Dispensaries are teaming up with Hospitals and Universities

Posted on June 26, 2014 by admin

Medical marijuana dispensaries are gearing up to team with hospitals and universities, in areas where medical marijuana is legal. This is fantastic for patients who would rather rely on the natural benefits of medical marijuana rather than pills. While this is not yet set in stone, it represents a great opportunity for those who are interested in being medical marijuana merchants.

Medical marijuana dispensaries are not only helpful to the community, but they can also be lucrative. There is a high need for these businesses, yet many are hesitant to invest in these businesses due to many factors, from ever-changing regulations to difficulty finding an account processor. While there is very little that the public can do about the fast changing regulations, there are options available to those who are having a hard time locating a willing bank to provide a merchant account for their medical marijuana business. One of these options is marijuana-merchant-account.com.

Marijuana-merchant-account.com, or MMJ, is one of the top marijuana merchant account providers in the United States. We have over 10 years of account and processing experience within the medical marijuana industry, and we know the hassles that can come with the fast-changing regulations. We will keep you abreast of new and changing regulations, so you can help your business, and customers, stay on the right track. We offer top of the line security, software, and terminals to help keep your company safe and secure. In additional to traditional terminals, we also offer wireless, more streamlined terminals, which is great if you have a small workspace. Regardless of the size of your business (or prospective business), MMJ is here to help you.

Medical marijuana dispensaries are gearing up for partnerships with hospitals and universities. While these agreements are not set in stone, they are promising to medical marijuana users and merchants. This is the perfect time to consider operating a medical marijuana business, and your first step should be locating an experienced and reliable medical marijuana merchant account provider. You should look no further than MMJ.

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Cannabis Legalization Having Interesting Effects on the U.S.

Posted on June 11, 2014 by admin

MMJ BUSINESS AND BANKS

There is a perception that major banking institutions avoid payment processing for Marijuana merchants. This perception is false, however, as more banks are now revealing their dealings with marijuana merchants since the Obama administration released new guidelines on how financial institutions can legally do business with cannabis dealers. Recently the chief executive officer of a Nevada bank reported that they would do business with dispensaries that will be opening there.

John Sullivan, president and chief executive officer of First Security Bank of Nevada, told KNPR, “Frankly, I didn’t personally follow any of this until about two months ago… (but then) we began to get phone calls from attorneys, and they represented some very influential people in Las Vegas with a long history of being strong supporters of the city.” He continues, “These are not the sort of people that are in dark shadows or they’re coming in from somewhere else…these are local people who have spent their life here and they have an unblemished reputation in all ways.”

Sullivan admitted that he was skeptical at first of the growing cannabis banking trends, but after reviewing research on the industry and reading the recent banking guidelines set out by the federal government, he and the First Security Bank of Nevada board decided to proceed.

After looking at all of the facts, Sullivan noted, ““It became clear that the attitudes of the federal government – both the bank regulatory agencies as well as the Department of Justice – are quickly changing.”

First Security Bank of Nevada hopes to be able to start payment processing for Marijuana merchants soon. As the first bank in Nevada to openly admit to dealing with cannabis dealers, other banks contemplating doing business with marijuana merchants will be watching their interaction with the government carefully.

PITCHING POT

New government regulations have started a flood of applications from aspiring cannabis businesses into Nevada. As marijuana becomes legal in states throughout the nation, each one is left to decide how to process and grant licenses. In Clark County, Nevada, applicants will be required to organize a six minute pitch to the county commissioners and the public over a three day period. The commissioner board will then select 18 finalists and forward them to the state for final approval.

SEC WATCHING CANNABIS STOCKS

Cannabis stock trading is coming under scrutiny by the SEC as the industry is starting to boom. After temporarily suspending five cannabis-related stocks, the SEC warned investors about committing fraud within the sector. A year ago there were only a dozen publicly traded companies in the cannabis market, now there are more than 100.

