Open for Business: Medical Marijuana Now on Sale in Pennsylvania

Posted on February 27, 2018 by admin

Marijuana Business A big, long-awaited moment for the state of Pennsylvania, dispensaries made their first legal medical marijuana sales in the beginning weeks of February. The first dispensary to open was in Butler on Feb. 15th. Although medical marijuana was legalized in Pennsylvania two years ago, Pennsylvanians are just now able to walk into a dispensary and make a purchase.

On Feb. 13th, Gov. Tom Wolf issued a statement saying, “Pennsylvanians have been waiting years for this moment.”

He went on to share that “In less than two years, we have developed a regulatory infrastructure, approved physicians as practitioners, certified patients to participate and launched a new industry to help thousands find relief from their debilitating symptoms.”

Individuals suffering from one of the 17 serious medical conditions doctors prescribe medical marijuana for are breathing a sigh of relief. According to the state Department of Health, some of the qualifying serious medical conditions for a patient in Pennsylvania to be eligible to apply for a medical marijuana card, include: autism, cancer, Crohn’s disease, epilepsy, inflammatory bowel disease, Parkinson’s disease, neuropathies and post-traumatic stress disorder, among others. Some patients and their families have described it as “a dream come true”.

The process involves the patient submitting their information and the physician certification to the state. The automated system then processes the information, and a registration card is sent out to the patient. The patient can then take their registration card and quickly obtain the medical marijuana they need. For the past two years, patients might have a certification, but no easy way to secure the medical marijuana.

Steve Schain, a senior attorney in Philadelphia with the Hoban Law Group, praised the state’s efforts. “Pennsylvania is doing an amazing job. It has hit every deadline and moved much faster than I thought it would,” he added. “Is it perfect? No. Is anything perfect? No. But in the world of legalized marijuana, they’ve done amazing job — and I’m cynical.”

However, there are still many obstacles ahead for the dispensaries themselves. While the state has approved medical marijuana, cannabis is still classified as a Schedule 1 substance at the federal level. This made it very difficult – if not impossible – to secure payment processing solutions and marijuana funding. As a result, more and more merchants are turning to providers like Marijuana Merchant Account for a marijuana merchant account.

Although there are still many obstacles like this to overcome, advocates remain hopeful following Pennsylvania’s legalization of medical marijuana in 2016, and the recent greenlight for medical marijuana sales this year.

To set up your Marijuana Merchant Account contact us today!

America’s Youth are Safe, Marijuana Legalization has not Led to Substance Abuse

Posted on September 29, 2017 by admin

Youth With each state that legalizes marijuana use, opponents express their concern that it will lead to a spike in drug abuse and crime. Cannabis activists, on the other hand, continue to proclaim the benefits of legalizing marijuana. So, who is right? Or do both sides have a valid point? Will legalization hurt America’s youth by increasing drug and alcohol abuse in young people?

A new working paper by researchers from the Consumer Financial Protection Bureau, Harvard University and Western California University shed some light on this issue. According to this study, liberalized marijuana laws have little positive or negative impact. The findings of this paper – distributed by the National Bureau of Economic Research – are based on annual surveys of high-school seniors. This ongoing study of American youth began in 1975.

However, other researchers have identified certain facts and statistics that involve both positive and negative effects. Some of the positive effects of more liberal marijuana laws include:

They appear to have reduced the use of cocaine and heroin among teens.
Regulation of marijuana has made drugs (e.g. salvia) and other narcotics appear riskier.
Where marijuana laws were liberalized, teens reported fewer days of illness and less fighting.
Studies have revealed that marijuana and its derivatives (such as the compound cannabidiol) are effective in treating epilepsy, chronic pain and nausea associated with chemotherapy, among other conditions.

Some of the less positive results include:

Marijuana liberalization was correlated with an increase in the ease of procuring psychedelic drugs, and barbiturates.
Looser cannabis laws have been associated with an increase in petty crimes like shoplifting.
Other statistics have shown that marijuana legalization has led to a higher number of traffic fatalities and hospitalizations.

