor to take into consideration when thinking about the relationship between credit card companies and cannabis businesses is the increase of marijuana merchant accounts that are readily available to many businesses, just like the recreational marijuana stores in Colorado, as a significant example.

Although the federal government still consider cannabis as being ‘illegal’, they have certainly loosened their grasp on this law over the years. The law itself still stands, but the government have begun to rely on local bank acquirers to determine whether a transaction is illegal or not. Visa said in a statement to the Wall Street Journal that it does still follow the rules made by the federal government, which actually considers the cannabis situation to be ‘an evolving legal matter’.

Despite the almost lenient attitude these days towards cannabis businesses in the USA, from both credit card companies and the federal government, it’s still definitely a work in progress. Lance Ott of Guardian Data Systems has said that he does not believe the credit card companies are changing their attitudes at all, but are instead allowing marijuana business take advantage of any loopholes they can find. Despite this, the situation is certainly less strict than it has been in the past, and this only proves how accepting the world is becoming towards marijuana use.

To stay more connected to the Cannabis Industry make sure to visit THC Biz

The Future’s Looking Bright for the Cannabis Industry

Posted on January 23, 2014 by admin

Many businesses with marijuana merchant accountsare sure to be happy with the way 2014 started. Shares of public cannabis companies enjoyed serious gains on the first day of trading, since recreational marijuana stores were successfully launched in the state of Colorado. Many stocks rose at least 20% above their 2013 closing price, a few surged to more than 60% and one touched a whopping 80%. This shows a significant contrast to the bigger stock markets, which surprisingly dipped into the red.

This evidence certainly sparks lots of optimism where the cannabis industry is concerned, and has produced lots of excitement about its potential future. Many investors predict that the marijuana laws from state to state will only become more lenient and cannabis businesses are definitely thrilled at this prospect, because they know that they will benefit from this highly. Colorado’s recreational cannabis stores experienced sky-high demand after their launch, which just goes to show that marijuana businesses have every right to be excited!

Not only this, but the recent “cannabis chaos” has signified that Colorado is not the only state to become less strict on marijuana laws. Senator David Zuckerman has recently introduced a bill to legalize and regulate the sale, production and use of marijuana in Vermont. Although he has said that the legalization will not occur this year, it is still his primary goal, and he will keep building and studying the idea until he achieves it. This bill shows how the recent legalization in Colorado is influencing other states to perhaps follow in their footsteps.

Overall, the above evidence certainly shows how bright the future looks for the cannabis industry, particularly those with marijuana merchant accounts. It suggests that states are perhaps changing their views on the legalization of cannabis, especially since Colorado’s move to launch recreational marijuana stores. With this and the spreading use of medical marijuana, it is obvious that the USA is realizing what it can gain from its legalization. Watch this space.

Credit and Debit Card Processors Ease Rules for Recreational Marijuana

Posted on January 23, 2014 by admin

Many of the recreational-marijuana companies are claiming to be unbanked. However, many of these stores are able to process other payment methods besides cash with the use of marijuana merchant accounts.

Customers where surprised when they learned they didn’t have to rely on cash as a method of payment when purchasing their cannabis. From the start Visa and MasterCard stated that they had the policy that no illegal transactions were being completed in their systems. However, they have softened when it comes to this policy and are now stating they are leaving it to merchant banks to decide what the definition of illegal will be.

In a recent statement Visa says, “In offering our payment service, Visa adheres to the rule of law and seeks to prevent our network from being used for unlawful purposes.”

The major credit card company backed off last year when the federal raids in California and Colorado were going on with the suspected medical marijuana businesses. This made it where the cards could not be used for medical marijuana purchases since September.

Federal regulators have given a firm guidance to bankers in lieu of offering marijuana merchant accounts to marijuana based businesses. However, these services are not being provided until the onus has been lifted by the government.

Many of the businesses selling recreational marijuana have claimed that they are unable to receive marijuana merchant accounts yet they have teller and credit-card machines that are operating in stores. In order to operate these machines they must have a bank account or merchant account. ATM networks do not use Visa and MasterCard but they still require a bank account in order to credit transactions.

marijuana-merchant-account.com can help you set up your MMJ merchant account Today!

Approximately 348 Marijuana Licenses Handed Out in Colorado

Posted on January 23, 2014 by admin

The state of Colorado handed out the business licenses to Cannabis Companies for the first time. The enforcement division announced approximately 348 licenses were given out in the state of Colorado. 270 of the 348 licenses were handed out to businesses in the region of Denver, Colorado. The 348 licenses include 178 cultivation facilities, 136 retail businesses, 31 manufacturing Companies and 3 test facilities. No other state has given out the licenses for businesses that ultimately produce the marijuana.

Marijuana sales are also expected to boost as the licenses are handed out to businesses. The city of Denver and the Department of License and Excise approved 42 retail stores in the region. The current requirement to receive a marijuana license is that businesses should have an “existing” status. Everybody else will be considered late in the year of 2014.

