Medical Marijuana Merchants Shackled to Cash Despite Security Risks

Posted on December 19, 2014 by admin

Legal medical marijuana dispensaries are squeezed between a rock and a hard place because traditional banks won’t take their business. Even though the Obama administration issued guidelines designed to help banks work with legal marijuana businesses, not many banks have taken advantage of the opportunity. Bank officials say that the guidelines still place too much culpability on payment processors, as banks are required to issue annual reports stating that their partners are reputable cannabis companies and are charged stiff penalties if it turns out that they are not legitimate. So for most banks engaging in medical marijuana payment processing is not worth the risk. This reality places medical marijuana facilities and their patients in harm’s way.

Currently, medical marijuana facilities deal exclusively in cash which has many owners worried. Harborside Health, a medical marijuana organization in California, fortifies its money and weed in several high-grade vaults with 18-inch walls reinforced with concrete. Thirty six cameras and two security teams watch the business. To pay the taxes required by the state, employees must carry bags of cash to the government offices.

Many states, like California, require dispensaries to keep detailed financial records. But dispensary owners say all the cash transactions make keeping such records extremely difficult, if not impossible leading to painful and costly audits.

Despite the risks that payment processors can face when engaging in medical marijuana payment processing, smaller banks are finding success through forming relationships with marijuana dispensaries. Still many of these banks handle marijuana merchant accounts with extreme care and discretion. For example, some will only handle small amounts of cash and may require clients to use generic names for their businesses.

Medical marijuana payment processing is a complex business that requires expert care. Learn more about expanding your customer’s payment options with credit and debit cards. Call 1-800-466-1809 or contact us below today!

Federal Taxes Crippling Marijuana Businesses

Posted on November 17, 2014 by admin

It is difficult to imagine running a business where you are unable to deduct your business expenses when filling out your Federal taxes, but this is just part of the headache that marijuana businesses are facing.

It is possible in some states to sell medical marijuana through legitimate businesses and in a few states it is even possible to sell the drug for recreational purposes and this is great news if you are looking to enter this business area.

The growth of businesses who want to help and produce marijuana is growing; it is even possible to secure a medical marijuana payment processing merchant account and to accept credit and debit card payments form your customers. However, surviving might be tricky with the amount of taxes that you have to pay.

While the practice of running a business in some states is legal, the Federal government still sees it as a Schedule 1 drug and therefore, they can use the 280E tax code, which came into force in 1982. This code means that if you sell schedule 1 drugs you are unable to deduct any business expenses unless linking directly to the drug. Advertising or staff wages are not an allowable expense and this means that many business owners are paying taxes that equate to around 70% and over, compare this to normal business owners whose tax is around the 30% mark it seems excessive.

Many business owners feel that while they have won the fight with the voters, the government is doing all they can to put legitimate business out of business. What is disturbing, if a normal business makes a loss during the year there is no Federal tax to pay, if a marijuana business makes a loss they still have to pay tax.

The problem is that Congress needs to address these issues and yet this hasn’t happened. It is important to hear the voter’s, how they feel over marijuana, the way it is helping those people in need. Now it is the time for Congress to help these businesses too.

After all, they are providing a service that is creating jobs, improving local economies and yet Federal government is looking to force them out of business.

Need marijuana processing solutions? We can help, contact us today

Florida Bay Area Pushing Hard for the Legalization of Amendment 2

Posted on October 29, 2014 by admin

The well-known attorney, John Morgan, is currently campaigning for young people’s votes in the effort to legalize medical marijuana in the state of Florida. So far, the Bay area is a main location of interest in pushing the Amendment 2 – medical marijuana.

In the beginning of October, Morgan rolled into the University of South Florida in a tour bus wallpapered with the phrase “Vote Yes on Two”. The younger generation is believed to be the deciding factor in whether or not this legislation is passed on Nov. 4.

According to a statement to WTSP, Morgan revealed that “Our opponents are counting on young people not voting. If young people vote in record numbers, we will win.”

So far, polls reveal that things are extremely close on the medical marijuana issue; thus, Morgan has been working hard to spread the word to students in the area. As Nov. 4 approaches, his belief is that exposing the issue to certain demographic groups can make all the difference.

Many who have experienced the benefits of medical marijuana or have witnessed the benefits in family members’ illnesses are stepping forward to support the legalization of the substance. However, one concern that has arisen is the unfortunate and unintended consequence of the marijuana falling in the hands of children.

As the talks continue in favor and against, the issue of the medical marijuana falling in the wrong hands has moved to local airwaves. People are very concerned that there are loopholes in the law that drug dealers will take advantage of. An additional concern is that children could obtain prescriptions without parental consent.

Fortunately for the cannabis business owners of Florida, the potential legalization of medical marijuana will brighten their future; especially since obtaining financial assistance from the banking system is still an issue. For now, the main alternative to their high risk situation is the use of medical marijuana payment processing.

For medical marijuana payment processing contact us today!

Recreational Marijuana Sells Grow Massively

Posted on October 8, 2014 by admin

In Colorado, recreational marijuana sells have skyrocketed. In fact, consumers spent more on recreational marijuana than medicinal marijuana. This lends credibility to its legalization. With its lucrative outcome, it is possible that other states may soon hop on the legalized recreational marijuana bandwagon.

Colorado legalized small amounts of recreational marijuana earlier in 2014, and soon sales were booming. These sales not only helped those wanting the product, but it also helped create jobs in the community, and tax dollars. Of course, legalized marijuana is taxed, and those tax dollars help with everything from infrastructure to roads. While only time will tell if this is a “fad” or I the sales will stay high, for the time being the extra jobs and tax dollars are something that many other states are looking at seriously.

Even if your state is not embracing legalized recreational marijuana, they may be one of the states that offers up legalized medicinal marijuana. If so, you should seriously consider offering it in your business. It is still a lucrative product, and a much wanted product. However, you need to be sure that you have a medicinal marijuana payment processor. Mainstream payment processors tend to drop merchants who offer medicinal marijuana, because they are subject to higher percentages of fraudulent activity.

We know the benefits that medicinal marijuana can offer to customers, as well as the lucrative benefits it can offer to merchants. We pride ourselves at providing our merchants industry-standard processing rates, as well as top of the line security, software, and terminals. We keep your information, as well as your customers’ information secure, which is a major concern these days. Whether you are about to add legalized medicinal marijuana to your inventory, or if you are just curious,

We can set up your medical marijuana payment processing in as little as 48 hours!

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Tag Archives: medical marijuana payment processing

Medical Marijuana Merchants Shackled to Cash Despite Security Risks

Federal Taxes Crippling Marijuana Businesses

Florida Bay Area Pushing Hard for the Legalization of Amendment 2

Recreational Marijuana Sells Grow Massively

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