Mastercard Inc. MA recently jolted the cannabis industry with a demand: "In accordance with our policies, we instructed the financial institutions that offer payment services to cannabis merchants and connect them to Mastercard to terminate the activity," stated a Mastercard spokesman.
This seismic move to prohibit marijuana transactions on debit cards is creating new headwinds for an already struggling cannabis industry.
As first reported by Bloomberg, Mastercard's decision followed a swift internal investigation after becoming aware of PIN debit cards on their network being used for cannabis purchases.
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"As we were made aware of this matter, we quickly investigated it," a company spokesman noted, reflecting Mastercard's commitment to its corporate policies. However, the enforcement of these policies introduces a new hurdle for cannabis businesses banking on seamless financial transactions.
Last week, Mastercard implemented this decision by dispatching cease-and-desist letters to financial institutions associated with cannabis transactions on its network.
SAFE Banking Act For Cannabis Businesses Stability And Growth
The cannabis industry finds itself scrambling for alternative financial avenues to ensure operations without breaching financial institutions' policies and regulations. Recognizing this need, the American Trade Association for Cannabis and Hemp and 16 state-level cannabis trade groups recently lobbied Senate leaders to pass the Secure and Fair Enforcement (SAFE) Banking Act.
This bill aims to enable cannabis businesses to access banking services, replacing the untenable and dangerous cash-only operational scenario that exposes businesses to significant public safety concerns, including violent robberies.
Amid these financial challenges, the 17th edition of the Benzinga Cannabis Capital Conference in Chicago on September 27-28 offers invaluable insights into the shifting landscape of cannabis regulations. Get your tickets today before prices increase and secure a spot at the epicenter of cannabis investment and branding.
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The Benzinga Cannabis Capital Conference is coming to Florida
The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.
Get your tickets now on bzcannabis.com – Prices will increase very soon!