Canada’s Quest to Legalize Pot

canadaCanada has a country-wide medical marijuana legalization task force, and while it may be successful, many wonder what is next. The expectation is that legalized recreational marijuana may happen as soon as 2017 – but will this make a big difference? Opinions are mixed, but many in Canada are wanting legalized recreational marijuana.

The Canadian Institute hosted a few weeks ago a forum on the legalization of recreational pot. It helped curb the minds of some – but not all. So, what is a country to do is something as big as legalized pot is turning people off? Well, nothing. We all have issues with our own perspective governments, but yet we do not flee the country. But like most every other country, Canada has its liberal areas and its conservative areas. While Vancouver is fairly permissive with pretty visible marijuana store front dispensaries, other areas of the country are more conservative. For example, some attendees noted that conservative communities like Saskatchewan are not at permissive as Vancouver and just this past year during May in Toronto police launched Project Claudia that raided many dispensaries and seized 269 kilos of dried cannabis and arrested 90 people.

If it is legalized country-wide, then of course police and local governments will have to cooperate. Will the want to? Maybe not – but if it is the law, then people shouldn’t worry.

This can also add to the workforce in Canada. Marijuana dispensaries can grow – and it not only produces employees but also a larger tax for the country. Many believe that legalized recreational pot will be taxed like cigarettes and alcohol, which can bring in a nice chunk of change for the territories, cities, and country. The employee paychecks help fuel funds back into the local economies.

The big problem could be for those who want to open a dispensary, thanks to a small amount of merchant account providers who work with these companies. All merchants need to make sure that their merchant account provider is out for their company’s success – and not just for their own well-being.

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Marijuana Cigarette Startups – It Is Now a Reality!

medicinal marijuana merchant account servicesPot shops are still taboo in many places in the ‘States, so just think about the reception of marijuana cigarette companies. Yeah… for some it’s not good. For others, it’s great! Waling in, buying the pre-rolled marijuana cigarettes that are all ready to smoke is a dream for some – and it’s now a reality, thanks to MCIG Rollies. Can you do the same thing? Sure. As long as you have the right support team in place.

I don’t mean a good set of friends or your mama. I mean the right business support team: Staff, harvesters (if you don’t harvest yourself), and a startup marijuana business funding source. The latter may sound like a bank loan, but a bank loan it is not. In fact, the bank is the worst place you can go to ask for business funding for a legalized marijuana business. Since marijuana is still a federally illegal drug, and the banks are overseen by the Feds, your answer for a loan request is going to be a big, fat “No”.

Instead, look for a marijuana merchant funding provider, such as MMA. With merchant funding, you can get the funds that you need without the hassle of providing collateral, providing a lot of paperwork – and perhaps worst of all: the high bank loan interest fees. We hate that, right? Well, without this, you are left with the funds that you need, and an easy way to pay the funds back. With business funding, you pay back a small amount at a time, and only when you process a credit card payment. It’s as simple as that! If you go a day or two without a credit card payment, you do not pay. If you have a day where you process 30 credit card payments, you pay a small amount each time. You don’t lose money, and you pay back the funds in a timely manner.

Startup marijuana businesses come in many forms – and the hottest guy on the market is the pre-rolled marijuana cigarette merchant. This is totally doable – if you get the right funding. Be sure to get your funding needs from a marijuana business funding provider, and avoid other costly options.

Women Take Control of Marijuana Legalization and Dispensary Check Processing

Marijuana Merchant AccountIn the many businesses that women lead in, marijuana isn’t usually what you think of. Due to 13 states legalization of recreational and/or medical marijuana, women have taken the reigns of this up and coming legal business. In 2015 the industry brought in around $5.4 billion, and many of those profiting were women. Some are savvy, long-driven business women, and others were simply mothers who wanted to help the public gain access to much-needed (and wanted) medical marijuana. Whatever the reason – and whomever the merchant – these women are taking the United States by storm, but there is one thing that can hold them back.

