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Mastercard Banning Marijuana Purchases Is The Best Thing That Could Happen to the Weed Industry?

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Mastercard blocks cannabis transactions

This past week, Mastercard, a leading player in payment processing, disclosed its intention to hinder PIN-based debit card transactions for marijuana purchases. This decision is a setback for the regulated cannabis industry, which already faces challenges in offering limited payment options to consumers.

 

According to Bloomberg’s report last Wednesday, Mastercard, the second-largest payment solutions provider globally, has notified financial institutions and payment processors to cease processing marijuana purchases with debit cards.

 

This action is driven by the stringent federal regulations that restrict banks from engaging with marijuana companies, even those operating legally under state law. Consequently, most financial institutions opt not to offer standard banking services, including credit card processing, to such businesses.

 

Mastercard’s spokesperson stated that their discovery prompted the decision to take action that cannabis dispensaries were accepting debit cards for marijuana purchases. Upon learning of this matter, the company promptly conducted an investigation. Per their policies, they directed the financial institutions providing payment services to cannabis merchants and linked to Mastercard to cease such activities.

 

The Mastercard spokesperson further clarified that since the federal government deems cannabis sales illegal, their systems do not permit these purchases. Therefore, the company’s action aligns with the legal restrictions in place.

 

The industry responded with “doom and gloom” as customers will now be forced to use more physical cash, a cumbersome and dangerous process.  Remember, it was never legal to use a card with a Visa or Mastercard logo on it to buy cannabis in America. Both companies have issued numerous statement clarifing this over the years, and any version of a payment system that worked around this was considered “illegal” or “cloaking” by Mastercard and Visa. 

 

Could there be a siliver-lining in Mastercard’s decision for the cannabis industry?  Let’s look at “postive outcome” scenarios:

 

1. Safety – Whlle this move will inflict short-term pain for the industry, it will also propel safety concerns for employees and customers to the forefront of public discussion.  California is already seeing a growing trends of dispensary break-ins and robberies, this will only amplify that situation in many other states.  What congresss man or women wants to answer questions that they are putting voters in pubic harm’s way unneccessarily?

2. Cannabis is a billion dollar industry in the US already, maybe close to $13.2 billion by some estimates.  There is just too much money being moved around in transaction to go “all cash”.  The US government may be provoked to make a change in order for safety, tracking, tax purposes, etc.  This move will also embolded the illicit market, since they only use cash or a cash app already.

3. Forcing everyone to cash, considering cashless ATMS were under fire just 6 months ago as well, creates a massive opportunity for money laundering and drug cartels to move into the legal cannabis space.  DEA and ATF will not be fans of more organized crime taking over the marijuana industry.

4. Is this a slavo from Mastercard to the US government saying, “Enough is enough, get your act together so we can run a proper business with credit cards, banking, tracking, CYA documents, and let’s normalize cannabis like the alcohol and tobacco industry”? A quick read would say Mastercard is against cannabis, but what if they see the much bigger $500 million picture and this is a move to force a federal change either in legality or at least banking?

5. The US government is slowing chocking off the money supply to the legal cannabis industry with the shutdown of cashless ATMS and now Mastercard cracking down. This same gameplan was used agains online gambling establishments in the early 90s and 2000s. If we can’t stop you, we can stop the money supply and slowly put you out of business. As we fast forward 20 years, we now have Draft Kings and Fan Duel and completely legal sports betting.  A similar process may be going on now as big players are getting ready to move in, think Altria and Pfizer, so they need ot chock out the smaller players before a bigger more legit legalization move. Not saying it is an “apples to apples” comparision, but there are some similarities doing on with a gray area business coming into full legalization.

 

Dispensaries Seek for New Answers

In the wake of Mastercard’s decision to disallow debit card purchases for cannabis, cannabis dispensaries that previously relied on this method have started seeking alternative payment solutions. Peter Su, the director of specialty banking at Hanover Bank, who has been involved in cannabis banking programs and served as a payment processing consultant for the industry, reported receiving calls about the situation last week.

 

This week, the number of inquiries from affected companies has only increased. According to Su, the demand for payment alternatives is substantial, and he has been inundated with inquiries from concerned parties.

 

Notably, last year, some major ATM transaction processors, including NCR Corp.’s

Columbus Data Services, also shut down another popular payment processing system used by dispensaries called cashless ATMs. These cashless ATMs allowed consumers to use their debit cards to withdraw cash, which was then used to make payments for cannabis purchases.