Now the SEC is keeping a close watch on a sector that is used to coloring outside of the lines. With reports of shady investors, fudged financial numbers, and questionable business practices. Most marijuana merchants are frustrated by these practices. They note if the marijuana industry wants to be taken seriously, it must clean up its act.

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Banking progress for Marijuana Merchant Accounts in Colorado and Washington

Posted on May 22, 2014 by admin

For those servicing the new commodity in Colorado and Washington, things are beginning to work out for the better. A long time coming are some banking options that were not available a year ago.

Colorado speed bumps

In Colorado co-ops will be created that are to service accounts specific to the needs of the market with marijuana buyers and growers. Sellers might have a bit of an issue for a time, but all the other elements are falling into place. Marijuana Merchant accounts will be over seen by the state’s financial services commissioner.

Each co-op will do business very similar to that of a credit union, without the requirement of deposit insurance: Thereby, leaving each new business owner without that extra FDIC insurance, through the federal government, in case the institution fails. Deposit insurance is that little extra kick all other consumers get when they deposit money, and it seems a bit out of the ordinary for Colorado to set up these new businesses, with the expectation of failure.

Washington as well

Washington has stepped up the bar a bit further. They are already using well established credit unions through Numerica Credit Union. They don’t want to offer accounts to the recreational stores but will work with the processors and the growers.

On the other hand, they won’t let them have more than five million dollars in any account.

-They won’t let them have debit or credit cards for their accounts.

-They won’t let them deposit any check remotely.

-All deposits must be done in person and they won’t let them deposit in the night deposit.

-Of the 17 branches that Numerica has, the person with the new medical marijuana account, must live in the area in order to even have an account.

And last, but not least……. They won’t let them make deposits or withdraw their own money from other credit unions that are part of the same credit union network.

Progress

Indeed, it is being made….. but at what expense? The person trying to run their new business will have to move to the right county and make any deposits in person. They can’t access their own money but in person and not from other atm machines. Indeed, progress. But is it really?

Is the Government turning their heads on Privateer Holdings?

Posted on April 30, 2014 by admin

One of the largest private equity firms in the cannabis industry is Private Holdings. They raised more than $50 million dollars in the last fundraising and the firm is expecting to finalize investments and close its Series B financing effort at the end of May, with the Privateer Chief Executive Officer Brendan Kennedy.

The dollar amount is significant for the cannabis industry; there is documented information that shows high level investors are finally starting to pump money into the cannabis sector. Kennedy said there have been several institutional investors, who had no interest in this industry and wanted no part of it in the past. Now they all want in, because they are witnessing millions of dollars flowing into the industry and investment firms along with some wealthy individuals from mainstream businesses all around the world are starting to invest in these cannabis companies that they once turned their noses up at or didn’t want others to know if they invested in anything connected with marijuana.

ArcView Group has seen a 50% spike in their membership over the last three months. And the ranks have increased more than five times in a year.

Chicago investment firm Lincoln Park Capital Fund closed a deal to channel $27-million dollars into the publicity traded biotechnology company named Nuvilex “they will use this money for MMJ research”.

Mediswipe a publicity traded company that provides various products and services to the cannabis industry received a $1.1-million dollars funding commitment from a private equity firm. This company was also reported to have offered another $500,000 dollars in loans to assist Colorado dispensaries and cultivation operations with the purchase of high dollar equipment and real estate.

Privateer Holdings, which is a cannabis private equity firm that is run by a variety of investment banking veterans, has witnessed interest from investors on the rise and it will not be long before it reaches $25-million dollars in its second funding. In the first funding the firm raised $7-million dollars.

The surge in interest from the mainstream investors has been very successful for the cannabis executives. And cannabis executives are looking forward to the additional surge in the interest rates from the recreational marijuana companies.

There are two executives from High Times magazine, that recently teamed up to start a new investment fund and they are looking to raise $100-million dollars in two years, while the cofounder of a dispensary listing giant WeedMaps has gone in a similar direction. The cannabis business leaders want to continue to saturate the market with the recreational cannabis dispensaries.

