Tag Archives: medical marijuana payment processing

Washington D.C. Bill Keeps Marijuana illegal for At Least Another 2 Years

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Washington DC MarijuanaWhile marijuana is becoming legal in more and more states, Washington D.C. seems to be regressing with their new bill to outlaw the drug until at least 2017. With this bill, there is no hope for cannabis to become legal any time soon. Nonetheless, marijuana advocates still believe that this is good news. More than 75% of Washington D.C. voters have voted in favour of legalizing marijuana. House has not placed a direct ban on the drug, which means they are open-minded and aren’t attacked pro-cannabis advocates.

Medical Marijuana Use

While medical marijuana use is legal in 25 states across America, it remains illegal with the federal government. This causes these businesses to be considered high risks for most banks, making it incredibly difficult to find a medical marijuana payment processing service. With such high risk, no banks want to work with these businesses, allowing them to accept cash only. Cash only businesses are risky businesses because they essentially need to carry around thousands of dollars at all times. It’s about time for the government to rethink their standing on this issue.

Not only does accepting cash only make marijuana businesses risky for the owners, but it also prevents the government from making additional tax dollars. If Washington D.C. were to legalize marijuana use, it would be predicted to be a $130 million dollar industry on a yearly business. This means $20 million dollars in tax dollar revenue for D.C. alone. Bringing in so many extra tax dollars could be great for the city, yet we still need to wait until 2017 before seeing this become a reality.

In the meantime, cannabis advocates are working hard to bring medical marijuana to more and more states. The DEA has even been informed to not raid dispensaries in states where marijuana is legal, which is a huge step forward for the federal government.

For medical marijuana payment processing solutions contact us today!

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Banks Remain Wary of Marijuana Businesses as Alternative Payment Processor Step In

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Marijuana and Dollar notesBanks have historically been mostly unwilling to work with different state-legal marijuana dealings across the US. Their cageyness has been founded on the fear of being implicated as cash launderers. This has traditionally forced marijuana-related businesses to trade exclusively on a cash-only basis, which always comes with some risks. It puts both the venders’ as well as the buyers’ safety at risk of being subjected to burglars.

Following the government’s gesture towards a free marijuana economy, some banks in the US are now opening their doors to businesses related to marijuana across the nation. They have however shown considerable caution in their acceptance of these business dealings. They remain wary of the dealings. Some of them have conversely continued to shutter the accounts run by marijuana businesses that’s presenting the marijuana merchants with challenging medical Marijuana payment processing across the country.

As a result, it encourages auxiliary account service providers such as MMA to step in and offer payment processing services to Marijuana dealers.

Details from a New Report

A new report from the Treasury Department’s Financial Crimes Enforcement bureau obtained by Dynamic Securities Analytics, a financial regulatory analytics firm now presents information regarding the undercurrents of the marijuana-banks relations over the recent business period.

The reported data reveals that financial bodies in different US states have filed over 1,700 reports on marijuana-related businesses in compliance with the FinCEN guidance. The guidance present details to direct the activities of the banks as they deal with marijuana related businesses. According to the report, this is the number of businesses being offered traditional banking services.

The businesses are said to be in full compliance with federal guidance and their various state laws according to the banks.

The FinCEN guidance directs that banks working with state-legal marijuana traders must report their undertakings in a report termed “suspicious activity (SAR)”.

The SAR has three classifications namely ‘limited’, ‘priority’ and ‘termination’. If a bank files the ‘limited’ SAR, it means that they are working well with the businesses related to marijuana and the businesses have not shown any evidence of violation of state laws or federal guidance.

In the recent report, over half of the total number of SARs reported (3,157) were classified as ‘limited’. Nearly the same number of banks are also said to be filing the ‘termination’ report. This means that they are quitting services extended to the marijuana related businesses.

This is their way of maintaining compliance with federal rules on money laundering programs. A total of 313 SARs filed were of the “priority” classification. They are banks that believe the marijuana businesses they are working with may have been in violation of certain state laws or the federal guidance.

Contact MMA for Medical Marijuana Payment Processing Solutions Today!

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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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Banks Remain Cautious When Dealing with Medical Marijuana Deposits

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Geschftsmann, Balance, Seile - IllustrationMedical marijuana is definitely becoming a more mainstream discussion with over two dozen states legalizing its use. However, it still remains illegal on a federal level, making it incredibly difficult for medical cannabis businesses to push forward. Dealing with banks is nearly impossible since no bank wants to deal with the risks of federal legalities. This leaves cannabis businesses with very few options.

