What We Know About Marijuana Legalization

Posted on January 6, 2017 by admin

legalmarijuananowlogo As Arizona, California, Maine, Massachusetts, and Nevada prepare to vote on marijuana legalization next month, all eyes are on the initial outcomes of those states that have already legalized marijuana. In 2012, Colorado and Washington became the first two U.S. states – and the first two jurisdictions in the world – to approve ending marijuana prohibition and legally regulating marijuana production, distribution and sales. In the 2014 election, Alaska and Oregon followed suit, while Washington D.C. passed a more limited measure that legalized possession and home cultivation of marijuana. However, any type of legalization is great for those who need it – and with more and more studies showing the positive effects of medical marijuana, more and more people can use it and reap the benefits.

Other states, such as Georgia, have a limited CBD oil usage for those with severe seizure ailments. But with more and more states legalizing medical or recreational marijuana in some form or another, and more and more people in favor of some form of legalization, everyone can reap the benefits. Taxes are higher on legalized marijuana than other products, and the tax money is used to renovate infrastructure, schools, and even teach those about the negative effects of illicit drugs and alcohol.

This benefits everyone, but some are still hesitant to embrace the rewards that legalized marijuana and medical marijuana can bring to the States. The Feds, for one, still have marijuana in any form categorized as an illegal drug, so that makes it nearly impossible to have any federal help business-wise. It also makes it nearly impossible to get a loan from a bank to help a growing or budding dispensary out, since the Feds regulate the banks.

But, the worst thing that a merchant can do is to have a “cash only” business. There are options to help you accept plastic card payments: A marijuana merchant account. They do exist, but you still need to make sure that the one that you choose truly understands the business, and isn’t just out for their own benefit.

Colorado Revenue Report Shows Growth in Recreational Marijuana Market

Posted on March 24, 2015 by admin

The Colorado Department of Revenue released its annual report on the nation’s first market for recreational marijuana products. Alongside Washington, Colorado was the first state in the US to legalize recreational marijuana. Of course, the discrepancy between state and Federal laws still create difficulties for merchants, but the market is growing at an impressive rate. According to numbers from the report, almost 150,000 pounds of cannabis flowers were sold last year. An indication of a healthy and growing market.

During the 2014 year, the number of licensed businesses for recreational marijuana doubled from 400 to over 800. Of course, the term ‘businesses’ in this context is comprehensive of retailers, cultivators, testing laboratories, and infused product manufacturers. The healthy market is growing competition at a healthy rate as merchants continue to capitalize on this in-demand market. The number of medical marijuana dispensaries also increased, though at a much smaller rate.

However, despite the increase of businesses receiving licenses, the medical marijuana market still vastly out reaches that of the recreational market in the state of Colorado. Of the nearly 150,000 pounds, approximately 100,000 still belonged to the medical marijuana market constituting two thirds of the entire supply within the state. The disparity comes from the established nature of the medical market compared to the state’s brand new recreational industry, pioneering not only the state but the nation as a whole. The disparity isn’t helped by the disparity between state and Federal laws either.

Due to marijuana still being banned by the Federal government, the industry remains high risk for merchants. Finding a bank to accept and handle a merchant’s marijuana payment processing remains next-to-impossible. This forces many merchants to find payment processing to avoid being a cash-only business in alternative places that do not balk at the legal risks associated with the industry. As long as the difference exists between state and Federal law, merchants will always be under threat of overzealous Federal prosecution, and therefore banks and traditional financial institutions will back away from providing payment processing for credit and debit transactions.

Colorado is more than an experiment for the functionality of recreational marijuana markets. The growth and success of the Colorado markets indicate that the market may be here to stay. As merchants find more alternatives to the complications and difficulties of doing business, businesses will continue to grow as the recreational marijuana industry continues to develop past its infant stages.

For 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!

420 Day in Colorado!

Posted on April 30, 2014 by admin

Well it looks as though Colorado passed yet another vitally important cannabis test last weekend, and yes it just happened to be on target with Colorado’s new recreational marijuana industry.

With Colorado being the first state to legalize recreational marijuana it appears that their annual holiday held on 4/20 went well. Although there were long lines for the Cannabis Cup (which led to a few grumbles) did not led to any real bad behavior among the recreational cannabis consumers that were gathered for the rally in downtown and at other events that were held to celebrate the holiday.

The weekend of 4/20 was everything that the cannabis business had waited for and the cannabis consumers were very relaxed.

The holiday event of course turned out to be very profitable and the Cannabis commerce flowed free. Many recreational marijuana businesses had record sales; which means there was a surge in tax revenue for the state of Colorado.

This was great Public Relations for Colorado’s recreational cannabis industry since cannabis received bad PR in the beginning stages when there were several incidents involving edibles.

There are some individuals who are still against having tens of thousands of stoners gathering at one time, and smoking marijuana freely in public places although authorities did have to issue several thousand citations at the holiday event for public consumption, and some individuals were even taken to detox. Many say this is no different than alcohol-related events. There have always been those who don’t know their limit.

The message the folks of Colorado wants the rest of the world to see is: legalizing marijuana will not create a world of chaos, this is not any different than allowing individuals to drink in a bar/restaurant, or any alcohol-related event and that recreational cannabis users will not gather in large groups to consume marijuana.

