How Mexico’s Pot Ruling Affects Every Marijuana Merchant

Medical Marijuana Payment ProcessingMexico is taking control when it comes to marijuana – at least somewhat. Thanks to a recent Supreme Court ruling, four people in the Mexican Society for Responsible and Tolerant Personal Use can now grow and use their own marijuana. While four people in a country with 122 million people may not seem like a big deal, it does set precedent in a country known for its marijuana issues. The Supreme Court ruled in this case that it was unconstitutional to prohibit people from growing and using their own marijuana, so more are likely to become green thumbs.

Even though it is still illegal to sell the drug in Mexico, this new ruling could possibly ease the government’s mind. It is well documented that the Mexican government is corrupt, and if marijuana is to be legally sold in the future, there is a good chance that the government would somehow profit from it. However, some could argue the same for the United States. When Denver legalized recreational marijuana, its local tax intake was enormous – over $35 million in 2014 – other states noticed the benefit and more and more are voting for its legalization. While still federally illegal, states are taking hold of the benefits that legalized marijuana sales are providing. Denver earmarked millions for its public school system, and the target was hit quicker than the state initially thought.

Marijuana businesses are big moneymakers, both for the state and the merchant. While they are a good business to get into, the major issues for prospective merchants is the banking industry’s ties to the Feds. Because of this, it can be difficult to get marijuana business funding, short of a rich uncle or a lucky lotto ticket. However, it can be possible with a processor dedicated to the legalized marijuana industry, like marijuana-merchant-account.com. Yes, the industry is tough and risky. But if this is your dream – and it is legal in your area – medicinal or recreational marijuana sales can be a very rewarding path. Be it a large store or a small mobile operation, every business needs funding at some time during its existence. Be sure to contact marijuana-merchant-account.com when it is your time.

Contact MMA for Marijuana Payment Processing today!

start

Legalized Marijuana May Be Headed to Mexico Soon

Close Up Of Man Rolling Marijuana Joint At Home

Close Up Of Man Rolling Marijuana Joint At Home

In early November, the Mexican Supreme Court opened the doors for legalized marijuana sales. While we in the US hear a lot about the dangers of the drug coming from Mexico, the prospect of its legalization may soon change the landscape for both countries. While the country has long had issues with government corruption, many are wondering if this new legalization will be fair to its merchants, along with its consumers.

If Mexico legalizes marijuana, it will not be the first Latin American country to do so. Uruguay has legalized marijuana, and as of 2015, Chile has legalized medical marijuana. Bolivia has went one-step further in the eyes of some, allowing the use of coca, which is the leaf used to create cocaine. North America is also embarking (albeit slowly) with legalized medical and recreational marijuana. There are currently 23 states allowing legalized medical marijuana and recreational marijuana is legalized in 4 states and Washington D.C. With more states (and potentially countries) joining in on the legalized marijuana industry, merchants need to know where to find a processing solution.

Merchants know that finding a payment processor for any type of business is tough. It is even tougher for the marijuana industry because of the industry’s “high risk” status, which is not helped by the fact that the Feds consider it an illegal substance. In this new industry, many choose to forgo a marijuana payment processing account and instead operate as “Cash Only” businesses. This is risky, because it increased your chances of robbery, but it also limits your customer base. The majority of customers today pay with either credit or debit cards, so a “Cash Only” business will deter a chunk of potential business.

To ensure that your business can accept credit and debit cards – as well as stays safe from “high risk” processing issues – you need to look for a marijuana payment processor, like marijuana-merchant-account.com. Whether you have a mobile dispensary or a brick and mortar store, there are payment-processing options available. It doesn’t matter if you are operating in a state that is new to the legalized marijuana industry, or are in a state that has long-held legalization status, you need to make sure that your business is secure – both with product and payment solutions.

Contact MMA for Marijuana Payment Solutions today!

start

The Police Have Spoken: Pot is the Least of Their Drug Worries

Cannabis leaf scattered on the dollars. Seamless imageWhile some in the media – and well-paid lobbyist – want to convince you that pot is evil, our police have a different take on the drug. The DEA released its annual survey of law enforcement officers from around the USA, and found that marijuana is the least of their drug worries. Literally, the least, as it came in last with only 6% of the surveyors saying that it was. While marijuana has never been at the top of the list, it was in the middle in the early to mid-2000s. While consumers have a relaxed view on pot, it’s interesting to see that it isn’t the biggest worry for police, and this could have an overwhelming effect on the government and its stance on the drug.

It should not be a surprise that heroin was named the most worrisome drug, with 38% of the vote, followed by meth with 33%. With its measly 6% of the vote, marijuana either is typically in the news for its legalization in states, or attempts to keep it illegal. Ohio just struck down a vote to legalize medicinal and recreational marijuana, though most states who have offered the vote to its citizens have faced a different outcome. The tax revenue the drug brings in (it is currently taxed at 10% in Denver, Colorado) helps tremendously, as does marijuana tourism. Even so, it is still a federally-illegal drug. This complicates things for those who wish to travel outside a certain area with the drug, and those who wish to fly home with it are liable to be arrested. But this change in law enforcement’s eyes could lead to a change in the Fed’s way of looking at pot.

