Securing Payment Processing Solutions for Marijuana Dispensaries

Posted on September 25, 2015 by admin

One of the biggest hurtles for the marijuana industry is payment processing. Until marijuana is no longer classified as an illegal Schedule I drug, financial institutions will continue to be faced with regulatory issues when it comes to approving a cannabis account. However, there are some tips that might help you in establishing a positive relationship with a financial institution – they may even allow you to obtain an account.

Comply with your state’s regulations. One of the best steps you can take to demonstrate your compliance with the state’s regulations is to have copies of successful state regulatory agency inspections; this includes any third-party compliance assessment reports. Another step in the right direction would be to include having a designated compliance officer or company actively monitor operations. Be sure to also train staff in all compliance issues. Any compliance training should also be documented.

Before you go, be prepared. Before you leave for the bank, slip the following documents into your briefcase to take with you:

Federal & state tax returns – presenting tax returns shows the institution that you are properly reporting your income from operations.

State & local licenses – these documents will prove that operating legally within your state and local governments is important to you.

Business financial records – include annual summaries of profit and loss statements and balance sheets. Supplying such information will reassure the institution of your willingness for transparency.

Personal financial records – include personal financial statements and tax returns. Again, doing so will show the bank your transparency, and that they do not have to worry about money laundering or other criminal activity.

Understand that there will be additional fees. Institutions are obligated to cover the cost of regulatory reporting requirements of the Justice, Treasury and other Federal and State departments and agencies. As the institution gains more experience concerning your account – and the industry itself – these costs will likely change.

Be transparent in what you are. Whatever you do, do NOT hide the fact that you are in the cannabis industry from an institution. It is tempting to think about doing so in light of the current climate of the financial industry. In truth, most financial institutions do want your account. They are just unsure of how to tell who is “good” and worth the additional scrutiny they will receive.

Pick the right type of financial institution. Whether you secure marijuana payment processing through a smaller community institution, a larger regional or national institution or through an online high risk provider, be sure you find the solution that best fits your needs. Many times, even after dotting ever “I” and crossing every “T”, traditional institutions will still turn you away. In this case, many have turned to the alternative high risk payment processor for their marijuana payment processing needs – taking advantage of their specialized services.

Keep in mind that, even if cannabis is removed from Schedule I under the Controlled Substance Act, banks won’t automatically open their vaults for your deposits. The concerns about Suspicious Activities Reports and Anti Money Laundering Regulations will remain. The best thing you can do is to be thorough and transparent. Don’t be afraid to explore all of your marijuana payment processing options.

Contact MMA for all your Marijuana Payment Processing needs.

MMJ Businesses Seek Payment Solutions Elsewhere after KC Fed’s Denial

Posted on September 24, 2015 by admin

The marijuana industry continues to experience one setback after another. This summer has been no exception. At the beginning of August, it was reported that the Federal Reserve Bank of Kansas City was caught in the middle of a heated debate concerning the legalization of marijuana. It became a target of a lawsuit filed by a credit union that is seeking to serve the marijuana industry.

The Fourth Corner Credit Union is a state-charted credit union founded in Colorado in 2014. The lawsuit was filed in federal court by the credit union after the Kansas City Fed denied the credit union a nine-digit routing transit number that would allow it to create its master account. The Federal Reserve’s argument is that, in denying the credit union’s application, there is no way to properly identify the risk posed by the financial institution or how to manage that risk.

The CEO of Fourth Corner, Diedra O’Gorman, expressed that the Kansas City Fed is unreasonably restraining trade and commerce. Her argument is that, since the credit union received a state charter, federal law requires that access to Federal Reserve payment systems must be granted.

In addition to the initial lawsuit, the credit union also filed a separate suit against the National Credit Union Administration’s Office of Consumer Protection. Ultimately, the office denied the credit union access to the federal insurance program that protects depositors. Another road block, the credit union’s charter was approved on the condition that it gets federal insurance.

Federal banking regulators have taken a hard-line stance against providing banking to the marijuana industry due to the federal prohibition of the drug. As far as federal law goes, marijuana is still classified as a Schedule I substance along with heroin, LSD and peyote.

As a result, state-licensed marijuana businesses are forced to operate in a cash-only manner. This makes tax collection in states where marijuana is legal difficult, and obviously creates serious security problems for the businesses themselves. With little to no help from traditional financial sources, marijuana businesses are turning to the marijuana payment solutions many high risk providers offer.