At present, the marijuana industry is stuck in a tug of war. The beginning of September, the U.S. house rules committee blocked an amendment that would protect medical marijuana patients. To complicate matters further for the industry, Attorney General Jeff Sessions has indicated a willingness to go after businesses and individuals involved in the industry – in states where cannabis is legal for medical and/or recreational use.

This month, Sen. Orrin Hatch, R-Utah announced his plans to introduce a bill that would remove barriers that are currently preventing further research on medical marijuana. In addition, a group of senators introduced another bill that would end federal prohibition of medical marijuana.

Amidst this struggle, marijuana merchants are dealing with their own set of obstacles. Under strict federal regulations, merchants are unable to secure processing and funding from banks and other traditional financial institutions. Trying to avoid the danger of operating in cash only, many merchants turn to an alternative provider like Marijuana Merchant Account (MMA). In as little as 24 hours, these business owners can secure the medical marijuana merchant account they need to process debit and credit card transactions, accept e-checks (online and by phone) and obtain business funding.

Lawmakers Continue Push to Expand Maryland Medical Marijuana Industry

Posted on August 28, 2017 by admin

Medical Marijuana Payment Processing In the final days of the Maryland legislative session, top democrats agreed to the expansion of medical marijuana growers in the state. Two top lawmakers in particular, Senate President Thomas V. Mike Miller and House Speaker Michael Busch, showed their support by writing a letter in July requesting passage of “emergency legislation” in the legislation session beginning January.

Even with these steps forward, there are still many issues to discuss. For example, lawmakers are still wrestling over which businesses should be given entry into the lucrative marijuana market. Fifteen companies were preapproved last year by regulators. If they pass all final inspections and background checks, they’ll be cleared to open cultivation sites. And what about marijuana credit card processing? With strict federal regulations, merchants are unable to secure processing and funding from traditional financial institutions. Most turn to an alternative provider like Marijuana Merchant Account (MMA).

There have been other obstacles in the process of approving five additional growing licenses. In the final days of the legislative session, House and Senate negotiators battled over a compromise concerning how many new licenses should be issued, along with whether the number of growers should be reduced if a company fails inspection.

If the new bill was passed, it would also favor minority-owned companies. This addition is lawmakers attempt to address concerns raised when two companies sued the state after their application was rejected in favor of lower-ranked bids. According to The Washington Post, these lower-ranked bids were from “geographic regions of Maryland where no growers had been approved”.

Opposition arose to expand the Maryland marijuana market, surprisingly, from the fifteen businesses that have already been given cultivation licenses. These companies have banded together to oppose expanding the market. According to them, this expansion completely derails their business plans and pitches to investors; their plans were based on the expectation that they would have exclusive foothold of the marijuana industry in Maryland.

“Our members relied on commitments from the state when making their business decisions, and it is reasonable for them to expect that the state would honor those commitments,” says Jake Van Wingerden, President of Cecil County’s SunMed Growers. “Many of our members are just months away from delivering medical cannabis to patients, and we are opposed to any changes that would cause additional delays to this important program.”

Unfortunately, the session came to a close with no resolution. The bill was pushed off until 11:55p.m. – with a midnight deadline – before it came up before the full House. Republican lawmakers then delayed the vote by asking questions until the clock hit midnight. The 90-day session came to a close.

The result: none of the companies that received the green light to start growing Maryland’s first legal marijuana belong to African Americans, and the legal battle with two rejected applicants continues (they planned to drop the lawsuit if the bill was passed). The decision may be delayed, but the push for growth continues.

Florida Bank Risks Scrutiny by Offering Marijuana Merchants Services

Posted on August 25, 2017 by admin

Welcome to Florida with cannabis leaf road sign illustration, with distressed foreboding background

Despite the growth of the medical marijuana industry, cannabis remains an illegal substance on the federal level. As a result, banks refuse to work with these businesses, leaving many marijuana merchants with little to no options. The majority are forced to operate in cash-only and fear being robbed daily.