The recreational marijuana sales in Colorado and the impending launch of Washington’s adult-use program there have been some major players that have joined this new market. This recreational market is where you will find the real money, and investors are now starting to see recreational marijuana is a money maker.

The federal government is no longer trying to regulate the marijuana markets; they are pretty much taking hands off approach as they lower the risks.

The future is looking very profitable for the businesses that use to be a “can I get a $5.00-dollar bag”?

Traditional Payment Processing Services Freeze Out Medical Marijuana Merchant Accounts

Posted on April 25, 2014 by admin

Medical marijuana is legal in 17 states and in the District of Columbia. However, federal law does not recognize marijuana dispensaries as legal operations. As a result, medical marijuana dispensaries are being blocked out of banking services. The Huffington Post reported that Wells Fargo recently denied banking services to a Colorado medical marijuana company. “The complex, inconsistent legal environment relating to medical marijuana dispensaries, Wells Fargo has opted not to bank these businesses,” said a representative of the bank.

As major credit card processors like Discover and American Express have decided to not engage in marijuana dispensary payment processing services, other payment processing organizations have also used the ambiguous legal environment to refuse processing services to legal marijuana dispensers. Recently VISA and Mastercard announced that they would let individual acquiring processors decide if they would process marijuana merchant accounts. As a result, large payment processing company, Electronic Merchant Systems (EMS) told its customers last summer:

“In light of recent developments, we wanted to reach out and make you all aware of the latest news regarding Medical Marijuana merchants. Effective July 1st, 2012, MMJ merchants will no longer be able to accept Visa or MasterCard credit or debit cards.”

Traditional Banks

The freeze out by traditional banks and major credit card processors has forced the medical marijuana industry into a “cash only” industry, where customers are forced to carry large sums of cash like criminals to dispensaries. Despite these setbacks, some payment organizations have found creative ways to manage marijuana merchant accounts through payment cards where consumers perform in-person transactions via a PIN-based terminal. The transaction is then processed as a cash withdrawal using a debit card or cash advance.

marijuana-merchant-account.com has easy payment processing solutions for retail and delivery dispensaries. Don’t leave your patients vulnerable to robbery or make them feel like criminals, by having to carry large amounts of cash to purchase their medication. Our services let your patients donate at the point of sale using a credit or debit card and a PIN number.

The transaction will only cost patients a small convenience fee ranging from $0.99 – $2.00. We offer debit card, credit card, and savings account services. Our retailers choose us for their marijuana merchant accounts because there are no discount rates, interchange fees, or processing fees.

Our MMJ delivery services also offer electronic payments on the go. Patients simply swipe their card, enter the PIN using a PCI compliant device and access their funds for donation to Medical Marijuana merchants.

It’s just that easy! Contact us at: 1-800-466-1809 to set up your marijuana merchant account today.

Cannabis Production May Limit Inventories, Create Dispensary Shortages

Posted on March 19, 2014 by admin

Recreational marijuana dispensaries and growers in Washington State have concerns about the state’s cap on cannabis production. Washington State currently has allotted a 2 million square foot canopy cap for recreational cannabis. Yet, the recreational marijuana industry could face a demand that far exceeds the supply and production capability.

Colorado’s Precedent

January 2013 marked the first month of legal recreational marijuana in the state of Colorado. Dispensaries in Colorado struggled in the opening month of the new industry with many complications. Recreational marijuana businesses contended with long lines, inventory shortages, and price hikes.

Many dispensaries in Washington State believe that recreational marijuana revenue could exceed medical marijuana revenue by up to 300%. Business owners point to Colorado as an example. The RAND corporation estimated Washington State’s cannabis consumption at 175 metric tons in 2013. The cannabis consumption cap would place Washington’s marijuana production rate at roughly 1/4th the consumption rate. Tax-paying businesses may lose the opportunity to acquire transactions that exist on the black market.