With little to no change on the horizon at the federal level and debates raging at the state level, marijuana payment solutions of this sort seem to be the best and safest option. Businesses are able to secure their payment processing needs while steering clear of cash only operations. In the meantime, many are waiting to see the outcome of the Kansas City Fed lawsuit and its impact on the marijuana industry’s future.

For Marijuana 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.

Legalization of Oregon Recreational Marijuana Could Mean Big Bucks for Dispensaries

Posted on July 24, 2015 by admin

The medical marijuana industry is waiting for Gov. Kate Brown to sign a bill into law that would allow the state’s 310 dispensaries to sell recreational marijuana. Medical marijuana dispensary owners are hoping the bill goes into effect as many are struggling to keep their doors open. The problem is that the Oregon market is extremely saturated with producers of medical cannabis who are fighting over a limited supply of medical cannabis patients.

The bill would allow existing dispensaries to decide between being medical marijuana distributors or recreational distributors. Recreational dispensaries would be allowed to sell up to a quarter-ounce of flower to customers or four non-flowering plants at once. The ability to sell recreational marijuana would keep many dispensaries afloat, and even expand the industry in Oregon. Both in-state and visitor demand could lead to sales that could be tripled or quadrupled if the bill passes. There is an estimated 1 million recreational consumers in Oregon. Plus dispensary owners think that recreational use would increase tourism, especially from Washington State, which could bring in millions of dollars.

Currently, the average gram in Washington costs between $25 and $30, while in Oregon MMJ prices stand at $8-$10. These lower prices could be enough to attract substantial tourism from the neighboring states. Still recreational facilities may not get rich quick. Under the bill, the state could impose a 25% sales tax on recreational marijuana. There may also be government fees for dispensaries, plus Oregon’s health agency could also introduce more fees and rules. Also rec stores will almost certainly be taxed at a higher rate than medical marijuana dispensaries. Whether or not marijuana distributors will see profits from recreational marijuana is yet to be seen until the bill is signed by the Governor.

If recreational marijuana is allowed in Oregon, dispensaries will need competent medical marijuana payment processing. The marijuana payment solutions provided by MMA will help grow your company’s business by giving your customers more ways to pay for your products. Learn more about expanding your customer’s payment options beyond cash.

For Marijuana payment Solutions contact us today!

Banks Get Conflicting Message on Pot Funds

Posted on June 16, 2015 by admin

Everyone knows that the legalized marijuana business is a moneymaker. However, marijuana is still illegal in the federal government’s eyes, and they can make the moneymaking ability difficult. Even though three states have legalized recreational marijuana, and others have legalized medical marijuana, state law is often trumped by federal law. While the House of Representatives recently renewed a law that protect legalized medical marijuana merchants from searches, seizures, and overall harassment from the feds (and DEA), but this leaves out one important issue: the banking issue.

The federal government regulates the banks, which may lead merchants to believe that banks should not be allowed to accept funds from legalized marijuana merchants. However, the feds and banks are sending mixed signals. The biggest new line of business for America’s biggest banks is, in fact, the legalized marijuana industry. While many believe the industry to be cash-based, and in certain aspects, it is, many choose to find marijuana payment solutions, such as the options offered by MMA. This helps keep your accounts safe from fraud. For instance, if a fraudulent charge hits, your processor and bank can help figure it out. If you are a “cash only” business and are dealt fraudulent bills, there is nothing you can do about it. “Cash only” businesses are also risky, as they are often targets of robbery.

Banks are now required by the feds to file “suspicious activity reports” on each customer. While intrusive, this can help keep businesses safe, and categorized better. Typically, marijuana payment solutions and their clients are considered “high risk” to the banking industry. This new system can help keep customers, merchants, and the entire industry safe and in check. However, while this idea is floating around, many big banks are not biting yet. They find that the risk is too big, especially due to the fed’s ability to override any state laws regarding the legalization of marijuana in any form. The best thing for all legalized marijuana merchants is to make sure that their marijuana processing solution is educated and up-to-date with all information and changes regarding the industry.

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Medical Cannabis Businesses Who Find it Hard to Open Accounts – The Search Ends Here

Posted on June 16, 2015 by admin

Medical marijuana is finally becoming legal in Minnesota on July 1^st, yet it remains a touchy subject due to federal laws. Banks and financial institutions are weary of working with such businesses out of fear of federal crackdowns.

This summer, Minnesota patients suffering from cancer, AIDS, HIV and several other conditions, will be permitted to consume marijuana on medical terms. The marijuana will be distributed in pill and oil form and will be highly regulated. Grown by physicians, scientists and other professionals, everything is highly controlled. Nonetheless, banks are still extremely cautious about working with marijuana businesses.

