Medical Marijuana Legalization Inches Closer in Pennsylvania

Posted on October 8, 2014 by admin

Medical marijuana is getting a lot of press, and of the most prevalent places is in Pennsylvania. There are currently 23 states, plus Washington D.C., that offer legalized marijuana. While this is promising, there are many things that merchants should consider before opening a medical marijuana dispensary.

First off, make sure that it is truly legal in your state before applying for a business license. Many times, when legislation is enacted, it makes the news, but it isn’t actually the law for months. Selling marijuana in a state where it is illegal is, well, illegal. It’s better to be safe than sorry, and it is always possible to go to your local state’s .gov website to see if a bill has been signed into law.

Also, you need to make sure that you are fully prepared to deal with the payment systems aspects of having a medical marijuana dispensary. While your merchant account processor may love you now, if you add the selling of legalized medical marijuana to your shop, they may decide that they do not need your business. This is because legalized medical marijuana is considered to be “high risk”, due to an increased percentage of fraudulent activity. This should not be a reason to dump an existing account, but sadly it is all too common. To avoid this, you need the services of a high risk marijuana merchant account, you need www.marijuana-merchant-account.com.

With marijuana-merchant-account.com, you will have an allied partner in the legalized medical marijuana business. We do not charge outrageous fees just because your business is considered to be “high risk”. We understand the great benefits medical marijuana offers to users, and we help provide you with the technology to keep your business running smoothly. It can be tough to find a high risk, medical marijuana merchant account, but you have found the right partner for your business.

To set up your Marijuana Merchant Account contact us today!

The Concern with Marijuana Cultivators Water Use

Posted on May 1, 2014 by admin

Marijuana cultivators illegal and legal in Northern California are possibly draining all the water from a region that is shadowed in drought. The streams and rivers are already running dry and the cultivators are sucking what little water is left out of them.

California Department of Fish and Wildlife are finding streams that will probably dry up this year, and the agency feels it is more than likely the marijuana cultivators behind this serious problem.

“Essentially, marijuana will consume all the water that is left, every bit of it, “said State Fish and Wildlife Senior Environmental Scientist Scott Bauer, who specializes in salmon recovery who is currently working on a study of this problem. Hopefully these finding will be released soon, and we will know the real impact of this unregulated industry.

California has been on the radar for a while for polluting the streams and the forest with the use of pesticides and trash. California also has had a history of bulldozing trees and earth to make clearings for gardens.

A red flag goes up when the State Fish and Wildlife see a huge spike in water usage; this is usually an indication that there is a very big possibility that you will find a pot cultivation operation being run.

Over time this increase in water usage will add to the drought conditions, which in turn will add to the habitat degradation and kill off the restoration efforts that many have worked to replenish, and replace.

“The destruction of a habitat is actually quite staggering” said Patrick Foy, a spokesman with the State Department of Fish and Wildlife. “Last year, 24 North Coast salmon-bearing tributaries were reported to have gone dry, though not all were verified by the agency” said Bauer

Even if California was not having a problem with drought there still would not be enough water for the marijuana cultivators because the plants require a vast amount of water and the industry is growing rapidly.

Illegal marijuana was confiscated in California by law enforcement recently it totaled between $2-4 million dollars annually it was estimated that the cultivators used 1.8-billion gallons of water over a five-month growing season which was based on the average water usage documented in a study.

Satellite images, give researchers the information they need to determine that approximately 30,000 legal and illegal marijuana plants are growing all along the four major watersheds just in Mendocino County alone, and there are probably tens of millions more in neighboring Humboldt and Lake counties.

Each plant consumes an average of six gallons of water a day, so the plants in question located in Mendocino County probably consume 180,000 gallons a day from each watershed, which is the size of a 160 foot Olympic-sized pool/spa.

After Colorado’s Legalization of Marijuana there are still more banking questions than answers

Posted on March 17, 2014 by admin

The new banking guidance issued by the federal government has left the cannabis industry with more questions than answers, thanks to federal laws that still state that marijuana is still illegal. Many in the industry hoped the memos, would open the floodgates for cannabis businesses to begin accessing traditional banking services.

However, there are some indications that the guidance might not have real implications. Many mainstream financial institutions and banking organizations said they would need to see concrete changes to marijuana’s federal classification under the Controlled Substances Act before they will work with the newly state-legalized industry. In addition, there are some in the industry who believe the guidance will help loosen the banking situation, while others are worried about a possible rise in fraudulent banking schemes.

In the days following the joint memos, major U.S. banks and banking institutions have upheld their refusal to work with the industry. Wells Fargo said the bank is reviewing the government’s new guidelines but would continue to ban cannabis businesses because, based on federal law, the sale of marijuana is still illegal. The American Banking Association stated similarly that cannabis businesses can still face federal prosecution and assorted sanctions.

