Lawyer, activist, and all around nice guy Tom Howard is back with his weekly instalment of all things cannabis. In this episode, he explains the background behind what enables credit card use. The following is his summary of the video accompanied by the video.
I’m Tom, and you’ve probably don’t know me, but if you’re in the Industry – I like you and want you to do well. You can see me up there on youtube, and it would be super sweet if you subscribed because then you’ll get exclusive access to all the video blogs on operating a cannabis business in America.
I got a pretty simple mission, to make sure that the cannabis industry grows into a completely legal industry all across the globe – it may take a minute. Who am I to do that? Why not google “Tom Howard marijuana” and see. I’m donating one hour of my time each week to answer questions from the Industry. So tune in each week. And check out the recaps here.
Here’s the takeaway from the video above regarding using credit cards to buy cannabis.
What it is:
- A Point of Banking System (PBS) creates a cash-free ATM
- The PBS uses your debit card, or credit card if you can remember your PIN, to do a cash transaction.
- It feels like you’re buying legal cannabis with credit cards.
What it is not:
- Using credit cards to buy your state-law compliant cannabis.
- Credit cards do not have a merchant code for cannabis
- Credit card companies push back on this because it is technically money laundering on their system of credit and they are fearful they will be shut down.
I think that the defunding of federal prosecution of the nation’s marijuana laws has implications on the legality of the transactions, but that may be misplaced due to the standards and practices of statutory drafting – which is such a dry topic that it will not be addressed here.
Currently, billions of dollars are being spent on cannabis transaction that are perfectly legal in the state in which they occur, while being somewhat banned in the country. Still, Jeff Sessions and the Department of Justice have not taken any actions to stop Colorado, California, or any state.
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