A new strategy by Orlando-based financial institution First Green Bank has turned a lot of heads. In fact, the institution has been actively seeking Florida’s marijuana businesses. Considering that marijuana is classified as a Schedule 1 substance by the DEA (no currently accepted medical use and a high potential for abuse), how is this possible?

In a recent interview, Ken LaRoe, founder and chairman of First Green Bank, revealed the institution’s straightforward strategy, “We don’t touch the cash”, he said simply.

While First Green Bank does technically handle the cash, it sticks to a strict hands-off approach. With the federal regulations that make the industry cash based, First Green works closely with an armored car company that transports the cash directly from dispensaries to the nearest Federal Reserve location. This institutions willingness to venture into the industry has made it the exception (definitely not the rule).

A widely cited memo from a deputy attorney general in 2014 created a huge obstacle for banks operating in states where cannabis is legalized. According to the memo, if money from organized crime makes it into marijuana business’ bank accounts, the banker(s) could face criminal prosecution. First Green Bank is one of the few bold enough to accept deposits from cannabis merchants.

Thus far, First Green Bank has collected around $30 million in deposits from marijuana business. According to the FDIC, the bank had $485 million in deposits (as of March 31). However, the institution has not moved to extend loans to marijuana businesses. LaRoe explained that offering loans to these companies involves many risks, including: the property is subject to seizure and contracts can be legally unenforceable.

For now, marijuana merchants in need of business funding can find fast cash solutions with alternative lenders like Marijuana Merchant Account (MMA). Specializing in this industry, MMA can provide funds in as little as 24 hours; the “high risk” nature the industry is not a problem. MMA also offers secure and efficient marijuana processing solutions.

What are LaRoe’s thoughts for the future? Although First Green Bank currently has a monopoly on the Florida medical marijuana industry, he is optimistic that other financial institutions will join in. It would also make him feel more comfortable having others at his side supporting the industry.

“I’d like to see other banks getting into it, just because there’s strength in numbers,” he says.

Medical Marijuana Industry Welcomes Season of Growth in New York

Posted on August 24, 2017 by admin

Statue of Liberty marijuana leafs vector

To the delight of the medical marijuana industry, it’s a season of growth. The campaign to create a medical marijuana program in New York was a very long, uphill battle. Even when it was finally passed in 2014, advocates criticized the many restrictions imposed. Known for being again the legalization of marijuana, many were pleasantly surprised and relieved when Gov. Andrew Cuomo agreed to sign legislation granting five licenses to grow marijuana. Although, the number of dispensaries in the state was capped at 20.

Since then, Gov. Cuomo administration has made many changes. Home delivery of the drug has is now permitted. Chronic pain was added to the list of eligible conditions, and nurse practitioners are now allowed to prescribe the drug. More than 20,000 patients and over 1,000 practitioners have been registered.

Although he still openly opposes recreational marijuana, Gov. Cuomo has been become more accepting of medical marijuana. In June, the state Senate voted to add PTSD to the list of illnesses and ailments eligible for the state’s medical-marijuana program; this decision came six weeks after the Assembly’s decision to do the same.

On August 1, the New York State Department of Health announced that it had licensed five new medical marijuana companies. This addition doubled the number of firms growing and selling medical marijuana products under the (strictly) regulated state program. The new businesses joining the industry are New York Canna, Fiorello Pharmaceuticals, Valley Agriceuticals, Citiva Medical and PalliaTech NY.

Despite growth, there are still many obstacles to overcome, and plenty of issues merchants are currently struggling with. For example, on behalf of four of the five original companies, the New York Medical Cannabis Industry Association, sued the state to try to stop the issuance of new licenses. The claim was that this issuance was an overreach of legal authority.