Getting approved for a marijuana merchant account and even getting a line of credit is becoming a task all on its own for these businesses. Now that the legal issues are out of the way, medical marijuana growers now have to focus on the financial aspect. Getting approved for high-risk accounts is nearly impossible with most banks refusing every single application.

The issue is that most banks consider the fact that medical marijuana is still considered illegal on a federal level. The DEA still places marijuana on the same level as LSD and heroin. However, the federal government has announced that shutting down state medical marijuana growers would not be a priority. This allows some banks to consider accepting professional-quality growing-ops.

Nonetheless, most medical cannabis growers are turning towards companies such as MMA to get approved for marijuana merchant accounts. This allows them to accept credit cards without having to pass through local banks.

The federal government has also provided banks with several documents, outlining how to deal with medical marijuana growers without being held responsible. For instance, filing a Suspicious Activity Report for every deposit will help banks approved marijuana growers without being held responsible. Although it seems like a ton of paperwork considering the massive amount of deposits being made, it’s a solution nonetheless.

The best solution thus far is working with high-risk merchant processors such as MMA, which is far better than dealing with cash transactions only.

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

Majority of Voters in Swing States Are in Favor of Legalization

Posted on April 28, 2015 by admin

Recently, attention has been on the swing states, Florida, Ohio and Pennsylvania. It was not anticipated that these states would be the next to campaign for the legalization of marijuana, but voters have revealed in a recent poll that they do indeed support it. In fact, the majority of voters in these three states support permitting adults to possess marijuana legally.

According to survey data published by Quinnipiac University on April 6, 2015, 55% to 42% of Florida voters support allowing adults to possess marijuana in small quantities for the purpose of personal use. In addition, 52% to 44% supported this legalization in Ohio. In Pennsylvania, 51% of voters revealed that they supported this legalization while 45% oppose it.

Voters in the swing states did not just reveal their sentiment in favor of legalizing the recreational use of marijuana. Voters also seem to favor making marijuana available for therapeutic purposes, allowing doctors the ability to recommend cannabis therapy.

According to the poll, 84% to 14% of voters in Florida are in favor of making the plant’s availability for therapeutic purpose legal. In addition, the vote in favor was 84% to 15% in Ohio and 88% to 10% in Pennsylvania.

Despite these votes in favor of both the legalization of medical and recreational marijuana, lawmakers have yet to hold any hearings on either the legislation seeking to regulate marijuana use and retail sale or the legislation to permit regulatory access to medical cannabis. Both pieces of legislation are pending in Florida and Pennsylvania.

For businesses in this industry, the legalization of marijuana couldn’t come fast enough. Those in the industry operating in states where it has been legalized are still encountering issues with securing funding. Why? Regardless of the legalization in some states, marijuana is still illegal at the federal level.

Because of this, traditional lending sources are reluctant to provide their services. This hole has been filled thanks to alternative funding options. Marijuana payment solutions has become the option of choice for many marijuana business owners. Marijuana-merchant-account.com, for example, has been helping medical marijuana dispensaries with payment processing for almost ten years.

If this has been a problem for your business or you are considering starting a business, take time to consider what marijuana payment solutions could offer your business or startup. The application process is simple, fast and hassle-free. And unlike traditional lending sources, you will not experience a pile of endless paperwork and a long wait period to receive your funds.

Need Marijuana Payment Solutions, contact us today!

No Plastic for Weed? Why Most Dispensaries do not Accept Credit Cards

Posted on April 9, 2015 by admin

Everywhere accepts credit and debit cards, right? Wrong. Many, in fact most, marijuana dispensaries do not accept debit or credit cards for payment. There are many reasons as to why, but the most common is that it is hard to find a marijuana merchant processing company. The legalized industry is new, and the vast majority of merchant processing companies will not deal with these accounts. This seems like something that can doom a business, but luckily, there is one solution for obtaining a marijuana merchant processing account.

With MMA marijuana merchant processing abilities, you cannot only process marijuana dispensary payments, but also process them at a rate that is much lower than a traditional processor would charge. The industry is considered to be “high risk”, meaning that it has a higher risk of incurring fraudulent activity. While true, it does not mean that a company should be forbidden from processing debit and credit card payments.

We at MMA also believe that everyone deserves a fair shot at having a successful business. You can become approved for an account, regardless of your credit report! This is a rarity, even in the non-high-risk business world. The best thing you can do as a marijuana dispensary merchant is to contact MMA today.