A cash-only way of business remains the most common way for marijuana businesses to accept payments. This requires patients to physically go to marijuana dispensaries and pay in person, which is often difficult for patients who are dealing with life-threatening illnesses.

At the moment, roughly 200 banks in the entire USA are willing to work with cannabis businesses. This is an incredibly small amount, especially when you consider how complicated it is to get accepted to begin with. However, for a medical marijuana business to push forward and make a considerable amount of profits whilst increasing customer satisfaction, being able to accept credit card payments is a must.

Medical Marijuana Payment Processing

Some merchant processors such as MMA work with offshore banks that specialize in getting marijuana businesses approved for merchant accounts. These merchant processors make it easier than ever for cannabis businesses to accept credit card payments and increase their profits. Not only does it allow medical marijuana businesses to increase profits, but it also allows for a greater amount of customer appreciation.

Most medical marijuana patients are suffering for intense illnesses that make it nearly impossible for them to leave their homes. With medical marijuana payment processing, you can often benefit from a mobile card reader, allowing you to make home deliveries.

This is without a doubt, a game changer in the world of medical marijuana sales. It provides businesses in the marijuana industry with the ability to accept payments online, to get paid via credit cards in person and even make home deliveries. It also allows cannabis businesses to step into the 21st century and move out of the cash-only way of doing business.

As time goes on, these medical marijuana payment processing options will grow. With the potential to accept payments online comes the ability to make payments through mobile phones and even tablets. The options are limitless, and medical marijuana will become easier to get for patients than ever before.

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Studies Confirm that Cannabis can Aid in the Treatment of Diabetes

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medical marijuana payment processingThere are many illnesses that have been declared treatable with medical cannabis. Proponents of medical cannabis have used the drug to treat illnesses throughout history. Today, medical cannabis is being prescribed for numerous illnesses and ailments as a form of treatment. Medical marijuana is being prescribed for anything from sleeping disorders and aches and pains to chemotherapy, Alzheimer’s Disease and diabetes.

As the debate over the legalization of medical marijuana continues – it is still currently illegal on the federal level, despite legalization in many states – it has not prevented studies to be conducted concerning the benefits of medical marijuana. Recent research done by the University of San Diego has revealed that cannabis actually reduces treatment-resistant neuropathic pain.

The fact that cannabis helps with treating insulin resistance has already been studied and determined to show promise. The study revealed that those who smoked pot were less insulin resistant. Now, upon further research, it has been determined that cannabis can also aid with the pain that those with diabetes suffer from. It even when as far as giving the possibility that cannabis can prevent it.

The sixteen patients who underwent the study all suffered from painful diabetic neuropathy. When they inhaled the cannabis their pain was considerably lessened. The higher the THC content of the cannabis inhaled the less pain they felt. While the studies’ results cannot be declared definitive, it has encouraged further research regarding how medical marijuana can impact the treatment of diabetes.

Even though studies have shown that medical marijuana positively impacts patients, the amount of research that can be done is restricted due to the illegal nature of the drug on federal level. This also has and continues to make it difficult for those trying to run or open dispensaries for the purpose of providing medical marijuana.

Fortunately, there are providers that are willing to work with those in the marijuana industry despite the “high risk” label given by traditional lending sources. Medical marijuana payment processing is become the go-to solution for those trying to run or start up their business in the medical marijuana industry. The simple, fast and hassle-free application process has and continues to make it easy for businesses to receive the solutions they need without the endless documentation requirements and credit checks.

For medical marijuana payment processing contact us today.

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Legal Marijuana Industry Sheds Light on Its Long Illegality

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Medical Marijuana Payment ProcessingMillions are locked up every year for drugs in the United States, and a big percentage of those are for marijuana possession, usage, or manufacturing. The rush of states to legalize pot have made many wonder what happens to those who were locked up before its legality. The green brings pleasure to many and cash to some, and while the Feds still outlaw it, the rapid legalization of states may soon turn the tide on what once was a promising war on drugs.

Legal or not, there will always be pot smokers. The states that have legalized marijuana for recreational use (such as Colorado), and the states that have turned possession into a simple ticket (New York) are setting the stage for the rest of the United States to bring leniency to the users to the drug. What separates marijuana from drugs such as ecstasy, cocaine, and heroin, is that marijuana is grown and dried, with the majority of the time no additives. No processing other than sunlight, and no kitchen chemicals. While the new legality in many places should affect the prison sentences of pot dealers, traffickers, and users, it more than likely will not. In the early 2000s, Congress passed laws to bring leniency to crack cocaine prison terms. This change did nothing to tens of thousands who were already incarcerated for the crime, and the same will probably happen with marijuana.