According to Times Union, “The association claimed that not only would DOH be overstepping its legal authority by issuing more than five licenses, it would imperil the nascent industry because demand for medicine does not warrant doubling of the supply market.”

Another large issue merchants and medical marijuana businesses experience is finding payment processing solutions. Although medical marijuana is legal in New York, it is still illegal at the federal level. With strict federal regulations, banks won’t touch cannabis businesses. An increasingly popular solution is a marijuana merchant account from an alternative provider like MMA. These accounts allow these merchants to avoid operating in cash-only by providing the ability to process credit and debits cards and e-checks.

Regardless of those who have tried to stall progress, the New York medical marijuana industry is moving forward. Even with the many obstacles, it continues to grow and merchants are finding the solutions they need to grow a thriving business.

The Nerve-Racking Process of Paying Marijuana Taxes

Posted on August 24, 2017 by admin

The news is full of updates on the state of the marijuana industry. Reports of which states have legalized recreational and medical marijuana, along with the many reasons why cannabis is beneficial. One of the less mentioned topics is the nerve-racking process these marijuana merchants go through to complete otherwise simple, mindless business tasks.

Consider the state of California, for example. On January 1, 2018, recreational marijuana will become legal in California. Coupled with the already legal medical marijuana, this could quickly push California to be the largest legitimate marijuana economy. However, there is one large, crippling aspect to the marijuana industry that makes it difficult – even dangerous – to operate in: most merchants can’t use a bank. An emerging marketplace, with a projected $7 billion value, finds itself operating in cash-only.

How is this possible? Marijuana is classified by the DEA as a Schedule 1 substance (high potential for abuse, with no currently accepted medical use in treatment in the U.S.), alongside heroin. Thus, it remains illegal under federal law. With intense federal regulation, banks do not want to handle the risks involved in working with businesses that offer cannabis product.

Within the next few years, California is expecting to collect $1 billion in new tax revenue from the marijuana industry. L.A. has an estimated 1,000 to 1,700 medical marijuana dispensaries. In 2016, only 200 paid city taxes. Next year alone, the state expects to collect $40 million.

This stunning amount must be processed through a bank, right? Think again. With no bank solution, these merchants must closely manage their cash to ensure they have enough to cover taxes. While other businesses send a check or wire the money via their laptop, marijuana merchants count their (massive) cash on hand, make arrangements to drop off the tax payment –hundreds of thousands of dollars in many cases – and then make a nerve-racking trip to the agency. The biggest fear is being robbed in route.

“When now everyone makes payments through their cellphone, it’s tough to see that I’m left to the archaic version of counting money”, says Jerred Kiloh, owner of the Higher Path medical marijuana dispensary in Los Angeles.

More and more merchants are beginning to discover the advantages of securing a merchant account to sell marijuana through an alternative provider like Marijuana Merchant Account (MMA). Specializing in working with the cannabis industry, these solutions provide safe and efficient payment processing options. No longer restricted to cash only, MMA offers credit and debit card processing and e-check processing. In an industry where merchants, banks and armored truck services fear backlash from the federal government, merchant accounts offer a real, safe solution for marijuana merchants.

Marijuana Industry Continues to Evolve, Capitalists Join Industry

Posted on August 18, 2017 by admin

Indoor Marijuana Grow Room with Plants in Soil Under Lights The marijuana industry is almost unrecognizable when you compare what it is today with what it was a couple of decades ago. Far from the completely black market, the marijuana industry is now valued at $4 billion a year. In addition, things have transitioned from farmers hiding from helicopters to business suits and legal transactions. Before, funding and payment processing were impossible. Now, alternative lenders offer quick, flexible solutions (consider Marijuana Merchant Account). No more hiding in the shadows.

Among the many changes, the marijuana industry has recently begun to attract a growing line of investors. These individuals are more interested in the money than with the product itself. According to Marijuana Business Daily, investors plan on average to invest half a million dollars in the marijuana industry in 2017. Several investors have even shared they are willing to risk more than $25 million. Participating parties include individual investors, private equity and venture capital firms. All are hoping to seize profitable opportunities to monetize marijuana.

