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 Legalization Faces New Concerns Regarding Smuggling

Posted on December 19, 2014 by admin

With the number of states permitting recreational and medical use of marijuana growing, there are some concerns both at home and across the border that are making their way into the spotlight. Because of the legalization that has occurred on the state level, Americans are buying marijuana domestically. As a result, it has seriously undercut the growers and cartels of Mexico.

Many people believe that crops in Mexico are grown by Mexican traffickers with their fancy boots and fast and furious lifestyle. However, the truth is that the majority of people growing marijuana are ordinary people with families trying to make a living. For example, in Culiacan, Sinaloa, Mexico’s marijuana heartland, everyone grows marijuana – despite the fact that it is illegal.

Recently, the economics of Mexican marijuana have seen a dramatic change. According to an article by John Burnett of NPR, 2.2 pounds of marijuana was worth $60 to $90 a few years ago. However, it is now only bringing in $30 to $40.

In a study two years ago called “If Our Neighbors Legalize” by the Mexican Institute of Competitiveness, it was actually predicted that profits would slump for drug cartels as the United States began legalizing marijuana. It would seem that American pot smokers prefer domestically grown marijuana, which means sales are really dropping off for Mexican growers.

Mexican marijuana is considered to be poor quality and has less THC – the ingredient that makes a person high – than the American grown marijuana. As a results, the substance is being moved out of Colorado and into Mexico to be sold to high-paying customers.

Individuals of the DEA have expressed concern over this new and growing issue of smuggling. The question has also arisen as to whether this new American market will hurt the violent Mexican drug mafias.

The medical marijuana industry is very young in the United States. As it learns from mistakes and successes, it will grows stronger. In the meantime, domestic dispensaries will need protection and safe payment solutions. For those who are searching for safe and efficient options, a marijuana dispensary merchant account may be just the thing for you.

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Marijuana Use Positively Affects Brain Injury Patients

Posted on October 24, 2014 by admin

Many are coming to the conclusion that increased survival rates of traumatic brain injury cases are associated with the use of cannabis. During the study, conducted by UCLA Medical Center investigators of 446 patients suffering from traumatic brain injuries, the individuals underwent a urine test to determine whether or not there was the presence of THC in their systems.

After a three year review of these patients, the following information was determined. According to the Medicalxpress, “Of those patients who tested positive for the presence of marijuana, 97.6 percent survived surgery. By contrast, patients who tested negative for the presence of pot prior to surgery possessed only an 88.5 percent survival rate.”

With the current findings on the positive impact the presence of THC can have on brain trauma patients, it is likely that further therapeutic interventions will be established in the future. The likelihood increases when you consider the positive direction the marijuana industry is moving in.

Colorado has paved the way for other states to follow. For example, a poll released on October 17, 2014 by the University of Delaware revealed that a strong majority is in favor of the legalization and regulation of adult use of marijuana. In addition, Alaska and Oregon are waiting for November 4 to see how voters feel about marijuana legalization.

The study concerning cannabis use for traumatic brain injuries will surely be used as a point in favor of further legalization, as those in the industry continue to seek support for the benefits medical marijuana can offer.

In the meantime, there is still a need for the dispensaries involved in the industry. Marijuana dispensary merchant accounts provide the means to fulfill payment processing needs safely and efficiently. Marijuana-merchant-accounts.com can offer such solutions for your medical marijuana store front dispensary.

Does your Dispensary need credit card processing? We can set up your account today. Contact us today!

Medical Marijuana Industry Poised To Exceed $8 Billion by 2019

Posted on June 27, 2014 by admin

A new report published by IBISWorld Research claims that the medical marijuana industry could reach a revenue of $8.4 billion by 2019. In 2014 the revenue is projected to grow by 63.1%. Annually, the growth rate would be nearly 19%.

There are some challenges that the industry could face including state and federal regulations. Due to many state laws medical marijuana is mainly a small business operation though the industry is set to pay more than $750 million in wages making it very valuable.

As such there are many companies which will expand their operations, unveil new products and new partnerships to continue to grow in the cannabis market.

