High Risk Guys
facebook twitter
  • Home
  • About Us
  • Solutions
  • Blog
  • Contact Us

Tag Archives: Marijuana Payment Services

Pharmacies Await Legalization while Pot Firms Gain

Posted on May 20, 2014 by admin

medical-marijuana-symbol

Any ideas or dreams of profit and competition for CVS Caremark Corp., Walgreen Co., and Rite Aid Corp. will not be coming true anytime soon. Even though 21 states have legalized pot for medical use, the drug is still currently illegal under federal law. Because of this, banks are hesitant to accept any money from the sale of marijuana; thus, leaving the market to local entrepreneurs.

As long as marijuana is classified as a Schedule 1 drug, pharmacies will not be able to sell medical marijuana legally. According to an article by Bloomberg’s Shannon Pettypiece and Sonali Basak, “The drug is classified as a Schedule I controlled substance, defined as having a high potential for abuse with no accepted medical use.” The article goes on to say that “Schedule 1 drugs, which includes heroin, can’t by law be prescribed or dispensed.”

In order for pharmacies to be able to dispense controlled substances, it must be registered with the U.S. Drug Enforcement Agency. All three major pharmacies, Walgreen, CVS, and Rite Aid have announced separately that they have no intentions of selling medical marijuana, which would jeopardize their company’s registration with the DEA.

According to Bloomberg Industries analyst Brad Barker, “That may change if the U.S. Congress sees taxes on the drug as a way to raise money.” If more products were made that were approved by federal regulators, more pharmacies might be able to sell medical marijuana. For example, Marinol is an approved prescription pill made with synthetic cannabinoid for the purpose of treating nausea caused by chemotherapy.

As far as investing, three states do allow medical marijuana companies to make a profit from the sale of pot. Shareholders have already begun investing in publically traded marijuana companies. Others, such as large industries and the larger pharmaceutical companies are looking into it in order to be prepared for when legalization occurs.

According to Bloomberg, “Until legalization or more products are marketed by pharmaceutical companies, it will be an industry dominated by small dispensaries set up to serve about 1.4 million medical marijuana cardholders using the drug to treat their symptoms.”

For now, traditional pharmacies are forced to watch from the sidelines while entrepreneurs make considerable gains. Entrepreneur Khalatbari, in an interview with Bloomberg, says that “We’re making money, we’re employing people, we’re being a beacon of light for this industry and showing it can be done professionally. That to me is a success.” Khalatbari expects to make $2 million in sales this year.

Merchant Account Sign Up

Posted in Marijuana Merchant Account | Tagged marijuana merchant account, marijuana payment processing, Marijuana Payment Services, Marijuana Pharmacy, Medicinal Marijuana Merchant Account, Pharmacies Await Pot Legalization

The Cannabis Industry’s Struggle to Acquire Payment Services Continues

Posted on May 20, 2014 by admin

marijuana dispensary merchant accounts

Things are still at a very difficult point for the marijuana industry due to conflict between state and federal laws. The state of Colorado was the first state to legalize (in 2012) the sale and use of small amounts of marijuana for recreational purposes. However, the battle with the payment industry and banks still continues. The fact still remains that marijuana is illegal under federal law.

According to Jim Daly’s article for Digital Transactions, “the federal Drug Enforcement Administration considers marijuana a so-called Schedule 1 drug, right up there with heroin, LSD, Ecstasy, and other hard drugs ‘with no currently accepted medical use and a high potential for abuse,’ according to the DEA Web site.”

The industry is now fighting to be able to obtain payment card merchant accounts for its businesses. The present cash-only nature of the industry not only makes it at risk to crime, but it is also very impractical and difficult for the business owners to deal with. Banks refuse to do work with business owners if they inform them upfront of the nature of their business. In addition, when a personal credit card was the only option, it has been known for banks to cancel the card after becoming suspicious about the owner’s transactions. With banks refusing to provide payment card merchant accounts and keeping a strict eye on the transactions of business owners in the industry, operating in cash is still the only option.

