Mastercard , the credit card and payment processing company, has asked US financial institutions to no longer allow cannabis-related transactions on its credit cards, due to the illegal status of cannabis at the federal level in the United States.
This decision was made after the discovery that some stores were accepting debit card payments
In the United States, the giant Mastercard has asked American financial institutions to block the authorization of cannabis-related transactions on debit cards, due to the illegal status of cannabis at the US federal level.
This decision was made following the discovery that some stores were still accepting debit card purchases, despite the federal ban.
Mastercard reacted strongly by immediately launching an investigation and asking financial institutions that provide payment services to cannabis merchants to stop these illegal transactions.
This measure is specifically aimed at cannabis businesses, and especially dispensaries , to prevent them from offering debit card payment options that require customers to enter their account PIN
While 38 US states allow medical use of cannabis and 23 states allow recreational use for adults over 21, Mastercard's decision could have consequences for the legal cannabis industry and for consumers looking for more convenient payment methods.
Unlike the United States, where legal cannabis transactions are almost entirely conducted in cash, Canada, which legalized cannabis nationwide in 2018, often allows customers to use credit or debit cards for cannabis purchases.
This financial restriction highlights the legal and financial ambiguity of the cannabis industry, even as more and more US states legalize the use of the plant.
Many major banks and credit card companies have generally refrained from facilitating cannabis purchases, due to federal cannabis laws, leaving buyers in legal states with limited payment options.
Legislative efforts are currently underway to allow cashless transactions inside dispensaries, with supporters arguing that simply conducting business with cash facilitates potential theft and puts employees at risk.
The U.S. Senate, controlled by Democrats, intends to pass the SAFE Banking Act , which aims to protect banks and their employees from penalties when they serve legal cannabis businesses in the state.
However, even after eight attempts, the bill could still fail to pass. Furthermore, there are still fierce opponents to this bill among both Democrats and Republicans.
Time will tell. However, if Mastercard's decision were to be adopted unanimously, it would be a major blow to legal cannabis in the United States.
Source :
https://www.newsweed.fr/mastercard-bloque-achats-cannabis-legal-etats-unis/.
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