Regardless, cannabis entrepreneurs should be extremely cautious of frauds and false banking opportunities during the coming weeks and months, as it is sure to run rapid. These companies probably will send the money to an offshore account, or into an aggregate account under the businesses’ name. Both banking practices are illegal, and should be reported to authorities if you are contacted by one. The best thing to do is to try to deal with a local, trusted, reputable bank when looking for loans and accounts.

While the monetary value of the legalization of marijuana is fantastic for Colorado, however federal banking laws may hinder business success. Business owners should be careful dealing with any type of financial institution, regardless of their business, but especially with business that are as risky as the legal marijuana business. When in doubt, stay with familiar banking names, and always make sure you are speaking to a banking manager when doing business.

Denver Joins Chorus Calling for Marijuana Banking Access

Posted on January 23, 2014 by admin

The city council in the region of Denver, Colorado plans on motivating the federal government to support the construction and development of banking services. Millions of dollars are also expected to be generated due to the recent licenses that are given out in the region. Cannabis can now be grown and the Companies can function without any restrictions in regards to payment, payrolls and deposits. The Government is expected to also provide guidance so that financial institutions can smoothly work with the Cannabis Companies. A Councilman named Chris Nevitt pinpoints that Denver, Colorado is paving the road for the future as they show how the process is done correctly and efficiently. The Federal Government does have to get involved though so that the process is smooth for the Cannabis businesses.

The council does have many doubts for the cash business such as it being difficult to pay taxes and increased theft. The lack of financial services is another main worry for Marijuana Merchant Account holders. The Justice Department is also planning on giving a yellow light to the cannabis Companies as they want to work in harmony. The guidance is definitely needed for the cannabis Companies as safety and growth in the industry occurs. Many individuals are debating the issue of whether Companies should be allowed to function, let alone distribute Cannabis to the public. Proponents pinpoint that Cannabis has many soothing and positive effects on the body. People against Cannabis state the negative effects such as tearing down the body structure. Even though there are many proponents and people against Cannabis, the drug will be allowed to be sold in the region of Denver, Colorado without any severe restrictions. Overall, the Cannabis Companies will need support from the banking services in order to function properly in the near future.

Apply for a Marijuana Merchant Account TODAY!

US Treasury to Discuss Marijuana Dispensaries and Banking Practices

Posted on December 17, 2013 by admin

Basic business practices in a credit-dependent economy mandate the necessity for a merchant account. Opening a merchant account allows for your small business to accept credit and/or debit transactions. In an economy and society that’s increasingly cashless, this is a must-have for any business. For a marijuana dispensary merchant accounts can be exceptionally difficult to open. Banks will not grant applications and open merchant accounts for marijuana dispensaries for fear of prosecution by the federal government as complicit in money laundering.

The Department of Justice released a memo on August 13, 2013 which promised deference to state laws and regulations regarding marijuana dispensaries. Marijuana has been legalized recreationally in two states, Colorado and Washington, and is permissible for medicinal purposes in 18 other states and the District of Columbia. The marijuana industry is estimated as a 1.7 billion dollar industry; an industry that is highly lucrative for high-risk entrepreneurs.

The US Treasury will discuss with banks about federal plans regarding the DOJ’s new deference to state regularization. The federal government remains active prosecuting marijuana dispensaries that advertise to children, carry marijuana across state lines, are associated with criminal organizations, and other areas that pertain to marijuana’s federal status as a controlled substance. Yet, lawyers for the American Bankers Association maintain that, in reality, the status quo for banks refusing to open accounts for marijuana dispensaries will remain as it is at present.

For investors and entrepreneurs involved in the marijuana industry and dispensaries, the complications from banks and opening merchant accounts will remain for the short term. Until the US Treasury and Department of Justice solidify a firm stance on whether banks can be prosecuted for money laundering by handling proceeds from illegal activities, banks will not risk opening accounts for marijuana dispensaries. Dispensary owners will be forced to continue to pursue alternative means such as online merchant account brokerage companies that can offer the services they require.

55% Favor Marijuana Legalization in California

Posted on December 10, 2013 by admin

Marijuana Business Daily – December 5th, 2013

The majority of Californians now favor legalizing marijuana for the first time ever, according to a new Field Poll.

The survey, which includes responses from 1,002 registered Californian voters between Nov. 14 and Dec. 5, found that 55% now favor legalization.

Just 31% said they support strict enforcement of the current laws or the passing of tougher laws governing marijuana. Another 12% said they support the current ban on recreational cannabis but believe the government should ease penalties.