 

According to Tyler Beuerlein, the chief strategic business development officer of Safe Harbor Financial Services, a company offering banking and lending services to cannabis businesses, the recent crackdown on electronic payment options has severely limited licensed marijuana retailers’ choices to conduct transactions with their customers.

 

Beuerlein noted that many retailers had shifted towards PIN debit as a preferred payment method over the past year and a half due to difficulties with cashless ATMs. However, with the current crackdown affecting PIN debit solutions, the available alternatives are reduced to ACH (Automated Clearing House) transactions or cash, presenting new challenges for the industry.

 

However, many consumers perceive ACH (automated clearing house) payments as inconvenient and potentially risky, as they involve sharing bank accounts and routing information with the dispensary. On the other hand, cannabis operators are reluctant to rely heavily on cash transactions, as it can expose retailers to the risk of robbery and other forms of theft.

Industry Push Forward For Legislative Solution

The Secure and Fair Enforcement (SAFE) Banking Act represents a crucial federal legislative solution to resolve the longstanding issue of the cannabis industry’s lack of access to traditional banking services. This proposed act seeks to grant cannabis companies legal access to essential financial services, including credit card processing, which has been a significant challenge for the industry.

 

Despite garnering bipartisan support in both the House of Representatives and the Senate, the bill has encountered roadblocks in its journey toward becoming law. While the House of Representatives has approved it on seven separate occasions, it has yet to receive a vote in the U.S. Senate, leaving the cannabis industry in a state of regulatory uncertainty.

 

Matt Darin, the CEO of Curaleaf, a prominent player in the cannabis market renowned for its substantial revenue, emphasizes the situation’s urgency. He points out that the recent crackdown by Mastercard on debit transactions for cannabis purchases underscores the pressing need for the federal government to acknowledge the cannabis industry as a legitimate, tax-paying, and job-generating sector of the economy.

 

In an email to High Times, Matt Darin highlighted the remarkable growth of the cannabis industry, labeling it one of the fastest-growing sectors in the U.S. He stated that the industry contributed over $3.7 billion in state tax revenue in 2022 and provided employment to more than 428,000 Americans. The widespread acceptance of cannabis is evident, with its legalization for medical purposes in 40 states and recreational purposes in 23 states. Moreover, 88% of Americans support the nationwide legalization of cannabis.

 

However, despite the industry’s significant economic contributions and widespread public support, Darin questioned when the laws would finally catch up with the reality of cannabis’s acceptance and potential. The disparity between the industry’s growth and legal status poses challenges for businesses and consumers.

 

By passing the SAFE Banking Act, the United States government would offer a practical answer to these difficulties and recognize the cannabis industry’s indisputable contributions to the economy. This decision might result in significant economic advantages, new jobs, and the ability of cannabis enterprises to participate entirely and responsibly in the banking system.

 

Aside from the economic benefits, legalizing banking services may improve regulatory control, making it easier for the government to monitor and enforce compliance with tax regulations and other requirements. Furthermore, eliminating reliance on cash transactions and the accompanying security threats would contribute to a safer environment for both businesses and customers.

Conclusion

Mastercard’s decision to hinder PIN-based debit card transactions for marijuana purchases represents a significant setback for the regulated cannabis industry, which is already grappling with limited payment options. The stringent federal regulations restricting banks from engaging with marijuana companies have created obstacles for financial institutions to provide essential services, including credit card processing.

 

This has forced dispensaries to seek alternative payment solutions, highlighting the urgent need for federal legislative action, such as the SAFE Banking Act, to grant legal access to traditional banking services. Recognizing the cannabis industry’s economic contributions and widespread acceptance can lead to significant economic advantages, job creation, and improved regulatory control while promoting a safer environment for businesses and consumers alike.

 

CREDIT CARDS FOR A WEED PURCHASE, READ ON…

CREDIT CARDS FOR BUYING MARIJUANA

WHY CAN’T YOU USE CREDIT CARDS TO BUY CANNABIS?



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Latest Trump Weed Rumor – Trump Will Federally Deschedule and Decriminalize Cannabis, but Not Legalize It

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trump on marijuana reform

In a recent interview, former New Jersey Governor Chris Christie made headlines by asserting that President-elect Donald Trump will pursue significant reforms in federal policies regarding marijuana and cryptocurrency. As the nation grapples with evolving attitudes toward cannabis and the burgeoning digital currency market, Christie’s predictions have ignited discussions about the potential implications of such changes on both industries. This article delves into Christie’s insights, the current state of marijuana and cryptocurrency regulations, and the broader implications of these anticipated reforms.

