Mastercard Bans Cannabis Debit Card Purchases
Mastercard has banned cannabis debit card purchases which has shaken up the cannabis industry.
Mastercard has notified financial institutions that they have banned cannabis purchases on their debit cards (1). This has dealt a blow to the United States (US) cannabis industry which has been suffering due to cannabis’s Schedule I ruling and federal illegalization. With no support from the US federal government, the cannabis industry is beginning to suffer, and businesses are unable to pay their bills. The Secure and Fair Enforcement (SAFE) Banking Act was the prayer answered to cannabis businesses but unfortunately it hasn’t garnered enough support to pass and keeps hitting opposition from the Republican party (2). A group of state cannabis associations are urging Senate leaders to pass a bipartisan banking bill for the cannabis industry due to the struggles it is facing.
In the US, most banks do not provide services for cannabis companies due to the plants’ illegalization. Unfortunately, it doesn’t get better businesses in states that have passed legalization measures for recreational or medicinal use.
“As we were made aware of this matter, we quickly investigated it. In accordance with our policies, we instructed the financial institutions that offer payment services to cannabis merchants and connects them to Mastercard to terminate the activity,” a spokesperson for the company said on Wednesday (1). “The federal government considers cannabis sales illegal, so these purchases are not allowed on our systems,” the spokesperson added.
In a statement (1), Sunburn Cannabis CEO, Brady Cobb, stated how, “this move is another blow to the state-legal cannabis industry and patients/consumers who want to access this budding category.”
Mastercard’s ban on cannabis transactions still inspires and riles companies up to continue advocating and not to give up on what can help the cannabis industry. Pot firm Verano's President, Darren Weiss, mentioned (1), “We will continue to advocate for cannabis reform in Washington through further dialogue with elected officials and stakeholders to advance conversations supporting the growth of safe, legal cannabis across the U.S.”
Earlier in July 2023, Republican Senator John Cornyn commented how Majority Leader Chuck Schumer’s plan to pass a cannabis banking bill was “wishful thinking”.
In a time where credit institutions are negatively impacting the cannabis industry with their bans on cannabis purchases, it shows how crucial the SAFE Banking Act is needed to save the industry from losing their businesses and fear of federal crackdown for both banks and businesses (1,3).
References
- Nishant, N.; Dhumal, T. Mastercard Moves to Ban Cannabis Purchases on its Debit Cards https://finance.yahoo.com/news/mastercard-demands-termination-cannabis-purchases-174141843.html (accessed Jul 28, 2023).
- Jaeger, K. State Marijuana Associations Rally to Urge Marijuana Banking Vote “Without Further Delay” https://www.marijuanamoment.net/state-marijuana-associations-rally-to-urge-marijuana-banking-vote-without-further-delay/ (accessed Jul 28, 2023).
- Casacchia, C. Mastercard Ban on Cannabis Debit-card Purchases Rocks Industry https://mjbizdaily.com/mastercard-ban-on-cannabis-debit-card-purchases-rocks-industry/ (accessed Jul 28, 2023).
Ep 24, Part III: Data Transparency in Cannabis Testing with Yasha Kahn
December 26th 2024In the final part of this episode, Evan Friedmann and Yasha Kahn discuss the need for a national entity to centralize cannabis data collection, moving from snapshot data to continuous updates. They emphasize the importance of accurate lab data and adverse event tracking, suggesting QR codes on packaging to report issues. Yasha suggests harsher consequences for result manipulation and suggests collaboration between state departments and federal entities to support underfunded regulators. They also discuss the potential benefits of off-the-shelf testing and the importance of stability testing. Finally, Yasha shares his top three reading recommendations for the audience.
Ep 24, Part II: Data Transparency in Cannabis Testing with Yasha Kahn
December 12th 2024Evan Friedmann and Yasha Kahn, co-founder of MCR Labs, discuss the discrepancies between current regulations and data on mycotoxins and pesticides in cannabis products. They highlight the need for updated regulations based on new data, emphasizing the importance of accurate testing and labeling. They also discuss the issue of result manipulation, particularly in THC content, and the need for public health officials to address this. Yasha suggests making testing data public to enhance oversight and suggests a national entity to manage this data for better consistency and public safety.
