Recreational Marijuana Continues to Thrive Over the Medical Industry

Posted on December 11, 2017 by admin

Recreational Marijuana It seems like medical marijuana cards are no longer the key to purchasing and enjoying weed in Oregon.

The recreational marijuana industry is taking over rendering the cards less valuable compared to the past when they meant everything. These days they only matter as “discount cards” but are not necessarily a requirement for buying and possessing pot. The advantage with a medical marijuana card is that it saves you the hefty state and local cannabis taxes charged on recreational marijuana. As a result, medical weed dealers are experiencing a drop in their daily sales.

According to Sam Elkington of Track Town Collective, a dispensary in Glenwood, the sales had plummeted to as low as $58 on Monday afternoon— the main reason Elkington is unable to employ other staff at the store. He added that of all potential buyers that walk into his small store, only 3 to 4 come for medical marijuana, the other 15 to 20 are potheads looking for recreational pot which the law still prohibits him from selling.

And as a smart entrepreneur, Elkington is willing to embrace the evolution of the cannabis market in Oregon. That’s why he plans to switch from the medical marijuana business to the currently booming recreational pot industry. This would mean cancelling his status as a medical cannabis dispensary with the Oregon Health Authority and applying with the Oregon Liquor Control Commission as recreational weed seller.

More medical pot dealers to go Recreational

Nowadays, Medical pot cardholders have the freedom to buy marijuana either at a medical store or at a recreational shop. This has worsened the playing field for medical marijuana dealers and rendered them financially indefensible.

It’s no wonder 5 out of the 21 medical pot license holders have given notice to the state on their plan to give up medical marijuana licenses and apply as recreational weed sellers with the OLCC. According to Jonathan Modie, Spokesman at Oregon Health Authority, only four license holders showed signs of staying put as medical marijuana dealers.

Wrapping Up

The recreational cannabis industry has always been a gold mine back from the days when it was underground. And now that it has been decriminalized (in some states) we expect to see significant changes in the market.

California Recreational Use Draws Near, Merchants Still Battle Financial Struggles

Posted on November 22, 2017 by admin

imgres Even in the excitement of legal recreational marijuana sales rolling out in California on January 1^{s t}, a very big problem remains: the lack of financial services. The ability for consumers to consume recreational cannabis in California is expected to bring in billions in tax revenue. Despite this massive revenue and the fact that medical marijuana has been legal for two decades, the industry is still unable to secure the financial services they to operate safely and efficiently.

While business is booming – thanks to laws like Prop 64 – marijuana merchants are struggling behind the scenes. More and more people are showing up to make purchases, no longer afraid. But businesses themselves are finding it harder and harder to operate efficiently. Under federal law, cannabis is still classified as a Schedule I drug (alongside heroin and ecstasy). This status is holding these businesses back.

Even though there are federal compliance guidelines, marijuana’s federal status makes banks very wary. Unwilling to push themselves into a risky situation, they choose to stay away from the industry. Despite the industry’s booming growth.

After receiving rejection letter after rejection letter, merchants are forced to operate in cash. Without a merchant account from a bank, these businesses have no means of writing a check, doing a direct deposit or processing debt and credit card transactions. Paying bills requires only minutes of the typical business owner’s time. For the cannabis merchant, the process is not only long and overwhelming, it isE unsafe. From paying employees and bills to paying taxes, all transactions are done solely in cash.

The Internal Revenue Code Section 280E only complicates things further. This tax code was created with the intention of crippling illegal drug trafficking businesses. Since marijuana is still illegal on the federal level, this tax code affects the marijuana industry’s legal businesses.

420 College CEO, George Boyadjian, says, “It kind of cripples the business a lot. It prevents businesses from growing and reaching their full potential.”

After Prop 64 was passed, California state Treasurer John Chiang formed the Cannabis Banking Working Group. Since then, this group has been working hard on banking recommendations for the regulations scheduled to be released in 2018. The goal of this banking system is to get the most fiscally from the marijuana industry. Even so, the federal-state legality gap remains an issue, and will impact the effectiveness of this system.