 

The Current Landscape of Marijuana Legislation

 

Federal vs. State Laws

Marijuana remains classified as a Schedule I substance under the Controlled Substances Act (CSA), which places it in the same category as heroin and LSD. This classification has created a complex legal landscape where states have moved to legalize cannabis for medical and recreational use, while federal law continues to impose strict prohibitions. As of now, over 30 states have legalized marijuana in some form, leading to a burgeoning industry that generates billions in revenue.

 

Challenges Faced by the Cannabis Industry

 

Despite its legality in many states, the cannabis industry faces significant hurdles due to federal restrictions. These challenges include:

  • Banking Access: Many banks are hesitant to work with cannabis businesses due to fear of federal repercussions, forcing these businesses to operate largely in cash.

  • Taxation Issues: The IRS enforces Section 280E of the tax code, which prohibits businesses engaged in illegal activities from deducting normal business expenses, leading to disproportionately high tax burdens for cannabis companies.

  • Interstate Commerce: The lack of federal legalization prevents cannabis businesses from operating across state lines, limiting their growth potential.

 

Chris Christie’s Perspective on Marijuana Reform

 

Christie, a former presidential candidate known for his tough stance on drugs during his tenure as governor, has evolved his views on marijuana over the years. In his recent statements, he emphasized that Trump is likely to pursue descheduling cannabis, which would remove it from the Schedule I classification. This move would not only provide clarity for businesses operating in legal markets but also open avenues for banking and investment.

 

Christie highlighted that descheduling would allow for a more regulated market where safety standards could be established, thus protecting consumers. He believes that this approach aligns with a growing consensus among Americans who support legalization and recognize the potential benefits of cannabis use for both medical and recreational purposes.

 

The Future of Cryptocurrency Regulation = The Rise of Cryptocurrencies

 

Cryptocurrencies have surged in popularity over the past decade, with Bitcoin leading the charge as the first decentralized digital currency. The market has expanded to include thousands of alternative coins (altcoins), each with unique features and use cases. As cryptocurrencies gain traction among investors and consumers alike, regulatory scrutiny has intensified.

 

Current Regulatory Challenges

 

The cryptocurrency market faces several regulatory challenges that hinder its growth and adoption:

 

  • Lack of Clarity: Regulatory frameworks vary significantly across states and countries, creating confusion for investors and businesses.

  • Fraud and Scams: The rapid growth of cryptocurrencies has led to an increase in fraudulent schemes targeting unsuspecting investors.

  • Consumer Protection: Without clear regulations, consumers are often left vulnerable to risks associated with volatile markets.

 

Christie’s Vision for Crypto Regulation

 

Christie believes that under Trump’s leadership, there will be an effort to find a “sweet spot” for cryptocurrency regulation balancing innovation with consumer protection. He argues that overly stringent regulations could stifle growth in this emerging sector while too little oversight could expose consumers to significant risks.

 

In his view, a balanced regulatory framework would include:

 

1. Clear Definitions: Establishing clear definitions for different types of cryptocurrencies and tokens to differentiate between securities and utility tokens.

2. Consumer Protections: Implementing measures to protect investors from fraud while promoting transparency within the market.

3. Encouraging Innovation: Creating an environment conducive to innovation by allowing startups to thrive without excessive regulatory burdens.

 

Christie’s insights reflect a growing recognition among policymakers that cryptocurrencies are here to stay and that appropriate regulations are necessary to foster growth while safeguarding consumers.

 

Implications of Proposed Reforms

 

Economic Impact

 

The potential reforms proposed by Christie could have far-reaching economic implications:

 

  • Job Creation: Legalizing marijuana at the federal level could lead to significant job creation within the cannabis industry—from cultivation and production to retail sales.

  • Investment Opportunities: Descheduling cannabis would open up investment opportunities for institutional investors who have been hesitant due to federal restrictions.

  • Boosting Local Economies: Legal cannabis markets have proven beneficial for local economies through increased tax revenues and job creation.

 

Similarly, clear regulations around cryptocurrencies could stimulate investment in blockchain technology and related industries, fostering innovation and economic growth.

 

Social Justice Considerations

 

Both marijuana legalization and sensible cryptocurrency regulations have social justice implications:

 

  • Addressing Past Injustices: Legalizing marijuana could help rectify past injustices related to drug enforcement policies that disproportionately affected marginalized communities.

  • Financial Inclusion: Cryptocurrencies offer opportunities for financial inclusion for those underserved by traditional banking systems, particularly in low-income communities.