To put it in the words of Daly’s interviewee, Rod Hurlbut, “’It’s a nightmare,’ says the 58-year-old former accountant and real-estate developer. ‘It’s not a good thing. It’s absolutely a nightmare.’”

In an effort to try to compromise, Deputy Attorney General James M. Cole issued a memo on August 29th to federal prosecutors. This memo directs the prosecutors to refrain from enforcing the marijuana provisions of the CSA in the states where cannabis is legal. This refrainment will stand as long as the states conform to eight priorities which he then outlined.

According to Digital Transaction’s article, “They included preventing the distribution of pot to minors, preventing marijuana revenues from going to gangs and cartels, preventing the diversion of marijuana from states where it is legal to those where it is still banned, and other provisions.”

So far, there really have not been many changes for the cannabis industry. The early months of 2014 saw the ban by payment card networks in signing illegal merchants as card acceptors. Visa Inc., however, did issue a statement leaving the signing of new pot shops up to the discretion of its acquirers.

According to Digital Transactions, Visa Inc. made this statement in regards to its decision,  “In this instance, the federal government considers the sale of marijuana illegal, but has announced that it will not challenge state laws that legalize and regulate marijuana sales. Given the federal government’s position and recognizing this is an evolving legal matter with different standards applicable in different states, our local merchant acquirers are best suited to make any determination about potential illegality.”

For now, business owners will have to operate in the awkward position between state and federal law. Until a more practical solution can be found and they are able to obtain payment card processing services, they will have to deal with handling the overwhelming amounts of cash they receive in weekly sales. Regardless of the state laws, the CSA still prohibits banks-and everyone else-from dealing with controlled substances or any proceeds that come from them.

According to a statement made by the association’s president and chief executive, Don A. Childears, “I believe there is nothing the executive branch can do to change this. The resolution of this requires, literally, an act of Congress, which isn’t likely in the near future.”

Merchant Account Sign Up

Posted in Marijuana Merchant Account | Tagged Cannabis Payment Services, Colorado Marijuana Industry, marijuana merchant account, Marijuana Payment Services

Get Approved Fast

Call 1-800-466-1809 now to get your medicinal marijuana dispensary merchant account today!

Recent Posts

  • U.S. Territory Could Make History in Legal Marijuana Industry
  • Banking Woes Continue To Plague Legal Pot Industry
  • Unforgiving Federal Banking Laws Threaten To Render Marijuana A Cash-Only Industry
  • California’s Hopes for Legal Marijuana Industry are Disappointed
  • Why Banks Won’t Touch Legal Marijuana and the Risk it Creates

Tags

California Marijuana California Recreational Marijuana Colorado Dispensaries Colorado Marijuana Colorado Marijuana Industry Colorado’s recreational marijuana market dispensary merchant account Florida Marijuana high risk credit card processing High Risk Merchant Account is medical marijuana legal in ohio Legalized Marijuana Legalize Marijuana Legal Marijuana Legal Marijuana Industry Legal Marijuana States Marijuana Banking Marijuana Business Marijuana Business Funding Marijuana credit card processing marijuana credit card terminal Marijuana Dispensary Marijuana Dispensary Merchant Account Marijuana Industry Marijuana Legalization marijuana merchant account marijuana merchant accounts Marijuana Merchant Processing Marijuana Merchants marijuana payment processing Marijuana Payment Solutions Marijuana POB Medical Marijuana Medical Marijuana Merchant Account medical marijuana payment processing medical marijuana payment processing account Medicinal Marijuana Merchant Account Medicinal Marijuana Merchant Services merchant account to sell marijuana merchant services MMJ merchant account New York Marijuana Payment Processing for Marijuana Merchants Processing Marijuana Sales Recreational Marijuana

Home | About Us | Solutions | Blog | Contact Us

Copyright© 2014 marijuana-merchant-account.com

Get Approved!

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