DirectView Holdings, Inc. (OTCQB: DIRV) a leading security and video technology company has created a strategic partnership with CannaPods, LLC to be the exclusive security solutions provider for CannaPod’s customizable portable cannabis grow rooms. The terms of the agreement mean that CannaPod will recommend DirectView as the vendor for its cannabis grow room environments. DirectView could then provide video surveillance, video monitoring and video recording products to CannaPods and sister company PonicPods, LLC., which makes growing environments targeted at a variety of industries including organic foods.

In regard to new products Green Cures & Botanical Distribution Inc. (OTC: GRCU) are taking steps to innovate in the cannabis and botanical industry by creating high quality hempseed oils and cannabis flower topical medicinal and botanical products. With plans to work in multiple industries including Nutritional Supplement/Dietary, Health and Wellness, Functional Beverages, Hemp and Online Marketing the company stands to gain significant sales especially in the Nutritional Supplement/Dietary industry which is evidently worth more than $31 billion in the United States. It is estimated that half of all Americans use some type of dietary supplement and 40% use nutritional ones.

MediFarm LLC, a subsidiary of Terra Tech Corp. (OTCQB: TRTC), recently obtained a special permit in Clark County, Nevada to create a medical cannabis cultivation and production facility which will allow it to expand its extensive experience in agriculture and medical cannabis growth. The company will now seek approval from the state for the proper business license to operate its facilities.

Vapor Group, Inc. (OTCQB: VPOR) is set to introduce a new line of high-end products at the Weedstock Cannabis Investor Conference in Denver. The company plans to display a new line of vaporizers including the “Vapor Box THB” which gently heats the dry herbs or oil-wax with air inside a controlled temperature heating chamber. This would vaporize without burning an herb unlike current vaporizers which use heating coils. It has been created to have a 10,000 hour lifetime.

With so much expansion in the marijuana industry the use of marijuana merchant accounts is set to grow as well as facilities look for ways to securely and effectively process payments. Payments are an important part of the industry and the facilitation of payments through a marijuana merchant account will make the process easier and more efficient.

For a Marijuana Merchant Account contact us today!

Medical Marijuana Gets Some Help…From Washington DC

Posted on June 26, 2014 by admin

Lawmakers in Washington DC are considering loosening the region’s tight rules concerning medical marijuana. At the moment, there are only four ailments for which a doctor can prescribe medical marijuana. With this change, a doctor can prescribe medical marijuana as they see fit, regardless of the patients’ ailments. This is fantastic not only for patients, but also for those in DC who have thought about opening a medical marijuana dispensary.

There are many reasons to get into the medical marijuana business, from helping the community to the simple fact that it is lucrative. However, while it is a sure moneymaker, finding a processor to process payments can be tricky. The vast majority of banks and traditional processors will not cater to medical marijuana merchants, even in areas where the business is accepted. This can be challenging, however there are processors that specialize in medical marijuana payment processing. One of the leading companies is MMJ, or marijuana-merchant-account.com.

MMJ is not new to the medical marijuana business. We have been in business for over 10 years, providing the absolute best software, security, and terminals to our clients. We know that security is of utmost importance to medical marijuana dispensaries, and we provide the best. We also provide wireless terminals, which are streamlined and easier to manage if you have a small workspace, or if you would like to move throughout your business to do your transactions. Our services are 100% legal, and we have over 10 years of happy clients to back us up. While not all areas accept medical marijuana, if you are in area that does, it is a great business to be associated with. When you decide to become a dispenser, you need to turn to MMJ for your medical marijuana processing needs.

Hopefully Washington DC will loosen their restrictions on who can benefit from medical marijuana. The changes will not only benefit those in need of the product, as well as those who are medical marijuana merchants. This change can totally transform the industry, and you need to be prepared, regardless if you are a current or prospective medical marijuana dispensary operator. You need the best marijuana payment processor in your corner. You need MMJ.

For Marijuana Merchant Processing contact us today!