Growers Uncertain

Washington State’s recreational marijuana growers remain uncertain about the cannabis cap. Growers can apply for up to three licenses at three different tiers. The most ambitious grower applying for three of the largest available licenses could avail of 90,000 square feet to grow cannabis. Yet the 2 million square foot cap would only allow for 22 growers of that caliber. With more than 2,600 grower’s license applications, growers are stuck in limbo about the reality of their business plans.

Conservative Lawmakers’ Cannabis Concerns

The number of applicants combined with a cap that restricts production far below estimated consumption create dire implications for the new industry. Lawmakers intended to ensure Washington State is not left with a surplus of Cannabis that cannot move over state lines.

Yet the lawmakers may be forfeiting the opportunity to bring marijuana transactions off the black market and into tax-paying dispensaries. If the supply and production is not capable of creating adequate inventories for dispensaries, the entire industry will be hamstrung before it can begin walking.

Oregon Senate Judiciary Committee Hears Arguments for Local Marijuana Regulation

Posted on March 19, 2014 by admin

Legal battles continue in the state of Oregon over control over medical marijuana regulation. The Oregon state Senate Judiciary Committee held a public hearing in February about a proposal for medical marijuana regulation. The proposal sought to give local authorities the ability to regulate the new marijuana industry.

Senate Judiciary Committee Proposal

The Association of Oregon Counties and League of Oregon Cities supported the proposal. The changes would include the limitation of products that may be attractive to kids as well as forbidding a dispensary being within 1,000 feet of a school. The proposal intends to give local governments the ability to regulate the marijuana industry. Oregon’s current legislation has little regulation for the industry.

Other supporters of the proposal include the Associations of Chiefs of Police, the Oregon Farm Bureau, Associated Oregon Industries, Oregon Forests Industries Council, the Oregon District Attorneys Association, and the Oregon Association of Realtor.

Oregon began registering medical marijuana facilities March 1st, 2013.

Local vs. State Regulation

The underlying struggle for regulation is between local government entities and the state government. Local organizations hesitate to trust the brand new marijuana industry to regulate itself. The new industry features little standards for appropriate business practices. The lack of regulation from the state level creates unease for those who didn’t support marijuana legalization. Misgivings are still high about this new industry.

Proponents for state regulation argue that local governments shouldn’t restrict patients from accessing their medication. State-wide regulation would mean Oregon residents would have uniform access to medical marijuana regardless of where they live.

Impact on Dispensaries

The regulation of marijuana laws can have a profound impact on marijuana dispensary businesses. If a business is registering as a marijuana dispensary local regulation could break the business. A business could have to navigate a city’s regulation, the county’s regulation, state guidelines, and federal guidelines.

The layered system of regulation could cost a marijuana dispensary time, resources, and money–all commodities a small business can rarely afford. As Oregon and other states begin moving towards legalized marijuana dispensaries, medical or otherwise, dispensary owners will need to keep a keen eye on regulation legal battles.

After Colorado’s Legalization of Marijuana there are still more banking questions than answers

Posted on March 17, 2014 by admin

The new banking guidance issued by the federal government has left the cannabis industry with more questions than answers, thanks to federal laws that still state that marijuana is still illegal. Many in the industry hoped the memos, would open the floodgates for cannabis businesses to begin accessing traditional banking services.

However, there are some indications that the guidance might not have real implications. Many mainstream financial institutions and banking organizations said they would need to see concrete changes to marijuana’s federal classification under the Controlled Substances Act before they will work with the newly state-legalized industry. In addition, there are some in the industry who believe the guidance will help loosen the banking situation, while others are worried about a possible rise in fraudulent banking schemes.

In the days following the joint memos, major U.S. banks and banking institutions have upheld their refusal to work with the industry. Wells Fargo said the bank is reviewing the government’s new guidelines but would continue to ban cannabis businesses because, based on federal law, the sale of marijuana is still illegal. The American Banking Association stated similarly that cannabis businesses can still face federal prosecution and assorted sanctions.