 

Political Landscape

 

The political landscape surrounding these issues is complex. While there is bipartisan support for marijuana reform among certain lawmakers, challenges remain in overcoming entrenched opposition. Similarly, cryptocurrency regulation has garnered attention from both sides of the aisle but requires collaboration to establish effective frameworks.

 

Conclusion

 

Chris Christie’s predictions about President-elect Donald Trump’s approach to federal marijuana descheduling and cryptocurrency regulation suggest a potential shift in U.S. policy that could significantly reshape both industries. As public opinion evolves on these issues, lawmakers have an opportunity to enact meaningful reforms that promote economic growth while ensuring consumer protection. The anticipated changes could foster a more robust cannabis industry that contributes positively to the economy and addresses social justice concerns, while clear regulatory frameworks for cryptocurrencies could encourage innovation and protect consumers in the digital economy. Stakeholders in both sectors are closely watching these developments, eager to see how potential reforms might impact their futures. While the realization of Christie’s predictions remains uncertain, it’s clear that the conversation around marijuana and cryptocurrency regulation is ongoing and far from settled.

 

TRUMP 2.0 ON CANNABIS REFORM, READ ON…

TRUMP ON MARIJUANA REFORM

TRUMP 2.0 ON FEDERAL CANNABIS REFORM – WHAT DO WE KNOW?

 



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Webinar Replay: Post-Election Cannabis Wrap – Smoke ’em if You’ve Got ’em

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On Thursday, November 7th, Vince Sliwoski, Aaron Pelley and Fred Rocafort held a post election discussion “Post-Election Cannabis Wrap – Smoke ’em if You’ve Got ’em”. Watch the replay!

Key Takeaways from the “Smoke ’em if You’ve Got ’em – 2024 Post Election Cannabis Wrap” Webinar:

  1. Panelists:
    • Vince Sliwoski: Oregon Business lawyer specializing in cannabis and commercial real estate.
    • Aaron Pelley: Experienced in cannabis law since Washington’s legalization in 2012.
    • Fred Rocafort: Trademark attorney working closely with the cannabis team.
  2. Election Results Overview:
    • Most 2024 cannabis ballot measures did not pass.
    • Florida, South Dakota, and North Dakota saw failures.
    • Nebraska became the 39th state to legalize cannabis for medical use when it passed two cannabis initiatives, Initiatives 437 and 438.
  3. Federal and State-Level Developments:
    • Medical use is currently legal in 38 states, and 24 states allow recreational use.
    • Republican support for marijuana legalization is growing.
  4. Federal Policy Implications:
    • Schedule III Rescheduling: The process to move cannabis to Schedule III is ongoing, which could significantly impact the industry.
    • Importance of Federal Appointments: The future of cannabis policy depends heavily on who is appointed to key positions in the administration.
  5. International and Domestic Trade:
    • Schedule III status could ease import/export restrictions on cannabis.
    • Unified control of House, Senate, and presidency might expedite legislative progress.
  6. Economic and Industry Impact:
    • Cannabis stocks experienced volatility post-election, reflecting investor uncertainty.
    • Federal legalization and banking reforms are crucial for industry stability and growth.
  7. Future Outlook:
    • The potential for federal rescheduling remains strong, with hearings scheduled for early 2025.
    • State-level initiatives and regulatory developments will continue to shape the industry.

Watch the replay!



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I Had Just One Puff

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one puff of a joint a drug test

“How Long Does One Puff of Weed Stay in Your System?”… This topic can be difficult to answer since it is dependent on elements such as the size of the hit and what constitutes a “one hit.” If you take a large bong pull then cough, it might linger in your system for 5-7 days. A moderate dose from a joint can last 3-5 days, whereas a few hits from a vaporizer may last 1-3 days.

 

The length of time that marijuana stays in the body varies based on a number of factors, including metabolism, THC levels, frequency of use, and hydration.

 

Delta-9-tetrahydrocannabinol, or THC, is the primary psychoactive component of cannabis. THC and its metabolites, which remain in your body long after the effects have subsided, are detected by drug tests.

 

Since these metabolites are fat-soluble, they cling to bodily fat molecules. They could thus take a while to fully pass through your system, particularly if your body fat percentage is higher.

 

THC is absorbed by tissues and organs (including the brain, heart, and fat) and converted by the liver into chemicals such as 11-hydroxy-THC and carboxy-THC. Cannabis is eliminated in feces at a rate of around 65%, while urine accounts for 20%. The leftover amount might be kept within the body.

