100% Legal, Bank-Approved
Accept PIN-based debit card transactions, to give customers the ability to withdraw money in your store, and buy products.
Yes, cannabis dispensaries can accept PIN-based debit card payments only if the merchant services provider is using a bank-owned ATM networks instead of the credit card processing network.
This strategy is 100% legal and fully compliant with card brand mandates and federal law.
- Federal law classifies cannabis/marijuana as a Schedule I drug under the Controlled Substances Act.
- It is illegal for cannabis dispensaries to accept credit card or debit card payments at checkout using traditional card processor networks.
- Cashless ATMs and other cleverly diguised illegal workarounds using credit card networks are also illegal. Avoid them.
- METRC: Marijuana Enforcement Tracking And Compliance is active and highly effective.Law breakers will get caught and suffer the consequences. METRC provides end-to-end tracking and tracing for all cannabis supply chain activities, ensuring a closed, legal ecosystem.
- Comprehensive Tracking: Metrc assigns unique identifiers to each cannabis plant and product, monitoring every step of the supply chain, including cultivation, production, transportation, and retail sales.
- Regulatory Compliance: The system is used by state agencies to oversee cannabis businesses, prevent diversion, and protect public health.
- Real-time Updates: Metrc allows for real-time inventory management and updates, facilitating accurate record-keeping and regulatory audits.
- Data Collection: The system collects extensive data on cannabis products, enabling regulators to perform audits, conduct investigations, and enforce compliance measures efficiently.
Point of Banking (POB) Technology
POB machines, also known as cashless ATMs, allow customers to use their debit or credit cards with PIN access to make payments at retail cannabis dispensaries and smoke shops.
The legality of whether or not cannabis dispensaries can accept bank-issued debit cards at the point-of-sale depends on which of the four networks is used by the merchant services provider.
How Point of Banking & ATM Network PIN Debit Works
Do not confuse private bank owned ATM networks (e.g. the only 100% legal card acceptance solution for dispensaries) with often illegal or deceptive workarounds such as “cashless ATMs.” They are not the same.
Reference Sources:
- Current Benefits of Banking Legal Cannabis Businesses. Bank Director Magazine: June 6, 2023. https://www.bankdirector.com/article/current-benefits-of-banking-legal-cannabis-businesses/
- Financial Support Services Tailored For Cannabis Enterprises. Herring Bank: https://www.herringbank.com/business-banking/cannabis-banking/los-angeles/
The Importance Of Compliant Cannabis Banking. (Forbes Magazine: Aug 2020) – https://www.forbes.com/sites/forbesfinancecouncil/2020/08/06/the-importance-of-compliant-cannabis-banking/?sh=58dfec986a40
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- No Set Up Fees or Application Fees
- Fully compliant with federal law and card brand mandates - under the condition that PIN-debit transactions are routed through bank-owned the ATM network instead of the credit card processor networks.
- Next Day Settlement of Funds
- Real-time Reporting: Review and track payment activity in one retail store location or hundreds.
- A+ Rated, Better Business Bureau accredited business.