That “one thing” isn’t their sex, or even legislation which still regards marijuana as a federally illegal substance. The issue at hand is the perceived lack of dispensary check processing options. The industry is held to a “high risk” standard, which severely limits the merchant’s ability to find check processing. The “high risk” label is placed upon industries and merchants whom the financial and processing industry think will have a harder time staying in business. This not only includes legalized marijuana sales, but also car dealerships, e-cig shops, and adult toy shops. The main problem is the risk of chargebacks with these companies. While a chargeback and hit any company, those categorized as “high risk” typically have an increased occurrence.

While some chargebacks cannot be controlled, there are things that you can do, especially if you have a “high risk” business. First off, you need to search for the best check processor for your business. Sometimes the search is easy, but for some merchants the search can take a long time. For instance, a legalized marijuana business can have a harder time finding a check processor for their business, due to the business’s illegality in the Fed’s eyes. Be careful when looking for “all in one” high risk check processors, because while they may claim to cater to all high risk merchants, they may not be experienced enough to deal with the issues that arise within the legalized marijuana industry. Instead, look for a processor who specialized in legalized marijuana businesses, such as MMA.

Contact MMA for Dispensary Check Processing Solutions

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2016 Will Be Medical Marijuana’s Biggest Year With Marijuana Payment Processing

Indoor Marijuana Grow Room with Plants in Soil Under LightsWhile legalization of marijuana in many forms – and in many states – garnered over $5 billion dollars in 2015, the sums are expected to grow for 2016. More unique products are being created, and the stigma that once surrounded reefer is slowly fading. These changes are helping the industry to boom, even though it is still a federal offense to sell, grow, or possess it. The Feds are hating this legalization, but they must be loving the taxes that the government is gaining from these sales.

With 23 states and D.C. allowing medical marijuana and four states — Colorado, Washington, Oregon, and Alaska — plus D.C. legalizing pot for recreational use, sales are bound to keep creeping up. Combine that with Colorado’s legalization of Cannabis Oil for multiple illnesses, which is bringing a mass of children and their parents to the state for its use. While $5 billion may not sound like a lot for one product to bring in, let us put that into perspective with other products. For example, McDonald’s brings in over $1 billion alone in Big Macs. The iPhone rough in over $1 billion in the US alone last year, as well. Compared to the Big Mac and iPhone, legalized marijuana is hitting the jackpot – especially considering that there is an age restriction and it is sold in less than half of the US states.

New products, such as baked goods and lollipops are helping fuel those who are hesitant to smoke up their greens. While these gourmet products are on the pricier side, they are a growing trend in Colorado. Also, medical marijuana is gaining steam, prompting more merchants to get involved. The problem is the lack of medical marijuana payment processing options available in the USA. This is due to the Fed’s illegal stance on the industry, and the overall chargeback rates of the industry. While tough, it is possible to find a payment processor for legalized marijuana businesses, from medical to recreational. The key is to look for a processor who specializes in the industry, and not just a generic “high risk” scattering of companies. There are unique risks and challenges to the legalized marijuana industry and it is important that your payment processor is familiar with these issues.

Get Medical Marijuana Payment Processing today!

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2015 Legalized Marijuana Records Boom With Marijuana Payment Solutions

MarijuanaColorado’s legalized marijuana sales in 2015 may have hit two major records. While the numbers are not yet certain, the Colorado Marijuana Enforcement Division believes that the legalized products brought in over $900 million in 2015, doubling 2014’s numbers. The other big number belongs to the tax revenue for the state that the marijuana sales brought in 2015, which is upwards of $80 million. These numbers alone should legitimize the industry, but many still are wary of it.

Besides the fact that marijuana – in any form – is still a federally illegal substance, its legalization keeps growing state by state. Currently 22 states allow either legalized medicinal or recreational marijuana growth, sales, and usage. Colorado also allows for the production, sell, and usage of cannabis oil, a medicinal oil that is known to help children with severe autism and seizures. Even though this substance is proven to work, parents who try to take it from Colorado to their home state would face federal penalties if they were caught. This has led many to relocate to Colorado, helping fuel the large economic boom.

Aside from the Feds, some in the public are still questioning the green. While many believe it to be a gateway drug, for many the benefits outweigh the risks. You must remember that many believe the same about cigarettes and alcohol, both of which have been legalized and taxed by the Feds for decades, if not centuries. Merchants should not worry about the fear mongers, for they exist in almost every industry. What they should worry about is their payment options.