Regardless, cannabis entrepreneurs should be extremely cautious of frauds and false banking opportunities during the coming weeks and months, as it is sure to run rapid. These companies probably will send the money to an offshore account, or into an aggregate account under the businesses’ name. Both banking practices are illegal, and should be reported to authorities if you are contacted by one. The best thing to do is to try to deal with a local, trusted, reputable bank when looking for loans and accounts.

While the monetary value of the legalization of marijuana is fantastic for Colorado, however federal banking laws may hinder business success. Business owners should be careful dealing with any type of financial institution, regardless of their business, but especially with business that are as risky as the legal marijuana business. When in doubt, stay with familiar banking names, and always make sure you are speaking to a banking manager when doing business.

Credit Card Companies & The Cannabis Industry – An Evolving Process

Posted on January 23, 2014 by admin

It has emerged recently that credit card companies are beginning to allow customers to purchase cannabis with credit cards in recreational marijuana stores. This action certainly marks a significant change, because in previous years, credit card companies have been strongly against working with the cannabis industry. This article will discuss the evolving relationship between credit card companies and cannabis businesses.

It has been said that the reason behind the recreational marijuana stores in Colorado allowing credit card transactions from its customers is primarily down to Visa and MasterCard’s decisions to not enforce their own rules. This may have sparked from the August 29^th Cole Memo in which the government said it wouldn’t pursue criminal charges against companies working legally within state laws. Taking this into consideration, is it possible that credit card companies are becoming more lenient towards the cannabis industry because of the government’s ever-developing tolerance towards it?

Another factor to take into consideration when thinking about the relationship between credit card companies and cannabis businesses is the increase of marijuana merchant accounts that are readily available to many businesses, just like the recreational marijuana stores in Colorado, as a significant example.

Although the federal government still consider cannabis as being ‘illegal’, they have certainly loosened their grasp on this law over the years. The law itself still stands, but the government have begun to rely on local bank acquirers to determine whether a transaction is illegal or not. Visa said in a statement to the Wall Street Journal that it does still follow the rules made by the federal government, which actually considers the cannabis situation to be ‘an evolving legal matter’.

Despite the almost lenient attitude these days towards cannabis businesses in the USA, from both credit card companies and the federal government, it’s still definitely a work in progress. Lance Ott of Guardian Data Systems has said that he does not believe the credit card companies are changing their attitudes at all, but are instead allowing marijuana business take advantage of any loopholes they can find. Despite this, the situation is certainly less strict than it has been in the past, and this only proves how accepting the world is becoming towards marijuana use.

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Credit and Debit Card Processors Ease Rules for Recreational Marijuana

Posted on January 23, 2014 by admin

Many of the recreational-marijuana companies are claiming to be unbanked. However, many of these stores are able to process other payment methods besides cash with the use of marijuana merchant accounts.

Customers where surprised when they learned they didn’t have to rely on cash as a method of payment when purchasing their cannabis. From the start Visa and MasterCard stated that they had the policy that no illegal transactions were being completed in their systems. However, they have softened when it comes to this policy and are now stating they are leaving it to merchant banks to decide what the definition of illegal will be.

In a recent statement Visa says, “In offering our payment service, Visa adheres to the rule of law and seeks to prevent our network from being used for unlawful purposes.”

The major credit card company backed off last year when the federal raids in California and Colorado were going on with the suspected medical marijuana businesses. This made it where the cards could not be used for medical marijuana purchases since September.

Federal regulators have given a firm guidance to bankers in lieu of offering marijuana merchant accounts to marijuana based businesses. However, these services are not being provided until the onus has been lifted by the government.

Many of the businesses selling recreational marijuana have claimed that they are unable to receive marijuana merchant accounts yet they have teller and credit-card machines that are operating in stores. In order to operate these machines they must have a bank account or merchant account. ATM networks do not use Visa and MasterCard but they still require a bank account in order to credit transactions.

marijuana-merchant-account.com can help you set up your MMJ merchant account Today!

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