“It’s not going to be a perfect pathway unless the federal government allows for this kind of activity and they take cannabis off Schedule I [status],” explains Chiang.

Many marijuana businesses continue to seek cash solutions and safe payment processing services through alternative lenders like Marijuana Merchant Account. Businesses can avoid operating in cash-only, and provide customers with multiple payment options. For merchants trying to safely and quickly pay bills, employees and taxes, this is great news. Rather than waiting for the federal government to reclassify marijuana (who knows when that might be), merchants can secure services now.

California Cities Unprepared for Legal Recreational Cannabis Sales Jan. 1

Posted on November 21, 2017 by admin

Marijuana Business Funding The long-awaited day is right around the corner, but California is not as prepared as it should be for the start of recreational marijuana sales on January 1^st. Both Los Angeles and San Francisco are struggling to put together local rules for cannabis shops and growers. The problem is that a delay in regulations could lead to limited options in many areas. This would be incredibly unfortunate, considering how many consumers are eager to ring in the new year with a legal cannabis purchase.

Thus far, California plans to treat marijuana like alcohol. Individuals 21 and older will be permitted to possess up to an ounce and grow six marijuana plants at home. On Jan. 1, the newly legalized recreational marijuana sales will be merged with the state’s medical marijuana market, which is experiencing stronger regulation. Recently published plans to regulate the two-decades-old medical marijuana market are the first since it was legalized.

This proposed plan details the standards for marijuana merchants that wish to be licensed by the state. The rules range from how late these cannabis shops can stay open to how much they will be allowed to sell each day. The final rules should be in place in time to start issuing licenses by January 1^st – just in time for the rollout of legal recreational marijuana purchases.

While it sounds like things are moving steadily forward, there are some holes in the system. Specifically, how the cannabis will be moved from the field to distribution centers, on to testing labs and finally arriving at the retail shops themselves. The licenses to be issued in January are temporary, and plans have not been released on how the estimated $7 billion marketplace will be governed.

Obviously, a big problem considering the state is expecting to see as much as $1 billion in the first few years. Operators are concerned that this delay in nailing down the details could cause serious conflicts in various rules and laws to pop up down the road.

According to The Cannabist, “The state expects businesses that receive licenses will only work with others that hold them. But that has alarmed operators who wonder what will happen if their supplier, for instance, decides not to join the new legal market.”

Another huge obstacle for marijuana operators is that banks still refuse to work with them. Under federal law, marijuana remains very much illegal. As a result, these merchants have turned to alternative providers like Marijuana Merchant Account for their business funding and payment processing needs. Unlike their experience with a bank, merchants can secure the services they need with MMA in as little as 24 hours with minimal documentation requirements.

Meanwhile, Jan. 1 is fast approaching – ready or not. Cara Martinson of the California State Association of Counties recently admitted, “The bulk of folks probably are not going to be ready Jan. 1.”

Denver-Based Cannabis Company Debuts Airport PSA, Leave Pot at Home

Posted on November 18, 2017 by admin

Marijuana A Denver-based company, Organa Brands, has created the first-ever public services announcement in airport terminals concerning cannabis. One of the largest legal cannabis brands in the country, Organa Brands premiered their ad campaign last month on branded trays at security checkpoints of a major airport in Southern California. The goal of this campaign is to remind passengers about the serious legal repercussions involved in taking cannabis aboard a plane. The PSA reads, “Cannabis is legal, traveling with it is not. Leave in California.”

These branded trays are the ones used for stashing shoes, cell phones, wallets and other personal items just before walking through security. For the next twelve months, the trays will appear at Ontario Airport (just outside Los Angeles, California), and are expected to generate around 15 million impressions.

Co-founder of Organa Brands, Jeremy Heidl, is very optimistic about this campaign. “Anytime we can normalize cannabis, I think it’s a good thing”, he says. “I’m still pinching myself a week into this. It’s just unbelievable to me that the TSA was able to sign off on this campaign.”

