Tag Archives: Medical Marijuana Industry

Recreational Marijuana Continues to Thrive Over the Medical Industry

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Recreational MarijuanaIt seems like medical marijuana cards are no longer the key to purchasing and enjoying weed in Oregon.

The recreational marijuana industry is taking over rendering the cards less valuable compared to the past when they meant everything. These days they only matter as “discount cards” but are not necessarily a requirement for buying and possessing pot. The advantage with a medical marijuana card is that it saves you the hefty state and local cannabis taxes charged on recreational marijuana. As a result, medical weed dealers are experiencing a drop in their daily sales.

According to Sam Elkington of Track Town Collective, a dispensary in Glenwood, the sales had plummeted to as low as $58 on Monday afternoon— the main reason Elkington is unable to employ other staff at the store. He added that of all potential buyers that walk into his small store, only 3 to 4 come for medical marijuana, the other 15 to 20 are potheads looking for recreational pot which the law still prohibits him from selling.

And as a smart entrepreneur, Elkington is willing to embrace the evolution of the cannabis market in Oregon. That’s why he plans to switch from the medical marijuana business to the currently booming recreational pot industry. This would mean cancelling his status as a medical cannabis dispensary with the Oregon Health Authority and applying with the Oregon Liquor Control Commission as recreational weed seller.

More medical pot dealers to go Recreational

Nowadays, Medical pot cardholders have the freedom to buy marijuana either at a medical store or at a recreational shop. This has worsened the playing field for medical marijuana dealers and rendered them financially indefensible.

It’s no wonder 5 out of the 21 medical pot license holders have given notice to the state on their plan to give up medical marijuana licenses and apply as recreational weed sellers with the OLCC. According to Jonathan Modie, Spokesman at Oregon Health Authority, only four license holders showed signs of staying put as medical marijuana dealers.

Wrapping Up

The recreational cannabis industry has always been a gold mine back from the days when it was underground. And now that it has been decriminalized (in some states) we expect to see significant changes in the market.

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Yet Another Bank Backs Out of the Medical Marijuana Industry

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imgresWith federal regulations being so strict in the medical marijuana industry, it’s incredibly difficult for marijuana businesses to work with banks. This leaves them with few choices such as dealing with cash transactions only. This comes with several complications and reduced profits.

The First Security Bank of Nevada has been working in the medical cannabis industry for over a year and has just recently decided to back out of the industry. With incredibly strict federal regulations, it was more a burden than it was profitable for them, causing them to exit the business before losing any more money.

Although over 23 states in the US have legalized the use of medical marijuana, the federal government is making it increasingly difficult for banks to work with dispensaries. With such foggy regulations and complex paperwork, most banks that are actually willing to attempt working with the industry find it to be more troublesome than it’s truly worth.

Medical Marijuana Payment Processing

When dealing with cash only, many risks arise. One of the biggest risks is transportation of the funds. Although most dispensaries work with high security transportation businesses for carrying the cash, some are still not capable of affording such a luxury. This makes cash transportation extremely risky.

Another downside is loss in profits. Not every patient can pay in cash, causing many patients to avoid buying medical marijuana altogether.

Fortunately, medical marijuana payment processing solutions are available. With high-risk payment processors such as MMA, dispensaries can in fact work with offshore banks to deal with transactions. Not only does it allow these businesses to increase their profits, but it also adds incredible amounts security.

Getting a medical marijuana payment processing account allows dispensaries to accept credit card payments and use the profits other than in cash only. It essentially allows marijuana businesses to experience the same amount of comfort as any other business.

An additional benefit is that merchant processors such as MMA provide merchants with mobile card readers. With most medical cannabis patients being quite ill and unable to physically go to dispensaries with ease, this is a huge perk. It provides dispensaries with the ability to make home deliveries. Getting a high-risk merchant account is the best solution available at the moment and far surpasses dealing with cash transactions only.

Contact us to get setup with Merchant Solutions for your MMJ business today!

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Medical Marijuana Dispensaries find themselves Caught between Conflicting Laws

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Marijuana Business FundingHundreds of individuals have found themselves in the middle of legal conflicts over medical marijuana, even though they completed all of the required legal steps to open a dispensary. It would seem that the concerns over the differences in state versus federal law are beginning to materialize.

The main source of this conflict is coming from a little-publicized amendment to the 2015 appropriations bill. Referred to as a “buried land mine”, Congress barred the Justice Department from spending any money to prevent states from implementing their own state laws that either authorize the possession, use, cultivation or distribution of medical marijuana.

The Justice Department, however, is adamant that the amendment does not undercut its power to enforce federal drug law. On the federal level, marijuana is still listed as a Schedule 1 substance along with Heroin, LSD, Ecstasy and Bath Salts, to name a few.

In addition, The Justice Department claims that the amendment only bars federal agencies from interfering with state efforts to carry out medical marijuana laws. They have also claimed that it does not preclude criminal prosecutions for violations of the Controlled Substances Act.

This “wild card” has led to many surprises in several cases in both California and Washington State. All of this contradiction and conflict has led to new challenges in the journey of legalizing medical marijuana. It also leaves federal judges with no choice but to have to give their opinion – and soon.

As things continue to heat up over state vs. federal input on legalized marijuana, the need to have every “I” dotted and every “T” crossed will be even more important. This is especially true considering that the defendants in these cases made sure to have all of the legal steps required by their state to be taken care of, but still ended up in hot water with federal law.

When searching for means of funding, for example, traditional lending sources are going to be more reluctant than ever to provide their services to anyone involved in this industry. Fortunately, alternative funding options like securing marijuana business funding with marijuana-merchant-account.com means that you will not only have a safe and efficient solution, but you will also be working with a provider that specializes in offering solutions to the medical marijuana industry.

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