Payment options are growing with technology. From the standard options of cash, check, debit and credit cards, to BitCoin, PayPal and ApplePay, there are many types of payments that a merchant can accept. The problem comes when your payment processor will not allow you to accept all of these payment sources. Marijuana payment solutions are available, even for new businesses. A new business can be just as risky as one that is categorized as “high risk”, and a new marijuana business can bring double trouble for many processors. You need to do your research before signing with a processor, but cause not all will allow you to accept your preferred payment methods.

Contact us for Marijuana payment Solutions today!

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Lawmakers and the Public are mixed with Legalized Marijuana

Marijuana Business FundingLuckily for the marijuana industry, the legalization is voted in by each state. 22 state currently have some form of legalization, and like any law, not all citizens are pro-marijuana. Lawmakers and citizens on both sides are teaming up, fighting for tougher regulations or more relaxed regulations. Throughout this process, the industry has been growing, providing state revenues that few other industries can touch. This leads to major problems for new and existing merchants, and the riskiness of this industry is far from changing.

While proponents have many reasons for why they oppose legalized marijuana, they seem to ignore the great things that the tax revenue can do for the communities. In Colorado, schools are being repaired and built by the tax revenue, taking a load off the state’s budget. Every state could use these extra funds, but lawmakers are as divided over the legalization as the public. One of the biggest issues for lawmakers is the fact that marijuana in any form is federally illegal. And since federal law typically trumps local and state law, they fear issues that may arise from their decisions. If Colorado has taught us anything, it is that the state and Feds can disagree, and coexist, and no one gets hurt in the process.

This coexisting could work if merchants can check processors saw the benefits of one another. Some legalized marijuana merchants are becoming “cash only” businesses, which not only cuts your customer base, but also leaves you open to robbery. Some choose PayPal, which is a risky choice because they are notorious for closing accounts without notice. This leaves you without a way to accept payments, and without a way to give refunds if needed. You need to look for an ACH check processing source to help better your chances of succeeding. ACH check processing helps you accept not only checks, but also debit and credit. This keeps your business safe, and it helps you get the funds in your business checking account fast. In addition, ACH check processing is one of the safest ways to process payments, leaving you and your customers secure during the process.

For Marijuana ACH Check Processing contact us today!

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Business vs. Public Health: Marijuana Merchants Have New Issues

OLYMPUS DIGITAL CAMERAWhile the Feds, the state government, and opposing citizens are big issues for marijuana merchants, the California Marijuana Legalization Legislation may have inadvertently delivered a new issue for merchants to deal with: the balance of business versus public health. Apparently their promotions are for new business measure, without any effort to educate the public about marijuana. While this is something that should be corrected, it could lead to even bigger issues when marijuana merchants look for business funding.

A researcher at the UCSF Center for Tobacco Control Research and Education concluded that “the Dept. of Consumer Affairs and dept. of Food and Agriculture showed more attention on collaborating with the marijuana industry and business development and paid less attention to the effects on public health or to controlling the growth of a large marijuana industry similar to the multinational tobacco industry”. Unlike other products, marijuana merchants are not experts on the substances that they are selling, and it is important that the state educate merchants and consumers. This issue could make it harder for local lenders who want to support marijuana businesses. Banks are usually the worst place to look for marijuana business funding, because banks are controlled by the Feds. The Feds consider marijuana in any amount to be illegal, even though twenty-two states have legalized it in some form. For many legal issues federal law trumps state and local law, so banks are hesitant to hand out loans.

Bank loans are always not the best idea for business funding because repayments are not merchant-friendly. With a bank loan, payments are due almost immediately, and even if your business fails, you must keep up payments, or risk forfeiting your collateral. This can quickly damage your business if you miss a payment, as well as your personal credit. Business funding is different. With business funding, the amount given is not a loan but rather an advance on your future sales. Payments are not taken in one large sum every month, but rather in a set percentage from your everyday sales. This helps you stay on top of your payments, and helps you avoid default on a hefty loan.

Contact us for Marijuana Business Funding today!

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