Organizers of the rally downtown had a more professional event which brought a more professional side to the event. There were long lines for the vendor booths that sold Leafly and the manufacture CannaEnergy and some of the businesses handed out samples of their products. The atmosphere was very laid back.

Since the recreational cannabis industry is under the microscope due to the side effect of consuming marijuana through candy, cookies, and other means it has caused a black mark on the marijuana businesses as well as the legalization.

Horrible incidents that involve edibles need to be looked at as isolated incidents and they are not directly related to proper cannabis use. There may be possible misuse of the product (this is no different than taking too much of a prescription drug or alcohol poisoning). So the same measures you would take with medicine and alcohol you should also apply with the use of recreational cannabis.

Colorado and other states will need to address some of the issues that are tied to the edibles, and the responsible use of the cannabis users.

But 4/20 in Colorado will not only be marked as a holiday in Colorado. It will also go down on the history books as the first State to allow individuals to openly smoke, purchase, eat, and drink Cannabis in public.

Colorado’s Recreational Marijuana Sales Bigger Than They Seem

Posted on April 15, 2014 by admin

According to recent tax data released by Colorado, recreational marijuana sales increased by five percent in February. Sales reached $15.1 million. While this figure is good it is lower than expected. Though February was a shorter month than January which skews the actual perception of how much sales have grown.

Sales were approximately $539,285 each day in the month of February. This, when compared with $464,516 in January, shows that there was actually an increase of around 15%. This would have created a total of $17 million in February vs. $14.4 million in January, if February wasn’t a shorter month. Making sales a few million higher.

As recreational sales rise steadily and are expected to continue to climb as the year progresses, medical marijuana hasn’t suffered as some previously feared. Sales for medical marijuana rose 12% in February reaching $35.2 million. These figures prove that the recreational market is not impacting the medical market revenues. With medical and recreational markets both growing steadily and not adversely affecting each other the industry stands to increase as the year goes on.

The state collects taxes and fees on both recreational and medical marijuana. In February the state collected $3.2 million in taxes and fees related to the marijuana industry. A percentage of that, $438,253 is connected to a 2.9% sales tax on recreational marijuana and $1.43 million is connected to a 10% sales tax on any retail cannabis transactions including ancillary products related to marijuana.

Also as the dispensaries see increases in their sales it will be important to streamline a marijuana payment processing method to better capture sales and assist customers. Currently cash is the only form of payment accepted in dispensaries though that may change soon with the advent of new applications and technology.

Despite the good figures state lawmakers are holding off on making plans for the funds. As the forecast of the tax revenues could be different than what the various offices initially predicted. Therefore until more information can create a more accurate forecast the finalizing of spending plans for the tax revenues are on hold. Especially as the revenue estimates, created by the governor’s office, that were presented to voters who approved the marijuana tax plan in Colorado haven’t yet been consistent with the official tax report.

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Marijuana Enforcement Division Grows with the Colorado Marijuana Industry

Posted on April 9, 2014 by admin

With Colorado’s recreational marijuana industry growing at such a rapid rate the regulatory bureau has had to step in and oversee operations. The growth is primarily due to the expected expansion of recreational as well as medical industries. Even though marijuana has been legalized in Colorado the state is still trying to regulate the drug and tie up some of the loose ends.

State officials have received notices of intent from 255 businesses which have plans to apply for a license after July, at which time the state will open up its recreational industry to businesses that were not originally medical marijuana businesses. The state agency overseeing Colorado’s experiment of marijuana legalization is adding enforcement agents, data analysis, along with undercover operatives. Officials believe these steps will make businesses more accountable.

Just a year ago, there was a state audit that criticized what was then the Medical Marijuana Enforcement Division for not being able to track who was growing or selling marijuana. Budgeting and management was bad and there was no definition of marijuana’s role.

Now that there is more solid funding from application and licensing fees the Medical Enforcement Division has a stronger financial footing. This is the agencies third director in the last four years but finally the medical marijuana license applications have been caught up to the applications submitted in mid-2010.

Some industries are still questioning if the agency is capable of handling the challenges, more new businesses, and enforcing the product testing. In 2012 the division had to close three field offices and lay off the staff after a moratorium on new business applications force it to stretch operating expenses budgeted for one year over two years.

The Marijuana Division currently has 30 employees and they would like to see that number increased to 55 hopefully by the end of the fiscal year, in June. With increased manpower they are hoping to open some other offices in Colorado Springs, Northern Colorado and the Grand Junction.

Part of the expansion has made way for the secret shopper program. This will make sure businesses are not selling to minors. This plan is called the “underage compliance program” it is similar to the programs that are used in the liquor industry. There will be consumers sent out to retail shops to try and purchase marijuana. Then the operatives will go to the medical dispensaries and try to purchase cannabis without an official MMJ card. Although Colorado has a smoke your marijuana and feel good attitude these are some questions that linger yet unsaid aloud.

It would appear Colorado has the resources to hire and fund a Marijuana Division for the recreational marijuana industry but what about other states?
Will people who use marijuana be able to travel from state to state or country to country with their marijuana?
Will there be a breathalyzer for someone stoned behind the wheel of a moving vehicle?
Will medical marijuana smokers be able to smoke during work hours?
What about the individuals who drink, smoke marijuana and drive?

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