Marijuana Merchant Accounts in Limbo as Health Canada Struggles to Process Applications

Posted on June 11, 2014 by admin

Health Canada is in a bind. The department responsible for overseeing the processing of medical marijuana applications has received 858 of them as of May 2014, and new applications are coming in at a rate of 25 per week. This is in stark contrast from September of last year, when Health Canada only had 156 applications to sort through. However, the number tripled by the following February, then doubled in 3 months. So far only 13 licensed suppliers have been approved and listed on the department’s website as an authorized marijuana dealer for patients seeking cannabis for pain and other symptoms, per their doctor’s recommendation.

On April 1^st, Health Canada radically changed the rules of the medical marijuana industry as they shifted the marijuana industry from a group of thousands of individual growers, loosely regulated, to a commercially competitive sector. So far prices have been set by the free market and Health Canada has imposed no limits on the number of sanctioned indoor cannabis farms one grower can have.

As a result, what began as only a few applications per month has turned into a flood of marijuana merchants eager to capitalize on the booming market. According to a spokeswoman for Health Canada, of the 858 applications, 370 were returned as incomplete, 149 were denied, 30 were rescinded, and approximately 300 are under review.

The backlog of applications is starting to frustrate prospective medical marijuana owners like Uma Syed, president of Toronto-based CannMart Inc. “They’re really an unfortunate bureaucracy under siege,” he says. “They’re dealing with a situation they weren’t prepared for….there’s something really out of whack. We’re all dressed up and nowhere to go.”

Despite applicant frustrations, a second Health Canada spokesperson said that the agency refuses to fast track the review process, which includes a rigorous file review, review of personnel security, site inspections, records-keeping, equipment, and quality control specifications. Health Canada has also been slowed down by several lawsuits that challenge the new process.

Meanwhile aspiring medical marijuana business owners find themselves stuck between an overwhelmed regulatory agency, and the likelihood of a once in a lifetime business venture that will produce a lot of green.

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Cannabis Payment Processing in Demand as Big Tobacco Prepares to Enter Cannabis Market

Posted on June 11, 2014 by admin

A recent report by the Milbank Quarterly states that big tobacco and other major players in the food and beverage industries, are poised to enter the emerging cannabis market.

“Policymakers and public health advocates must be aware that the tobacco industry or comparable multinational organizations (eg, food and beverage industries) are prepared to enter the marijuana market with the intention of increasing its already widespread use,” the report suggests. It also revealed a concern about Big Tobacco’s ability to take over the cannabis industry, stripping it from the hands of smaller cannabis businesses and entrepreneurs. This news gives some credence to cannabis professional’s long held suspicions that Big Tobacco has kept an eye on the budding industry since the surge of cannabis use in the 1960s.

The Milbank Quarterly report advises advocates and policymakers to be prepared to discuss regulations, licensing laws, and market restrictions to prevent a Big Tobacco takeover. It also asks policymakers to be prepared to draft regulations to govern the cannabis industry.

Although representatives from several Big Tobacco companies like, R.J. Reynolds Tobacco Co. and British American Tobacco deny any plans to expand into the cannabis market, recently discovered documents reveal that major cigarette brands have been researching opportunities to enter the cannabis market since the early 1960’s even though representatives also denied it at the time. In fact, the documents reveal that a Philip Morris executive contacted the Justice Department for samples of marijuana in order to perform research. The executive was allowed to skip the required FDA review of Philip Morris’ plans.

Another internal memo also stated that Philip Morris was granted a “special permit” to manufacture and grow cannabis extracts, while a scientist with British American Tobacco drafted plans for cannabis load cigarettes.

Before changes at the federal level allow for Big Tobacco to compete with your business, contact the marijuana merchant account professionals to manage your cannabis payment processing needs. We are your number one online source for high risk merchant accounts.

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Mainstream Investors Begin to see the Value of Legalized Marijuana

Posted on March 17, 2014 by admin

The legalized marijuana business may not be so taboo after all. Many investors – big-name investors – are flocking to the industry willing to lend a hand, as well as some financial resources. In the past few months, investors such as Angel/ArcView Group, has seen a phenomenal increase in membership. However, will this be a quick rise and downfall, as are most fads, or are these investors here to stay?