Has your Marijuana Dispensary been discriminated against?

Posted on November 22, 2013 by admin

There is something that screams trouble when it comes to the stories of Marijuana and the dispensaries that process the payments. Mary Jane, as it has affectionately become known over the years, has made great headway into the headlines over the last few months. 17 of our 50 states now have legalized the medical form of the herb mostly for those suffering ailments that we don’t always understand. The herb has been made into paper, clothing, medicine and even a stomach ailment. Helping those that can’t eat to maintain a steady diet and calm their stomach.

If you have a medical marijuana merchant account and you got shut down, it was from Federal Fear that that was grown from. Not too long ago, the Department of Justice came after the herb growers and the dispensaries. They threatened the merchant account servicers, Visa, MasterCard, Discover and American Express with thoughts of loss and arrest if they were involved in any shape or form with marijuana accounts. Well who in their right mind is going to fight with that strategy? They have bigger guns and prosecutors that yell very loud.

As time has passed

Since then, new laws have come into effect and State and Federal Senators, among others, are changing the laws. They have backed off the dispensaries and allowed them to do some good rather than be fraught with evil and uncertainty.

Up front

For customers you have to be in the dispensary with a pin based system to purchase the product, and only a few of the merchant account servicers have come back out of the wood work. Much like the fairytales with the wicked witch, they are tiny rabbits shivering behind whatever they can find to stay safe. Do you blame them?

Specifically

In order to find the marijuana merchant account servicers you need to do a specific search for their services. They might even be a bit skittish, but they were brave enough to try and it’s that attempt at some normalcy that they are reaching for.

Since this is a high risk merchant account, your services may cost a little more than most, but under the circumstances, it is understandable. You will just have to adjust to the cost and pass it on. With the advance of debit and credit card processing, it can only make things a little easier than they were.

Here’s hoping

For those scared rabbits out there, the tunnel is slowly clearing. Dispensaries are coming out of the wood work to do business above ground again. They don’t want to have those large sums of cash on them and would prefer to have the ability to process the debit/credit card amounts over the wires. They want to be secure like everyone else in the merchant account servicer processing arena. So, everyone take a deep breath and try this again.

The Department of Justice has promised that if a dispensary is running within the law, they will be left alone. Let’s hope they get a chance to do that very thing.

How to get a Medical Marijuana Dispensary Merchant Account

Posted on November 8, 2013 by admin

According to ‘The Green Sheet’ the Department of Justice is backing away from regulations governing medical marijuana dispensaries. In a statement in August 2013 they stated that as long as they continue to follow the laws governed by the states, they would no longer harass them and close them down.

Twenty one states have legalized marijuana for medical purposes and sixteen states have legalized small amounts in possession. No one knows for certain how the laws will continue to change, but know, if you are on the lookout for a medical marijuana merchant account, now is as good a time as any.

Kayvan Khalatbari

Kayvan is a part owner in a medical marijuana dispensary and was still having difficulty in May of this year getting his merchant account approved. With the new statement released this fall, he should be taken off the TMF file, or black list, as it is affectionately called, and be able to get his new merchant account for whatever business he has open.

Go shopping

It’s a lot easier now. The government has backed off on the merchant account servicers as well. Their threats of shutting down the merchant account servicers, because of their association with the dispensaries has gone away, at least for the most part.

Go online and find merchant accounts that have a specific knowledge about marijuana dispensaries and their needs. They will be advertising such a notion, and your account will have a bigger pull with them, than any other. They are the one’s waiting for your business.

No longer

I wouldn’t pull those ATM’s off your lot, but know that you have another option with the merchant services. Now your customers can pay online, if you have a website. If not, you can process their debit and credit cards right there and having that ATM on site gives them one more option. If they need some extra cash for later, you have the ATM to process that request for them.

Wireless

If your business is in an area that you can get cell service, you have the option of processing payments from your smart phone. Many new pieces of technology have adjusted to the growing demand of payments on the fly. Hair stylists have opted to have their customers pay with the little ‘Square’ and its applications for adapting to their cell phones. A quick signature and the customer receives a receipt in their email, with all the pertinent information.

As an on the go type business, a dispensary can do the same thing. Processing customers as you find the right product for them without seeking out the cash register. On the spot payments speed up transactions and help the customer get on with their day without waiting in lines.

All in All

Look for the professionals that are seeking out your business. The medical marijuana merchant account will still be in the high risk category, but a few extra pennies to help with the production of sales, is a small price to pay for the convenience. Ask a lot of questions and know how that merchant account servicer feels about your account before you sign up. You want to feel comfortable about where your money is. Good luck with your merchant account.

