Government Leans on Payment Processors To Hurt Medical Marijuana Industry
IRS threats are turning the business into a cash industry
Eighteen states and the District of Columbia have legalized medical marijuana, and some dispensaries enjoy millions of dollars in annual sales. However, such establishments may not be ideal clients for ISOs unless they and their sale agents exercise caution, say those who work with the medical marijuana industry.
Dispensaries are facing increased resistance from federal authorities and the major card brands, making maintaining banking relationships and obtaining merchant transaction services more difficult.
"Over the course of the last seven years, despite the fact that we are an excellent financial services customer, we've had our bank accounts closed four times and our merchant services processing closed more times than that. I don't even remember how many times it's happened," says Steve DeAngelo, co-founder and executive director of Harborside Health Center, the country's largest dispensary, which has locations in Oakland and San Jose, Calif.
(H/T NP Complete)