Thanks to the recent influx in membership, ArcView has found some big-named donors. ArcView members now include Tom Bollich, the co-founder of online social gaming giant Zynga; New York State assembly member Steve Katz; and Douglas Leighton, the founder of Dutchess Capital, a New York-based investment firm that manages $125 million in assets and has invested more than $200 million in companies across the globe. While some of these names are not much of a surprise (Tom Bollich, for example), others such as Steve Katz are. The legalization of marijuana is a hot topic across the United States, and to see a state assembly member put his trust, and funds, into the ring is a big step forward.

However, most fads see growth in their first weeks, months, or even years of its introduction. The downside is that most of the goods and ideas are in fact fads, and they will eventually go away as consumer interest fades. Marijuana may be different, as it has been around for centuries (the first documented mention of cannabis was is 3000B.C.). While excessive taxation may hinder many from purchasing, the legalized aspect will help bring in consumers who would have never dreamed of purchasing illegal marijuana. Basically, every human over the age of 21, who have a current identification card, are potential customers, and these savvy investors know it.

While the legalization of marijuana in Colorado is controversial, that has not stopped deep-pocketed investors from wanting in on the goods. With controversy comes media, and with media comes more sales. However, with legalized marijuana media attention may not be necessary for enhanced sales, as it is known worldwide for its properties, both good and bad. Only time will tell if these investors will stay put long-term, or if they will move on to another fad when the sales of legalized marijuana stabilize.

Marijuana Properties are having a Hard Time Finding Financing in Colorado

Posted on March 17, 2014 by admin

Two of Colorado’s largest banks, Wells Fargo and FirstBank, have announced that they will not offer any new loans to those whose properties are hosting marijuana dispensary businesses. Wells Fargo and Vectra Bank have already told commercial loan clients they will have to either evict the marijuana business or refinance their loan elsewhere. This is not only harmful to the new legalized marijuana businesses, but also to the property owners who may lose paying tenants.

This comes just days after federal banking regulators announced what some said was a green light for doing business with the marijuana industry. These rules require that banks continue to file reports on their interactions with marijuana businesses, and they must identify when transactions are questionable. Banks are leery that notes collateralized by property theoretically subject to federal drug-seizure laws are just too risky. Vectra made that very demand on a commercial loan that had come due, the client will have to find his own refinance bank that will deal with a property owner who hosts marijuana dispensaries.

While this may seem like discrimination against those who own and host legalized marijuana dispensaries, take into account that the federal government still considers marijuana illegal. While practically anyone over the age of 21 can go to Colorado, show there is, and purchase the newly legalized drug, it can only be used in Colorado. It cannot be taken aboard an airplane, nor can the buyer cross state lines with it. It is understandable that banks have to answer to the FDIC, or Federal Deposit Insurance Corporation, and perhaps could worry about penalties that could occur if they garner to these businesses. Regardless of one’s stance on the legalization of marijuana, it is legal in Colorado, and these business owners and their property owners seem to be pushed aside by bankers out of fear.

While the legalization of recreational marijuana has great financial benefits for the state of Colorado, it seems to be having a negative effect on those who are trying to take out property loans, or refinance property loans. While it seems unfair that these businesses and property owners are being singled out, it must be remembered that all reputable banks must answer to the federal government, and the FDIC. Because of this, and because of marijuana’s illegal stance in the federal criminal system, it seems clear that these stances will not change, at least in the near furture.

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Tag Archives: Marijuana Dispensary Merchant Account

Medical Marijuana Industry Welcomes Season of Growth in New York

The Nerve-Racking Process of Paying Marijuana Taxes

Marijuana Legalization Faces New Concerns Regarding Smuggling

Marijuana Use Positively Affects Brain Injury Patients

Medical Marijuana Industry Poised To Exceed $8 Billion by 2019

Medical Marijuana Gets Some Help…From Washington DC

Marijuana Merchant Accounts in Limbo as Health Canada Struggles to Process Applications

Cannabis Payment Processing in Demand as Big Tobacco Prepares to Enter Cannabis Market

Mainstream Investors Begin to see the Value of Legalized Marijuana

Marijuana Properties are having a Hard Time Finding Financing in Colorado

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