Tag Archives: marijuana payment processing

Retail Marijuana Sales May Start Early in Oregon

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Oregon sign with marijuana leafOregon merchants and consumers, rejoice! There is a chance that retail marijuana sales may start early – in fact, one year early. While there was a 15 month hold for retailers, the state may waive the hold, and sales may start as early as October 2015. This isn’t far away, and if you are a merchant, this is great news.

However, there is first the issue of who can sell legalized marijuana in Oregon. If signed by Gov. Kate Brown, the bill, SB 460, would allow licensed medical marijuana dispensaries in Oregon to sell limited amounts of marijuana to customers that are over the age of 21 as soon as October 1, 2015. The bill that legalized recreational marijuana, Measure 91, stated that the Oregon Liquor Control Commission would not start accepting commercial retail license applications until January 4, 2016. This is a big difference, but regardless of what type of legalized marijuana merchant you want to be, you need to begin the steps to legally sell the product.

While obtaining licenses and permits of the state and local level is imperative to a good start, you also need to be sure that you thoroughly check out all of your employees. In fact, check them out before they are employees. While asking questions during an interview sometimes heed the answers you need, you need to do background checks. Yes, this is costly, but thankfully there are websites you can go to do a free preliminary search to check out your employees. I’m not talking about Facebook, but rather local court websites. Most have an online docket where you can look up a person and their criminal (or civil) history for free.

You also need to make sure that you have a reliable marijuana payment processor, as well. This can be hard to find, since the state-legal industry is still federally illegal. There are few that exist that focus solely on the legalized marijuana – medical and retail – market, and you need to be sure that whomever you choose is right for your business. Be sure to do your research, as a marijuana payment processor is one of the most important investments you will make.

For Oregon Marijuana Merchant Processing contact us today!

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Sacramento Marijuana Bill makes it to the Senate

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SacramentoAs marijuana becomes decriminalized at a much faster rate, more laws are being instated. With 25 American states already legalizing marijuana, it’s important for regulations and growing restrictions to be placed. The Sacramento bill AB-243 has recently passed and is on its way to senate. This bill essentially aims to regulate the growing procedures of medical marijuana so it remains legal and remains under control at all times.

The new bill is going to regulate the amount of plants each growing operation can have, the amount of water it can use on a daily basis, where to discharge the water and much more. Chemicals will also be required in order to avoid discharging intoxicated water. As medical marijuana continues growing, it’s important for these regulations to be instated in order to keep an eye on all activities. It’s more of a matter of control just like with any other industry.

Medical marijuana is still illegal on a federal level, making it difficult for businesses in the marijuana industry to grow in the first place. They often have to result to getting a special marijuana payment processing account simply to accept credit card payments. Along with these new regulations, growers could be facing numerous complications. With a maximum amount of plants per growing op, it will definitely limit the amount of profits that each grower will be able to achieve.

Although the bill has not yet passed senate, it’s on its way and is the first marijuana related bill to make it to senate this year. Things are looking good for this bill, especially since it aims to add more control over the newly developed industry.

Northern California is home of numerous growing operations and keeping order and control is of utmost importance. Instance of entire towns drying out due to overuse of water for medical marijuana growing operations have occurred. This bill aims to avoid such instances from ever reoccurring again. We will have to wait and see whether or not senate will pass the bill.

Contact us for Marijuana Payment Processing Solutions today!

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Legal or Not, Big Banks Say No to Big Cash From Marijuana

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A lot of one hundred dollar bills in a bag isolated on whiteAfter a long time of legal battles to have medical marijuana legalized in the US, the nation has finally given a green light to have this business recognized. This means heavy cash in the hands of the people. When you have such volumes of cash, what do you do with it? Take to the banks. Interestingly the America’s big banks don’t want this cash.

Merchants of both medical marijuana and the recreational cannabis have been contending with a serious predicament. They have had to conduct their businesses almost entirely in cash. The reason for this being the fact that it is exceedingly hard for them to open and operate bank accounts. They can thus not accept and deal in credit cards.

The US Treasury Department through its financial-crimes arm is trying to make it easier for marijuana merchants to deposit this young industry’s growing revenue. The latest count approximated this revenue at around 3 billion dollars every year. All of it is almost entirely in cash. As a way to effectively tap taxes out of this revenue base, the government intends to use the country’s major financial organizations. This way it could keep the cash out of the way of organized crime.

There is a problem with the targeted banks though. Even though the government feels that their strong compliance departments are strategic and could help track this money, most federal bank regulators have so far remained silent on the subject.

This has created uncertainties regarding what is likely to happen to banks should they accept this cannabis cash.  The banking industry is therefore confused about what to do. On one hand there is quite a lot of prospect given the 23 free marijuana states together with the District of Columbia are flooded with hard cash awaiting banking services. On the other hand it is unclear what the regulators are holding up their sleeves.

Crucial decisions need to be made fast. Otherwise the marijuana merchants may have to consider only the alternative marijuana payment processing bodies to help them out with safeguarding the cash. In that case the government problem regarding taxation and how best to tap revenues from this industry remains unsolved.

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House Votes to Protect Marijuana Merchants

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Medical marijuana in large jarThe federal government and marijuana merchants are usually on opposite sides of the aisle when it comes to agreeing with, well, almost anything. Luckily, for the second year in a row, the Republican-held House of Representatives voted to protect legalized marijuana merchants from federal interference in states where the drug is still illegal. This “legalized” marijuana only concerns medical marijuana, which could leave a few states in a jam.