However, these new legalization’s make it a great time for a merchant to hop onto the medical marijuana bandwagon. Twenty-three states, plus Washington DC, have legalized medical marijuana, and others, such as Colorado and Georgia has legalized medicinal cannabis oils for certain chronic and terminal conditions. This is a rewarding industry, and it can be lucrative, as well. While rewarding and lucrative, it can be a pain in the neck to file a reputable medical marijuana payment processing account. Luckily, it can be done if you do your research. One of the top-rated over the last 10 years is MMA. Ten years is a long time in any business, and the knowledge of MMA’s staff can help you get the right foot in the door with the local governments to ensure your medical marijuana business is not only following the laws, but also following payment processing mandates, as well.

Contact MMA today!

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Congress Shows Little Interest in the Marijuana Industry’s Banking Problems

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Washington DC Capitol detail on cloudy skyDespite the pleas from marijuana businesses and medical marijuana users, Congress has revealed that it has no intentions of resolving and addressing the issue of legalizing marijuana any time soon. While nearly half of the states have one small victories in legalizing marijuana, it is still illegal on the federal level.

Congress has shown little interest in dealing with the conflict that continues between federal and state laws. The problem is that it has caused and continues to be an issue for the marijuana industry to find the banking solutions that they so badly need in order to operate.

This banking crisis has left business owners all over the country with no way to deposit their profits and to find payment processing solutions. In addition, those who wish to start a business in the industry are left with the difficult or impossible task of securing a small business loan via traditional lending sources.

In an effort to find a solution to the problem, a credit union was created in Colorado just for the marijuana industry. However, the only way this credit union can officially open its doors is through the approval of the nation’s top financial policymakers.

U.S. Rep. Scott Tipton recently stated in an interview that it is unlikely that the Federal Reserve will act anytime soon concerning this request by the marijuana-only Fourth Corner Credit Union for the direct access of the nation’s banking system. He did acknowledge the fact that he has been told privately by several bankers that they would like to be able to work with businesses that are legally growing and selling marijuana in Colorado; however, they fear being accused of money laundering in the eyes of federal law.

While Congress recognizes the need to bridge this gap that lies between state and federal law, no solution is expected anytime soon. In the meantime, Sens. Kirsten Gillibrand, D-N.Y., Cory Booker, D-N.Y. and Rand Paul, R-Ky., have introduced a bill that would ultimately end the federal prohibition of medical marijuana; thus, making it must easier for banks to work with medical marijuana businesses.

While things are still sorting themselves out, the marijuana industry has found other solutions to their funding and payment processing needs. Alternative lending providers that specialize in working with businesses considered “high risk” by traditional lenders have stepped up to the plate. They not only offer merchant cash advances that are better suited to the industry’s funding needs (in addition to being faster and more hassle-free), but they also offer safe and efficient payment processing solutions. Many marijuana businesses are finding their needs met by marijuana payment processing.

Apply today!

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President Obama Sees the Political Advantages of Cannabis

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medical marijuana payment processingPresident Barack Obama has recently been opening up on the topic of cannabis and its benefits. Many are viewing this move as political. At the beginning of April 2015, Obama traveled to Jamaica for a conference of Caribbean nations before heading to a summit in Panama.

Jamaica is known as a pot-friendly culture, even though marijuana possession and use was illegal up until this past February. The new law allows possession of up to 2 ounces, legalizes it for religious use and the cultivation of a small number of plants. The general feeling is that this new law will make way for even more rules to be implemented for the medical use of marijuana.

For decades, the Jamaican parliament has wanted to begin an effort in the United Nations to begin a study of amending international treaties that would ultimately lead to a drug reclassification of the substance. However, no move has ever been made to do so out of fear that the United States would halt any attempts.

With the general view on marijuana changing in the United States, Jamaican officials are beginning to show interest in returning to this effort. Americans have become more and more accepting of marijuana for both medical purposes as well as recreational.

According to “Bloomberg Politics” writer, Margaret Talev,  “The Gallup Poll found that tipping point in October 2013, when 58 percent of Americans said they favor legalization, up from 50 percent in 2011, 31 percent in 2001 and just 12 percent in 1969”.

Americans’ view on marijuana is not the only thing that is changing. The change in attitude is also allowing the U.S. an opportunity to feel comfortable enough to re-examine certain laws. These changes, coupled with the fact that President Obama has commuted 22 drug offenders and a life sentence for conspiracy to grow and distribute thousands of marijuana plants this month, has begun to set the political stage for the 2016 elections.