In a recent article, Forbes revealed the top five financial leaders in the cannabis industry:

MedMen Capital

Founded in 2010 by cofounder and Chief Executive Officer Adam Bierman and Andrew Modlin, the MedMen Opportunity Fund has invested in seven projects, including: dispensaries spanning from California and New York, and cultivation facilities in California, New York and Nevada. $99.2 million has been raised, including $60 million raised through MedMen Opportunity Fund (which closed in April).

Phyto Partners

Known for its generosity, Phyto Partners drops between $500,000-$750,000 into company investments. Phyto takes particular interest in building relationships with leading companies in the marijuana industry, including: cultivators, dispensaries, device/product manufacturers, researchers and more. According to Managing Director Brett Finkelstein, “Since we have the ability to deploy a larger amount of capital, the fund can get more favorable terms. This usually means better valuations, more equity and more control.”

Casa Verde Capital

Casa Verde differs from the previously listed financial companies in that its investments are smaller, $250,000 to $500,000 per new company. However, the company names are bigger (e.g. Snoop Dogg and Ted Chung). Casa Verde says its focus is currently set on becoming the preeminent venture partners for early stage companies.

Poseidon Asset Management

Founded in 2014, Poseidon Asset Management’s exclusive commitment is to cannabis investing. Recently, the company led a $3.5 million purchase of a winery that intends to switch to cannabis crops. Thus far, the company has raised $25 million and invested in 40 different companies.

Arcview Group

Arcview group was founded by Troy Dayton and longtime activist Steve DeAngelo. Arcview has provided capital for 141 companies – Mass Roots, MJ Freeway, Medicine Man, Eaze, among many others – and has invested $115 million. Their specialty is vetting and presenting companies seeking investment with people who wish to invest.

Legal Marijuana Growing Rapidly, But Banks Still Steer Clear

Posted on August 18, 2017 by admin

Cannabis leaf scattered on the dollars. Seamless image Next year, billions of dollars are expected to flood the California’s marijuana industry when recreational cannabis is made legal. Even so, these businesses will struggle to secure the services they need with their local banks. But why would such a profitable industry with so much potential experience issues securing solutions with a traditional lender?

During the Obama administration, guidelines were issued by the Justice Department that were intended to help banks avoid federal prosecution when providing services to legal marijuana businesses. However, banks remain unwilling to work with these merchants for fear it will expose them to legal trouble from the federal government. According to The Los Angeles Times, an estimated 70 percent of cannabis businesses have no bank accounts.

As of now, marijuana is still illegal on the federal level; the Drug Enforcement Administration classifies it as a controlled substance with no accepted medical use – listed alongside heroin. Thus, federal government heavily regulates the banking industry. The Justice Department is concerned that profits in legal marijuana states could easily be funneled to gangs are cartel. The rules are supposed to act as a shield for banks, protecting against charges like aiding drug trafficking.

From the banks perspective, it can be difficult to be fully confident in determining a marijuana business’ true intentions. Most banks find it a heavy burden to decide whether the business is operating within the law, and therefore shy away from working with these merchants. The risks are simply too high for financial institutions.

There are a few banks and credit unions who are still willing to handle marijuana business’ money, but very few. In 2015, Colorado tried to set up a credit union specifically for the marijuana industry, but was blocked by the Federal Reserve. In another attempt, the Oregon Department of Revenue created a secure office for these businesses to drop off and count cash.

Overall, this situation has created a very unstable, unsafe atmosphere for legal marijuana businesses to operate in. How many industries involve business people walking around with millions of dollars of cash? To get around this problem, some merchants open bank accounts by setting up a nonprofit organization or management companies with an ambiguous, in hopes of misleading banks.