Coincidence or not, Senator and Democratic Presidential Candidate Bernie Sanders from Vermont introduced legislation to decriminalize pot federally. This, plus the DEA’s survey findings, could lead to a change. However, the recent turn-down of legalized pot in Ohio may prove fatal, as elected officials are careful not to bite the hand that feeds when it comes to voting for things that their constituents are against. Regardless, legalized marijuana is expanding in various states every few months. In October, it was Oregon. In January, it will be Alaska. This leads to new and exciting business ventures. Marijuana merchants know that this is a very lucrative – but troublesome – industry. The main trouble comes from the banks that process payments, as they are controlled by the Feds. Merchants need to look for an ACH check processing source, like marijuana-merchant-account.com, that is experienced with legalized marijuana sales, to help keep their new business account operating smoothly.

Contact MMA for Marijuana Payment Solutions today!

start

MMJ Businesses Seek Payment Solutions Elsewhere after KC Fed’s Denial

Cannabis leaf scattered on the dollars. Seamless imageThe marijuana industry continues to experience one setback after another. This summer has been no exception. At the beginning of August, it was reported that the Federal Reserve Bank of Kansas City was caught in the middle of a heated debate concerning the legalization of marijuana. It became a target of a lawsuit filed by a credit union that is seeking to serve the marijuana industry.

The Fourth Corner Credit Union is a state-charted credit union founded in Colorado in 2014. The lawsuit was filed in federal court by the credit union after the Kansas City Fed denied the credit union a nine-digit routing transit number that would allow it to create its master account. The Federal Reserve’s argument is that, in denying the credit union’s application, there is no way to properly identify the risk posed by the financial institution or how to manage that risk.

The CEO of Fourth Corner, Diedra O’Gorman, expressed that the Kansas City Fed is unreasonably restraining trade and commerce. Her argument is that, since the credit union received a state charter, federal law requires that access to Federal Reserve payment systems must be granted.

In addition to the initial lawsuit, the credit union also filed a separate suit against the National Credit Union Administration’s Office of Consumer Protection. Ultimately, the office denied the credit union access to the federal insurance program that protects depositors. Another road block, the credit union’s charter was approved on the condition that it gets federal insurance.

Federal banking regulators have taken a hard-line stance against providing banking to the marijuana industry due to the federal prohibition of the drug. As far as federal law goes, marijuana is still classified as a Schedule I substance along with heroin, LSD and peyote.

As a result, state-licensed marijuana businesses are forced to operate in a cash-only manner. This makes tax collection in states where marijuana is legal difficult, and obviously creates serious security problems for the businesses themselves. With little to no help from traditional financial sources, marijuana businesses are turning to the marijuana payment solutions many high risk providers offer.

With little to no change on the horizon at the federal level and debates raging at the state level, marijuana payment solutions of this sort seem to be the best and safest option. Businesses are able to secure their payment processing needs while steering clear of cash only operations. In the meantime, many are waiting to see the outcome of the Kansas City Fed lawsuit and its impact on the marijuana industry’s future.

For Marijuana payment Solutions contact us today!

start

Medical Marijuana Bill is Slowed Down in the U.S. Senate

Washington DC MarijuanaMany are disappointed in the amount of time it is taking to build support in the Senate for a medical marijuana bill. At the moment, it is not getting the backing it needs to advance before the August recess. While the bill has the support of influential Democratic senators, the bill needs more support from Republicans.

Two of these influential Democrats include senators Charles E. Schumer of New York and Barbara A. Mikulski of Maryland. The bill currently has two Republicans co-sponsors: Sens. Rand Paul of Kentucky and Dean Heller of Nevada. This bill would allow states to set their own medical marijuana policies by rescheduling marijuana.

Finding a third Republic senator has been extremely difficult. It would seem that any consideration in the Senate Judiciary Committee will be deferred until at least September. According to Sen. Rand Paul, while he admits that the process has been slow, he says that “we’re trying”.

So far, the bill is supported by sixteen senators. Cory Booker, D-N.J. and Kirsten Gillibrand, D-N.Y. are two of the original co-sponsors. More of the co-sponsors include: Barbara Boxer, D-Calif; Michael Bennet, D-Colo; Ron Wyden, D-Ore; Jeff Merkley, D-Ore; Tammy Baldwin, D-Wis; Brian Schatz, D-Hawaii; Tom Udall, D-N.M.; Martin Heinrich, D-N.M.; Angus King, I-Maine and Mazie K. Hirono, D-Hawaii.

While things have been slow in the Senate, progress has been moving a little faster elsewhere. Many senators have applauded the recent decisions that have been made by the Obama administration, which have been to deregulate medical marijuana research; thus, calling on more research.

In addition, Elizabeth Warren, D-Mass, is co-sponsoring a different bill that is sponsored by Jeff Merkley, D-Ore. This bill would allow legitimate marijuana businesses to use banks. Something marijuana businesses would rejoice over in light of how difficult it has been for these businesses to secure the funding and payment processing they need. At the moment, this bill is also stuck in committee.

Many feel that the fact that thousands of legal businesses are forced to operate on a cash-only basis is outrageous, since they do not have the support of traditional financial institutions. Because things are still moving so slowly, many businesses have turned to alternative sources of processing. Marijuana payment processing from providers like Marijuana Merchant Account (MMA), for example, has become the solution for many business’ processing needs.

Contact us for all your Marijuana Processing needs

start