The timing of these new “Cannabis is Legal” ads directly relates to marijuana laws in California. After years of use under medical marijuana laws, recreational cannabis will also be legal in California starting January 1, 2018.

Heidl explained to The Points Guy, “We have long known that California is about to become the biggest recreational cannabis market in the world, and as [one of] the largest brands in the space, we feel a real responsibility to educate consumers. There’s obvious confusion surrounding cannabis laws — even the TSA at times has been confused as to these policies.”

It is easy to see why there might be some confusion. In most cases, TSA and airport security officials have done very little to inform the public on what is legal and what is not when it comes to bringing cannabis to the airport. In addition, the TSA is a federal agency; the government is still hostile towards marijuana. The Drug Enforcement Administration still categorizes marijuana as a Schedule I substance – just as dangerous as cocaine – with no accepted medical use. These ads are possible because, while the TSA draws the line at political ads, it does not regulate advertising messages that appear in the strays that go through X-ray machines. The hope is that Organa Brand’s ads will clear up the confusion shared by many states where pot is legal.

President and CEO of SecurityPoint Media, Joseph T. Ambrefe, Jr., says, “I think this is an example of a company with a good educational message to drive dialogue, and also educate travelers whether you’re a California resident or visiting the state.”

Is your business trying to prepare for the California recreational marijuana in the coming year? Consider partnering with an alternative lender like Marijuana Merchant Account. Business owners can quickly secure the business funding and payment processing solutions they need to smoothly and securely operate. Have a strong start to 2018 and seize the many opportunities the new year will bring.

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.

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.

New Study Says Rise in Marijuana Use is Not the Result of Legalization

Posted on September 29, 2017 by admin

unnamed The use of cannabis in the U.S. has been increasing rapidly over the last decade. However, you might be surprised to hear that it is not because of legalization. A recent study in the journal Addiction confirms that the growing number of state laws and pro-pot policies – that allow legal use of both medical and recreational marijuana – are not the reason behind increased usage.

“Marijuana policy liberalization over the past 20 years has certainly been associated with increased marijuana use; however, policy changes appear to have occurred in response to changing attitudes within states and to have effects on attitudes and behaviors more generally in the U.S,” the report says.

To arrive at this information, researchers from the Public Health Institute Alcohol Research Group analyzed data from National Alcohol Surveys. Following this research, the changes in marijuana use was compared with changes in state laws. Even though 29 states and Washington D.C. have either medical or recreational laws in place, the increases in use were “primarily explained by period effects.” These “period effects” refer to societal factors that affect populations across age and generational groups.

“It only makes sense,” says The New York Times. “Policy changes occur with changing tides, and the societal tide change in how we view marijuana as a culture has become a mainstream phenomenon.”

The findings of this study are being used to support the argument for continued legalization. Many hope that this assessment of the national temperature on the subject will encourage more acceptance and boost the marijuana industry. Operating within this industry is still incredibly challenging for those brave enough to battle the endless obstacles. For example, merchants are still unable to secure the payment processing they need to operate safely (many are forced to operate in cash).

Full Service Payment Solutions for the Cannabis Industry

With Marijuana Merchant Account, cannabis merchants can quickly secure a merchant account and have it setup in a matter of days. MMA boasts a large network of lenders and equity groups, and offers marijuana businesses short term cash advances and capital for expansion. Easily accept all card types (American Express, Visa, Mastercard and Discover) and utilize recurring payments for memberships, discounts clubs and more. You can also accept checks over the phone via MMA’s e-check processing services. 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.

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.

Number of Banks Serving Marijuana Businesses Increasing, or Is It?

Posted on July 13, 2017 by admin

Many in the marijuana industry were optimistic when they read the recent report from the U.S. Department of The Treasury’s Financial Crimes Enforcement Network (FinCEN). This report revealed a sizeable increase in the number of banks and credit unions providing financial services to legal marijuana business. In FinCEN’s latest Marijuana Banking Update, 368 depository institutions were “actively banking marijuana businesses in the United States” at the end of the first period (March 31).