There are much safer and straightforward options available. An increasingly popular solution to this ever-growing problem is a marijuana merchant account. Alternative providers – like marijuana merchant account, also known as MMA – specialize in providing the payment processing solutions and business funding this industry needs. Depending on the business type, merchants can secure either a recreational or medical marijuana merchant account in as little as 24 hours.

While many are optimistic about the marijuana industries future, for now, the safest options for merchants remain either in cash (still extremely unsafe and impractical) or an alternative solution; such as a marijuana merchant account from a high-risk provider.

Nationwide Support Grows for Legalized Marijuana

Posted on December 16, 2016 by admin

Indoor Marijuana Grow Room with Plants in Soil Under Lights With many states offering up legalized recreational or medical pot on their ballots this week, nationwide support is growing for its legality. According to the Pew Research Center, 57 percent of U.S. adults say the use of marijuana should be made legal, while 37 percent say it should be illegal. Ten years ago just 32 percent favored legalization, while 60 percent were opposed.

Traditionally, young adults have been behind the shift of public support, but now support is rising among millennials and baby boomers as well. Another big factor is results. With more and more of us wanting natural remedies to combat our ailments and illnesses, marijuana is leading the charge – and often with the best results.

25 states, plus D.C. and Puerto Rico offer legalized medical marijuana, and between recreational marijuana and medical marijuana it is on the ballot this week in 9 other states. But, what happens if it does pass? What will change? Well, for one many more Americans can buy their much-needed and much-wanted medical marijuana.

And for merchant, the opportunity to open a dispensary arises. But here in lies the issues. It can not only be hard to get your dispensary opened, but also to get it funded and toy accept anything other than cash payments. Since this industry is still in the “high risk” category, it can be hard to find a cooperative marijuana merchant account provider – but it isn’t totally impossible. You just need to know what to look for.

You need to look for a processor that understands the industry. You need to know that they understand that it is a tough industry, and that the Fed’s still hate it and make it tougher every day for merchants to become successful. You need to know that they are looking out for your best interests – and not just their own financial needs.

Once you find this merchant account provider, you still need to make sure that they truly understand the issues in the business, and that they keep up on all changes that come along.

Summary: More and more Americans are wanting legalized pot. In this article, you will learn how this can benefit merchants across the States.

MMA Provides Credit Card Processing for Cannabis Medical Merchants

Posted on August 12, 2016 by admin

Marijuana merchant (MMA) recently announced that it now offers credit card processing solutions for medical cannabis merchants. In the past, only retail dispensaries were able to utilize MMA’s PIN based programs, due to industry regulations. Now, MMA can offer wireless payment processing services through its PIN system for delivery or mobile dispensaries; this new solution allows mobile dispensaries to accept payments on the go.

Securing credit card processing for cannabis medical merchants is a very big struggle. Traditional sources quickly shy away from the MMJ industry and refuse to offer their services. Even if they would like to welcome their business, current regulations make it difficult, if not impossible. This forces merchants to resort to a cash-only business, while other industries considered “high risk” enjoy credit card processing.

With MMA, on the other hand, cannabis medical merchants can have their funds from transactions deposited into their accounts every 24-48 hours – regardless of their “high risk” business type. Thus, allowing merchants to avoid keeping excessive cash on hand and cancel out the temptation for thieves. MMA’s simple, streamlined application process, low rates and quality customer service has made it one of the fastest growing payment processing websites on the Internet.

According to MMA, “We provide safe and secure credit and debit card payment processing using our PIN based program designed specifically for the MMJ industry. Dispensaries have faced many challenges when trying to start accepting electronic payments at their locations.”

“Our merchant advisers can answer all your questions and recommend solutions that will help your business reach its financial goals.”

Located in Los Angeles, CA, Marijuana Merchant Account’s (MMA) expert team have been and continue to be strong advocates of the medical marijuana industry. Their solutions – specifically tailored to meet the unique needs of the MMJ industry – have made it both easier and safer for patients to access their medicine. MMA is dedicated to providing the very best in electronic payment processing to the medical marijuana industry.

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