While this resolution blocks the Justice Department – including the DEA (Drug Enforcement Administration) – from using federal money to undermine legalized medical marijuana merchants, legalized recreational merchants are in limbo. While certain states (Alaska, Colorado, & Washington State) have legalized recreational marijuana, the possession, growing, packaging, and selling of any type of marijuana is still a federal crime. So, even though the state may not pursue charges, the federal government can if they see fit. According to the United States Supreme Court, federal laws typically trump state laws when they are in conflict.

If you are an existing, or soon-to-be, medical or recreational marijuana merchant, you need to make sure that your marijuana payment processing account is secure. “Secure” not only from hacking’s, but from improper searches. While marijuana payment processing is hard to find, not all that advertise their services are up to par with the changes that are constantly taking place in the industry. This is a tough and tricky industry, and it takes a smart and dedicated processor to help you find success. Some are “fly by night” processors, who hop into the field due to its lucrative nature, but quickly flee when things get tough. You need to make sure that your processor is experienced and knowledgeable, such as “Marijuana Merchant Account”. Processors like MMA have years of experience, knowledge, and the reputation to get you where you need to go in the legalized marijuana industry.

There is a difference in the workings of medical and legalized marijuana merchants, and few processors know this. Experienced processors know that while the industry have its ups and downs, it is a worthy cause for all involved.

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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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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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Colorado Bans EBT Card Withdrawals at Pot Shops

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??????????????????????????????????????????????????????????????????????????????????Pot shop customers (and merchants), pay attention: Colorado has now banned EBT withdrawals from ATM machines in pot shops. While the state previously banned its withdrawals in casinos, liquor stores, and gun shops, this newest ban may leave some shaking their heads. Because pot shops are located in many communities, customers and non-customers alike use their ATM machines as a convenience for EBT cash withdrawal. While this is a setback and inconvenience for many, it should not deter you from operating your shop as you normally would. In fact, it may actually encourage you to look for other payment options beside the popular “cash only” method.

Many Colorado pot shops are “cash only” for many reasons, however it is dangerous. Many establishments have been victimized because of this, and once the cash is gone, your business is out of luck. The revenue is lost, never to return. You need to look for a marijuana payment processing company. You may think this is impossible, because of the stigma on the newly legalized market. True, many processors turn their noses up at the idea of providing a payment processing account to a marijuana merchant, but there are some who do not. One of the best in the business is MMA, or Marijuana Merchant Account.

MMA is different from traditional payment processors for many reasons. For starters, MMA is one of the foremost knowledgeable processors in the legalized marijuana industry. What tends to happen when a new product becomes legalized is that a few payment processors will hop aboard, only to charge huge processing fees. This is not the case with MMA. MMA has been helping legalized recreational and legalized medical marijuana merchants for over 10 years safely accept plastic payment cards with a low processing fee. This low fee does not mean that service is shabby; in fact, it means that MMA wants your business to succeed.

One of the biggest issues with marijuana payment processing accounts is the sub-par security and terminals that are offered up to marijuana merchants. This is not the case with MMA, as top of the line security, software, and terminals are offered. Regardless of how you operate your pot shop, MMA has the tools that you need to succeed.

For Marijuana payment processing and other forms of accepting payment at your dispensary contact us today!

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Understanding How to Operate Under the CA Marijuana Law

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Marijuana Business FundingAre you one of the many individuals in the state of California in need of marijuana for medical use? If you are, there are key aspects of California law that you should know. While the medical use of marijuana is legal, the recreational use, possession, and cultivation of marijuana is very much illegal. You must not only understand California law, but also federal law and your rights.

The fact that marijuana is still illegal on the federal level continues to be the biggest obstacle for those who need to use marijuana for medical purposes. The Drug Enforcement Administration (DEA), lists marijuana as a Schedule I drug along with other drugs, substances and chemicals that are considered the most dangerous along with having no currently accepted medical use. This means that even though medical marijuana cultivation was legalized in 1996, it is still technically illegal on the federal level.

According to California law, the possession of one ounce of marijuana or less is an infraction with the possibility of a $100 fine. Larger amounts can mean fines of up to $500 and six months in jail. If you are found to be in possession with the intent to sell and/or cultivate, it can lead to a possible state prison sentence since both are considered to be felonies.

The best thing you can do for yourself is to educate yourself on your rights. For example, if authorities find that you have baggies and scales then there is evidence of intent to distribute. Instead of looking at a simple possession misdemeanor, you might now face prison time. In addition, if you are located close to a school or near children, your punishment will be much worse.

When growing for medical use, you will have an easier time proving that it is for medical use if you grow a number consistent with your needs. If you are caught with 300 plus plants, for example, this will immediately appear excessive for one individual’s medical use; thus, you may be charged with a felony. However, if you have a large group of people and you can show that it is a more reasonable count of ten plants per person, your grow may be declared legal under California law.

While the medical marijuana industry continues to grow at a rapid pace, there are still many obstacles for those who have startups in the industry; the conflict between state and federal law being a major one. The following tips should help you to be prepared for worst case scenarios while also providing safe solutions to your business needs. Keep all of your “I”’s dotted and your “T”’s crossed.

First, be sure to secure the services of a lawyer who knows cannabis and medical marijuana laws. They can provide answer to any questions you might have as well as assist you in operating your business in compliance with state law.

Second, consider securing marijuana payment processing. This option will provide you with safe and hassle-free payment processing solutions when traditional lending sources shy away from you due to the “high risk” nature of the medical marijuana industry.

For Marijuana Payment Processing contact us today!

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