How to finance your medical marijuana business

Posted on November 8, 2013 by admin

With more and more states emerging as potential cannabis markets, many entrepreneurs are now interested in starting their own medical marijuana business. As the industry is growing rapidly, many new small business owners who are looking to capitalize with the new market are asking the same key question, how much capital they need and how to finance their medical marijuana business?

According to a few estimates, you may need $15k to $100k to start a medical marijuana business application which will grant you the license to legally do so. Consultants and law firms are charging more and more money as more people become interested in getting a license and starting their own Marijuana business. This indicates that obtaining a license, setting up a website, getting a marijuana merchant account, a shop and going through documentation and legal complications may require a good amount of capital for starting.

So how can you raise funds to finance your medical marijuana business when the banking sector is turning more hostile towards medical marijuana industry due to legalities involved as medical marijuana is still illegal under federal law?

Options for funding your Medical Marijuana Business

Private Investors

With absence of the banking sector, private investors are a great source for funding your business, but it can come at a high cost. With no other alternates available, private investors are charging as high as 25% in interest rate. This rate is often not healthy for sustainable business especially for the medical marijuana industry that also has to pay unusual high federal taxes.

Angel Investing and Venture Capitalist

The other option to get funds is finding an angel investor. In this case, a rich doctor or a successful entrepreneur who agrees to invest in your business by sharing the equity of your business.

Finding a venture capitalist who can invest money in a promising business by sharing the profits is another option. This way, merchants can save the high interest rate, but they need to share the percentage of their business with their investors. The medical marijuana business is doing excellent in terms of profits and growth in states where it is legal, so finding a good angel or venture capitalist is not difficult if you know how to connect with them. A good option is to visit your local business chamber and connect with some of the angel organizations.

According to Adam Bierman, CEO of popular dispensary consulting firm, one pound of pharmaceutical grade marijuana costs $1000 to produce but it sells at $7,500 retail price. This indicates that the huge margin of profit in the medical marijuana industry can lure in big investors easily if you know how to sell your business plan. According to estimates, the $1.5 billion industry in 2013 will expand to $3.3 billion within next two years. With more than 100% promising growth in just next two years, investors are rushing in but you need to make sure that you are finding the right investor with affordable interest rates or favorable equity sharing.

Will my Marijuana Use Prevent Me From Getting Life Insurance?

Posted on October 21, 2013 by admin

This is often a tricky question, but when it comes to Marijuana use, everything is tricky from its legality to finding a medical marijuana merchant account for your medical marijuana dispensary. According to the latest reports, 18 States in America along with Washington DC have allowed the medical use of marijuana but it is still outlawed under the federal law. This adds to the confusion for users of medical marijuana about many related questions, including if they can get a life insurance or not for using marijuana.

To be true, many insurance companies are still confused how to go about the new legality of marijuana in 40% of the States in America. This is a common scientific fact now that marijuana has medical benefits, the reason why it is now legal in many states. Today, the use of medical marijuana is becoming more and more common in United States, something that most life insurance companies were not prepared for.

So what are the scenarios for a person using medical marijuana when it comes to getting life insurance? There may be multiple answers. First, you may run into the company that simply will not allow you to get life insurance for smoking marijuana. These companies are still living in past or don’t know about how to get around the new laws related to legality of medical marijuana in many states.

Some of the other companies may look good for getting life insurance, but they will ask you to pay more for your life insurance as they put you under the category of smokers. In such cases, if you are tested positive for THC, they will not reject your application but you will ask to pay more as a smoker even if you’ve never smoked a cigarette in your life. For these companies, smoking cannabis even for medical use is enough to make you pay higher rates designed for cigarette smokers.

The third and most proactive insurance companies are well aware of all the legality and news related to medical marijuana and they allow you to get life insurance very easily. To find such insurance companies, you can also visit online medical marijuana dispensaries where you buy your medical marijuana, that will share that information with you. With the resolution of medical marijuana merchant accounts, hundreds of online medical marijuana dispensaries are selling medical marijuana online and provide useful information about all the related topics.

The problem with the third type of insurance companies is that they do not have standard laws related to marijuana use. They all have different set of terms and conditions for the cannabis smokers so you need to explore these insurance companies to find the one that best suits you and your lifestyle. For example, American General only allows you to smoke twice a month otherwise your rates will be increased as a regular smoker. Columbus Life provides you with a life insurance based on drug tests. If it is for medical use, you can get a better rate but if heavy use is proved, you will be declined.

In a nut shell, getting a life insurance on normal rates is possible but the choices are limited. So you need to dig into details before getting life insurance from any renowned insurance company.

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