Mastercard, the credit card and payment processing company, has asked US financial institutions to stop authorizing cannabis-related transactions on its debit cards due to the federal illegality of cannabis in the United States. This decision was made after the discovery that some stores were still 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 federal illegality of cannabis. 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 retailers to stop these illegal transactions. This measure specifically targets cannabis businesses, and especially dispensaries, to prevent them from offering debit card payment options that require customers to enter their account PIN. While 38 U.S. states allow the 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 seeking 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 its use. 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 within dispensaries, with proponents arguing that simply conducting business with cash facilitates potential theft and puts employees at risk. The US Senate, controlled by Democrats, intends to pass the SAFE Banking Act, which aims to protect banks and their employees from penalties when serving legal cannabis businesses in the state. However, even after eight attempts, the bill may still fail to pass. Furthermore, there are still fierce opponents to this law 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/.