The marijuana industry is heavily cash-oriented, which isn’t easy for the 29 states that have legalized medicinal or recreational use of cannabis (or both). So, the news that the number of depository institutions working with legal marijuana business was up from 333 at the end of 2016 to 368 was very welcome. The November 2016 elections also added eight states to the list of those that have legalized recreational use: California, Nevada, Massachusetts and Maine.

Even with these changes, experts caution that the numbers are not sharing the whole story. FinCEN requires financial institutions to file three types of so-called suspicious activity reports (SARs) if they have cannabis-industry clients. The three different types of reports consist of:

Marijuana-limited is for routine tracking of these businesses, and shows the bank believes the business is complying with state law.
Marijuana priority SAR indicates that the financial institutions believes the business might be in violation of state law.
Marijuana termination reports that the institution has ended its relationship with the cannabis business for due-diligence, legal or business reasons.

According to FinCEN, since January 2014, financial institutions have cumulatively filed 20,288 marijuana-limited SARs. There have been 7,326 terminations SARs, and 2,007 priority SARs. Despite the increase in marijuana-limited SARs, FinCEN says the report shouldn’t be taken as hard evidence that financial institutions are warming up to the cannabis industry.

Jim Petkovits, vice president of education and training at WesPay, a San Francisco-based regional automated clearing house association, says some banks will quietly serve only one or two cannabis clients. Others find out that they’ve unwittingly served a marijuana business and quickly terminate the relationship by generating a SAR.

Petkovits did go on to say that “there definitely seems to be more interest, discussion around it.”

However, interest doesn’t necessarily mean acceptance. Most financial institutions are waiting for the go-ahead from Congress. (Marijuana remains illegal under federal law.) Many doubt that acceptance will come anytime soon, considering Attorney General Jeff Sessions statement in April that he intends to harden federal drug-enforcement policy.

This has left many cannabis businesses with little to no merchant account options, making it impossible to secure payment processing solutions. This has led many alternative processors – like Marijuana Merchant Account– to reach out and offer marijuana business funding options and marijuana merchant accounts. For now, it appears cannabis business’ best option is to work with a high-risk specialist to secure safe, flexible business funding options.

What Does Pot Legalization Do To Drug Cartels?

Posted on April 18, 2017 by admin

unnamed Up until a few years ago the only way to get recreational marijuana was illegally. This benefitted mostly the drug cartels – and honestly, who wants to do that? With the rise of states offering legalized recreational marijuana, the cartels are likely to take a hit – but how much? And will this help eradicate marijuana cartels?

Probably not, since some states will never legalize recreational marijuana. But Arizona has strong beliefs in how to tame the cartels. Law enforcement leaders say the change will strengthen cartels, allowing them to infiltrate the legal pot market and driving them to sell more hard drugs. Advocates of legalization say it will undercut the cartels by eliminating a key segment of their business. Also, they could easily move into another drug, such as cocaine or heroin – the latter of which is gaining popularity in the states thanks to its pricing. Customs officers confiscated more than 4,100 pounds of meth and 863 pounds of heroin at Tucson sector border crossings last fiscal year. That’s a 46 percent increase in meth and a 77 percent increase in heroin over the last two years. The amount of meth seized so far this fiscal year has already surpassed last year’s.

Now that the cartels have competition with product that is regulate and more pure, they may panic. Even so, the border patrol seized more than 800,000 pounds of pot last year coming into the United States. If recreational marijuana is legalized in California, these numbers could drop – but they could find other ways to sell their product to states that do not have legalized pot. The Southeastern US is less likely to legalize pot than northern or western states, so this is a possibility.

What do we do? Well, there’s nothing much that we can do – except vote. And urge our lawmakers to help pass laws to legalize marijuana in some form. For some states it will be tougher, thanks to their I&R laws, but it isn’t impossible. This helps eradicate some of the cartels, and it helps keep everyone safe, thanks to the regulation of legalized marijuana.

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