The burgeoning recreational marijuana industry – illegal at the federal level and in some 18 U.S. states – has faced multiple challenges throughout the years, mostly because of the Schedule 1 status of the cannabis plant.
The biggest problem? Banking, of course.
As in life, retailers have had to find a way to work around the system. Some cannabis merchants have begun using cashless ATMs to bypass limitations on the types of sales payment cards they can legally accept.
One of the largest payment processors in the world, Visa Inc. (NYSE: V) recently issued a compliance memo to customers warning them that incorrectly coding point-of-sale transactions via cashless ATMs could be penalized or punished by unspecified enforcement procedure, reported Marijuana Moment.
Visa’s warning comes on the heels of the marijuana banking reform bill that was recently chopped from Congress’ defense bill. The latest version of the Congressional defense bill left out several key provisions that were in the House-approved National Defense Authorization Act (NDAA), including the much-anticipated marijuana banking reform known as the Secure and Fair Enforcement (SAFE) Banking Act, which would protect banking and financial institutions that work with state-legal cannabis companies.
Aware Of A Scheme
Visa’s memo from Dec. 2 obtained by Marijuana Moment revealed that the company …