Now, you also need to know that we provide wireless terminals, which allow you to travel around your shop with the terminal. You can travel to a customer, instead of having a bulky set-up in one place in your shop. This can be a problem if your shop is small, or if there is inadequate electrical outlets. Wireless terminals also come with up to date security, software, and MMA’s ability to catch a fraudulent charge before it destroys you and your customer.

Another issue that can affect a company are chargebacks. Chargebacks are the outrageous fees that come because of a fraudulent charge. While there is no way to get rid of a chargeback completely, we at MMA can inform you of services that can help lessen chargeback fees. This is beneficial to any business, but especially a high-risk business.

Marijuana dispensaries should be able to accept credit and debit card payments. The sad reality is that few do, and many do not know where to look to find a marijuana merchant processing account.

You only need to look to one place, and that place is MMA. Contact us today!

Marijuana Industry Banking focus for Colorado Governor

Posted on February 28, 2015 by admin

The traditional banking industry has disassociated from the marijuana industry for a long time. All that is about to change in the state of Colorado with the Governor focusing on putting the marijuana industry banking a top priority for the growing sector in their state. The once unregulated and unstructured marijuana industry lead banks fearful of crackdowns by the federal government, but with new laws allowing the selling of medical marijuana according to state laws, Colorado has seen an explosion of revenue coming from the marijuana industry.

With the beneficial increase in state revenue from the marijuana industry taxes, Colorado Governor, John Hickenlooper, is aiming to make the marijuana industry free of corruption by focusing on banks to start working with the marijuana merchants. It’s clear that the marijuana industry is risky in business terms, but with legalization of medical marijuana in the state, the all-cash industry, can face many problems without a proper partnership with the banks.

Banking has been a major issue for the industry, but in Colorado, the marijuana industry is thriving and a well functioning banking partnership must be had to reduce crime and corruption. With the continuing battle with public health and public safety concerns, the marijuana industry has shown that the legalization laws are working. Taking into consideration from health officials, industry, law enforcement, and community members, the marijuana industry has surpassed all doubts and has shown beneficial economic growth for the state of Colorado.

No matter how banks see it, the marijuana industry has shown positive light to the right people. Marijuana merchants can know that they are safe as long as they abide by state laws. For marijuana merchants, it’s a good time to expand cash-only payments and allow processing credit and debit card purchases. Marijuana-merchant-account.com can help you set up a marijuana merchant processing account. They have industry knowledge and cater to all the necessary needs of the marijuana merchant.

The all-cash industry is restrictive and is slowing down the potential of larger sales. Accepting debit and credit cards will reduce robberies. As medical marijuana sales continue to show positive growth, a comprehensive banking reform should be made for the necessary marijuana industry.

For Marijuana Payment Solutions contact us today!

Get High on Profits with MMA Payment Processing

Posted on February 24, 2015 by admin

Last August, Deputy Attorney General James Cole issued a memo that outlined a new Department of Justice policy that declined the enforcement of the Controlled Substances Act if that specific state legalized marijuana. As a result, the Obama Administration released new FinCEN guidelines that allow banks to legally work with legal marijuana merchants, but bank officials still believe that the guidelines don’t go far enough to protect the banks and refuse to open legal marijuana merchant accounts, leaving most marijuana merchants out in the cold.

The problem lies with the fact that marijuana is still illegal under the Controlled Substances Act. Despite its legalization and decriminalization in over 20 states, the new guidelines still place a large amount of culpability on banks if the marijuana merchants they support engage in illegal operations; resulting in stiff penalties or possible legal consequences. Therefore, most bank officials have decided to steer clear of marijuana merchants for now.

This unofficial policy by American banks has left legal marijuana businesses in the lurch. Without access to a credible payment processor, merchants cannot process checks or credit cards. This means that products can only be purchased with cash, eliminating the ability of merchants to operate online, severely limiting their profits, and placing merchants and their employees at risk. The potential for robbery is a real concern for many marijuana merchants, particularly medical marijuana facilities that store and process a large volume of marijuana.

But all is not lost for legal marijuana merchants. Smaller, independent banks are realizing that the risk may be worth the reward when choosing to process marijuana payments. Many are starting to form relationships with merchants, but are still taking precautions like placing a limit on to how much volume they are willing to process. But marijuana merchants are willing to take even a little help if it means a boost in profits.

It is only a matter of time before marijuana is decriminalized in the United States. Meanwhile, cities and states across America are still legalizing marijuana making now the perfect time to invest in this growing enterprise. But merchants still need competent medical marijuana payment processing. Expand your customer’s payment options with MMA.

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