Nearly half of the states have legalized medical marijuana, with four states and the nation’s capital going as far as legalizing recreational use for adults. Nine or more states have adult use on the ballot for 2016, and Republican presidential hopeful, Senator Rand Paul, is backing bipartisan legislation that would remove the threat of federal prosecution of medical marijuana in the states that have already legalized the substance.

Regardless of these changes, traditional lending sources remain hesitant to offer their services to those involved in this industry since marijuana is still illegal on the federal level. For now, businesses are continuing to seek medical marijuana payment processing. Fortunately, these providers specialize in working with “high risk” industries – like the marijuana industry – and have no scruples with continuing to offer their services.

To accept other payments than cash at your dispensary, contact MMA today!

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Will Increase in Competition Crash the Cannabis Industry in Colorado?

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800x600-e922-odkazujeme01aRecent changes to Colorado’s recreational marijuana market has created a boom in the industry, but has left some afraid of over-saturation. Last October, the state ended its vertical integration rule and opened the market up to new entrants. Although the move has spawned a plethora of new businesses, it has also started conversations of impending price collapse and a fear that merchants will turn to the black market to reap lost profits.

Many growers believe the influx of new entrants will lead to a price collapse in the coming months as stand-alone growers increase competition and flood the wholesale market. On January 1, 2014, only medical marijuana facilities were granted Colorado permits, but last summer the state opened up the application process to businesses who were previously ineligible. This ended a crucial requirement that recreational shops grow at least 70% of the marijuana they sell.

Since the change, the number of recreational licenses in Colorado has jumped by 35% (870 licensed businesses). With this much added competition, fears of price declines may be well founded. According to Cannabase, an online marketplace that pairs growers with retailers, the price of recreational marijuana plummeted $600 per pound between September and December of 2014, while supply jumped at the same time. Cannabase CEO, Jennifer Beck, adds that the margins are now being squeezed in the state which could lead to a price crash.

Michael Elliot, the executive director of the Marijuana Industry Group, is concerned that the price drop could lead to desperate cultivators to turning to the black market to get better prices. If this happens, it would be a violation of one of the core eight principles defined by the Department of Justice. This would jeopardize the issuing of new licenses throughout the state.

Still, increased competition is good news for some in the industry. Businesses that deal in edibles now have more to choose from as more and more types of cannabis flood the market.

Despite the success of the cannabis businesses in Colorado, many merchants still find it difficult to secure competent recreational or medical marijuana payment processing from traditional payment processors. Luckily, there are some experienced online payment processors that specialize in fast and comprehensive marijuana payment processing.

Learn more about expanding your customer’s payment options with credit and debit cards by contacting us today!

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Legalization of Marijuana Creates New Economy in Denver

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??????????????????????????????????????????????????????????????????????????????????Since the legalization of recreational marijuana in Denver in 2014, the city has created a profitable industry where individuals and businesses can thrive. Now the city officially has more marijuana dispensaries than Starbucks, making it the place to be for new marijuana entrepreneurs. Although the city has been in the center of heated debates and punchlines, marijuana’s effects on the economy are no laughing matter.

Since its legalization, marijuana has created a large job market and increased tax revenue, to the tune of $44 million. Now smart entrepreneurs are rushing to the state to grow and sell their own special strands of marijuana. Companies are popping up left and right, dealing with all aspects of the marijuana trade. Many are creating marijuana-infused products, like sodas, lotions, cookies, and other edibles.

Once marijuana was legalized in Denver, many residents were concerned that it would lead to an increase in drug related accidents, drug related crimes, and drug use in children. Thus far, these fears have not come to pass. According to a Denver Post poll, crime rates have remained stable in the city, while its car fatalities and murder rate decreased in 2014. Also there has yet to be any definitive proof that legalization has increased the use of marijuana for people under 21 years of age.

Jack Strauss of the University of Denver, recently conducted a study on the economic impact of two of Denver’s major marijuana dispensaries, Colorado Harvest Company and Evergreen Apothecary. Strauss found that the combined economic impact of both stores was seven times the impact of the average restaurant or retail store in the metro area. Tax revenue from both totaled over $1.07 million for Colorado and over $390,000 for the city.

Despite the embracing of marijuana businesses in Colorado, many marijuana merchants still find it difficult to secure competent recreational or medical marijuana payment processing from traditional lenders. However, there are some experienced online payment processors that specialize in this area.

Learn more about expanding your customer’s payment options with credit and debit cards. Contact us today!

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