Existing marijuana Companies will have 3 options that will be available:

Convert recreational sales for people 21 and over.
Sell the recreational and medical marijuana to people 21 and over.
Procure a “co-location” license which will allow the business to sell cannabis to people 18 and over.

Only a small fraction of cannabis businesses actually opened up on January 1^st but many are expected to open up weeks and months after the 1^st day of January. Many people are against and for the recent licenses handed out in the state of Colorado. Proponents of marijuana pinpoint the relaxing effects and the medical benefits. People against marijuana pinpoint the negative effects of using drugs such as the increase of procuring medical conditions.

Does your dispensary need a merchant account? Let us help!

$100M Being Sought by Private Equity Fund

Posted on January 23, 2014 by admin

Two executives from High Times have launched a private equity fund and they are attempting to raise $100 million to allow for investments in cannabis companies. The HT Growth Fund has plans to make individual investments of $2 million for marijuana merchant accounts in ancillary companies. These companies, however, do not actually handle any marijuana.

The purpose of these marijuana merchant accounts will be to look for businesses that are established and have reached growth limits. These will be businesses with no access to the traditional capital markets. Instead they will be startup businesses that need assistance with early stages of financing. Five years is the average exit time.

This fund is being run by Michael Kennedy and Michael Safir both of which who have ties with High Times Magazine. If the two are successful then this will make HT Growth the largest funding source in the industry. Some difficulty will lie ahead because many of investors are unsure about providing funds for the cannabis industry.

Kennedy has been with High Times since the 1970’s and has served as both general counsel and director. He runs a law firm that is located in New York City. In addition, he is also a major investor with the company that is owner of the magazine. Safir has been business manager for High Times since 2010.

Additional cannabis-focused investment groups and funds have started forming due to the climate improving daily. Plans by the federal government to being hands-off with marijuana businesses will also serve to have investors more willing to fund these businesses that are starting up.

Marijuana merchant accounts are set up for businesses that sell medical marijuana and need to process credit card payments as well as debit card payments.

Need a Marijuana Merchant account? Sign up below

Into the Unknown: Pricing Recreational Cannabis

Posted on January 7, 2014 by admin

On January 1^st recreational marijuana became available for retail purchase in the state of Colorado. From a business standpoint, this is uncharted territory. Recreational marijuana is a completely new sector leaving business owners interesting decisions to make regarding pricing. With a limited supply a massive demand expected, how cannabis is priced can make or break a marijuana dispensary in under a month’s time.

Setting a price for an uncharted market is difficult enough, yet with the peculiarities of supply and demand for this industry in Colorado business owners are navigating truly uncharted waters. All indications seem to forecast a massive demand and a very limited supply. This means that marijuana dispensaries have to walk a knife’s edge on pricing. Price cannabis too high and you will send potential long-term customers into the arms of competitors. Price cannabis too low and you can run out of inventory in the blink of an eye and be forced to close or ration your product.

Pricing strategies are pivotal, especially in the early months before businesses can begin pumping out their own production of cannabis. There are three basic pricing strategies dispensaries can take in the early months once recreational marijuana is open for retail:

1) Begin by taking the prices from medical cannabis and increasing them slightly. This will serve as your baseline that you can tweak depending on the market which may be shifting and changing on a daily basis. Customers then pay the hefty taxes on top of the retail price, taxes that come out to substantial 36%.

2) Bank on a huge demand and low supply and double or triple the price of medical cannabis. This will create early positive cash flow and may protect your inventory. Yet, price too high and you can bottleneck sales and send potential customers to competitors or back to the black market.

3) Absorb some of the taxes to create a competitive advantage. The idea here is to make deals for your customers to create loyalty. By absorbing some of the fees from the heavy 36% tax you can modulate pricing freely while still cutting your customers a break.

Marijuana dispensaries don’t have anyway to forecast the pricing storm that will engulf the market during the early months. While the opening of recreational marijuana will make for a fascinating case study in supply and demand for economists, that will offer little comfort to business owners. Market fluctuations on a daily basis and a severely limited supply will govern prices and the reactions of customer demographics will be critical to monitor regarding their preferences in price, tax duty, or whether they return to the black market until prices stabilize and supply becomes regular.

Get your Marijuana Merchant Account Approved by contacting us TODAY!

Company :
Name :
Email :
Phone :
Time Zone :
Volume :
Type :

Category Archives: Marijuana Merchant Account

Senate Committee to Hold Hearing on Bill Allowing Medical Marijuana in Oregon

Colorado’s Recreational Cannabis Shops Make Millions

Farm Bill Signed by President Obama, Deeming Industrial Hemp Research Legal

U.S. Attorney General Gives the Green Light for Banks to Process Legalized Marijuana Money

Credit Card Companies & The Cannabis Industry – An Evolving Process

The Future’s Looking Bright for the Cannabis Industry

Credit and Debit Card Processors Ease Rules for Recreational Marijuana

Approximately 348 Marijuana Licenses Handed Out in Colorado

$100M Being Sought by Private Equity Fund

Into the Unknown: Pricing Recreational Cannabis

Get Approved!