 

THC deposited in bodily tissues ultimately re-enters the circulation and is processed by the liver. For frequent users, THC accumulates in fatty tissues quicker than it can be removed, thus it may be detectable in drug tests for days or weeks following consumption.

 

The detection time varies according to the amount and frequency of cannabis usage. Higher dosages and regular usage result in longer detection times.

 

The type of drug test also affects detection windows. Blood and saliva tests typically detect cannabis metabolites for shorter periods, while urine and hair samples can reveal use for weeks or even months. In some cases, hair tests have detected cannabis use over 90 days after consumption.

 

Detection Windows for Various Cannabis Drug Tests

 

Urine Tests

Among all drug tests, urine testing is the most commonly used method for screening for drug use in an individual.

 

Detection times vary, but a 2017 review suggests the following windows for cannabis in urine after last use:

 

– Single-use (e.g., one joint): up to 3 days

– Moderate use (around 4 times a week): 5–7 days

– Chronic use (daily): 10–15 days

– Chronic heavy use (multiple times daily): over 30 days

 

Blood Tests

Blood tests generally detect recent cannabis use, typically within 2–12 hours after consumption. However, in cases of heavy use, cannabis has been detected up to 30 days later. Chronic heavy use can extend the detection period in the bloodstream.

 

Saliva Tests

THC can enter saliva through secondhand cannabis smoke, but THC metabolites are only present if you’ve personally smoked or ingested cannabis.

 

Saliva testing has a short detection window and can sometimes identify cannabis use on the same day. A 2020 review found that THC was detectable in the saliva of frequent users for up to 72 hours after use, and it may remain in saliva longer than in blood following recent use.

 

In areas where cannabis is illegal, saliva testing is often used for roadside screenings.

 

Hair Tests

Hair follicle tests can detect cannabis use for up to 90 days. After use, cannabinoids reach the hair follicles through small blood vessels and from sebum and sweat surrounding the hair.

 

Hair grows at approximately 0.5 inches per month, so a 1.5-inch segment of hair close to the scalp can reveal cannabis use over the past three months.

 

Factors Affecting THC and Metabolite Retention

 

The length of time THC and its metabolites stay in your system depends on various factors. Some, like body mass index (BMI) and metabolic rate, relate to individual body processing, not the drug itself.

 

Other factors are specific to cannabis use, including:

 

– Dosage: How much you consume

– Frequency: How often you use cannabis

– Method of consumption: Smoking, dabbing, edibles, or sublingual

– THC potency: Higher potency can extend detection time

 

Higher doses and more frequent use generally extend THC retention. Cannabis consumed orally may remain in the system slightly longer than smoked cannabis, and stronger cannabis strains, higher in THC, may also stay detectable for a longer period.

 

How Quickly Do the Effects of Cannabis Set In?

 

When smoking cannabis, effects appear almost immediately, while ingested cannabis may take 1–3 hours to peak.

 

The psychoactive component THC produces a “high” with common effects such as:

 

– Altered senses, including perception of time

– Mood changes

– Difficulty with thinking and problem-solving

– Impaired memory

 

Other short-term effects can include:

– Anxiety and confusion

– Decreased coordination

– Dry mouth and eyes

– Nausea or lightheadedness

– Trouble focusing

– Increased appetite

– Rapid heart rate

– Restlessness and sleepiness

 

In rare cases, high doses may lead to hallucinations, delusions, or acute psychosis.

 

Regular cannabis use may have additional mental and physical effects. While research is ongoing, cannabis use may increase the risk of:

 

– Cognitive issues like memory loss

– Cardiovascular problems including heart disease and stroke

– Respiratory illnesses such as bronchitis or lung infections

– Mood disorders like depression and anxiety

 

Cannabis use during pregnancy can negatively impact fetal growth and development.

 

Duration of Effects

Short-term effects generally taper off within 1–3 hours, but for chronic users, some long-term effects may last days, weeks, or even months. Certain effects may even be permanent.

 

Bottom Line

The amount of time that cannabis remains in your system following a single use varies greatly depending on individual characteristics such as body fat, metabolism, frequency of use, and mode of intake. Frequent users may maintain traces of THC for weeks, whereas infrequent users may test positive for as little as a few days. Hair tests can disclose usage for up to 90 days, while blood and saliva tests identify more recent use. Urine tests are the most popular and have varying detection durations. The duration that THC and its metabolites are detectable will ultimately depend on a number of factors, including dose, strength, and individual body chemistry.

 

PEE IN A CUP COMING UP, READ ON..

how long does weed stay in your urine

HOW LONG DOES WEED STAY IN YOUR URINE FOR A DRUG TEST?



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