Hawaii Announces First Legitimate Banking Solution for Cannabis Industry

Posted on October 3, 2017 by admin

Cannabis leaf scattered on the dollars. Seamless image Banking partners and regulators have joined together to provide statewide access to financial services for the marijuana industry. On Sept. 13, CanPay, the first legitimate debit payment solution for cannabis and Safe Harbor Private Banking, the leading compliant banking program for marijuana merchants. An unprecedented move, this is the first time banking regulators, regulators and cannabis licensees have worked together.

For a previously unbanked legal medical marijuana market, this is a huge improvement. The 29 states and the District of Columbia have encountered endless obstacles in their efforts to secure payment processing and business funding solutions. Banks accounts are so highly regulated on the federal level that most businesses have been forced to operate in cash-only (obviously unsafe and an impractical situation).

Now, those obstacles no longer exist in Hawaii. Through the newly automated Safe Harbor platform and CanPay, merchants and patients can now enjoy greater convenience, transparencies and security. Hawaii’s Commissioner of Financial Institutions, Iris Ikda, the Executive Director HEALTH Kerry Komatsubara were instrumental in this collaboration.

“The arrival of banking and payment services for the cannabis industry in Hawaii will enable dispensaries to reduce or eliminate cash sales, which will help keep these businesses much more secure, said Komatsubara. “The cash-only precedent in this industry is less than ideal for customers, employees, and the general community, so having alternative options available really does change how we do business for the better.”

Even with this step in the right direction, there is still a long way to go before merchants can easily obtain the specialized services they need. Many merchants in other states that have legalized marijuana are still unable to secure merchant services with financial institutions and other traditional Visa and MasterCard payment processors. With strict federal regulations, banks simply won’t touch cannabis businesses. An increasingly popular solution to this ever-growing problem is a marijuana merchant services with an alternative provider – like Marijuana Merchant Account.

Marijuana Merchant Account Full Service Payment Solutions

With Marijuana Merchant Account, cannabis merchants can quickly secure a merchant account and have it setup in a matter of days. Merchants can easily accept all card types (American Express, Visa, Mastercard and Discover) accept checks over the phone via MMA’s e-check processing services and utilize recurring payments for memberships, discounts clubs and more. The straightforward application process can be completed in a matter of minutes.

If your business is struggling to obtain a merchant account or your account has been suddenly closed, consider what a marijuana merchant account can do for you.

Nevada Pushing to be First State to Allow Recreational Marijuana Lounges

Posted on October 3, 2017 by admin

Smoke If all goes as planned, it would appear that Nevada will be the first state to allow recreational users to consume marijuana in clubs and lounges. The beginning of September, the state Legislative Counsel Bureau confirmed that state law does not prohibit city or county governments from operating a lounge in which patrons may use marijuana. The bureau went on to say that cities and counties are allowed to adopt their own rules governing those businesses; they are also allowed to decide whether those businesses are required to obtain special permits.

At present, public smoking is banned under state law in Nevada’s hotels and casino. Nevada is not alone on this. Washington, Colorado, Alaska and Oregon – the four other states where recreational marijuana use is legal – also do not allow public use of marijuana in lounges or other facilities. Recreational use is restricted to private residences.

There are three other states – California, Massachusetts and Maine – that are finalizing rules in advance of legalized marijuana. Despite legalization advocates efforts, none of these states are currently considering legal pot lounges.

Tom Angell, the founder or Marijuana Majority, a pro-legalization group, says, “Allowing regulated social use areas is a good solution that recognizes cannabis consumers’ rights to congregate just like alcohol drinkers can in bars while also protecting nonconsumers’ rights not to inhale secondhand smoke.”

However, there are many legalization skeptics that are still concerned about what marijuana stores and lounges in their community will lead to. Many are worried that it will increase the risk of crime associated with the industry. While these skeptics do not necessarily want marijuana users to go to jail for using, they are not ready for pot clubs to move into their neighborhood.

“Data show that areas around marijuana stores have higher crime and issues with second-hand smoke and other nuisances. I can’t imagine pot clubs will be a good thing for the state,” says Kevin Sabet, who heads the anti-legalization group Smart Approaches to Marijuana.

There are also concerns that the Trump administration may reverse a long-standing Obama administration agreement; this agreement deemphasized prosecutions of marijuana-related businesses in states that have legalized marijuana. Not knowing which direction the Justice Department will decide to go, many are worried about potential legal issues.

Marijuana businesses already struggle to find the services they need to operate safely. If the Justice Department chooses to shift their stance, it will definitely make day-to-day business operations even more difficult. Most banks refuse to work with marijuana merchant, due to the risks of the industry and heavy federal regulation.

The safest options for these merchants are either operating in cash (obviously extremely unsafe, not to mention impractical) or finding an alternative processor like Marijuana Merchant Account (MMA). Depending on the business type, merchants can secure either a recreational or medical marijuana merchant account to sell marijuana in as little as 24 hours.

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.

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