There are 23 States in the US where medicinal cannabis is legal now and you can jolly well walk into a dispensary and score some weed. How would you pay for it though? The proposition of using your debit or your credit card could be a little tricky.
Visa and Master Card have made it amply clear that they are not going to go against federal laws and work with the various cannabis industries. The American people take the credit and debit card for granted. They think they can buy any service or commodity with these cards. This isn’t true and the present situation has landed the people in a thick bowl of soup.
Now CanPay has come to the rescue and they say that they have devised a new debit payment solution for cannabis transactions. With this commodity cannabis shoppers can now knock themselves out in Oregon, Colorado and Washington.
Many dispensaries out there claim that they do accept Visa and Master Cards. While this may be true, Dustin Eide, the chief executive officer of CanPay says, “Likely they are using some type of Visa or MasterCard solution, which is not endorsed by Visa or MasterCard.”
Either this is the case or some of the cannabis selling companies are just misleading the banks as to the nature of the trade or just finding new and creative ways to set up Merchant accounts for transactions.
There are ATMs beside some of the city dispensaries, but they charge a $5 fee for every transaction. Nobody lives to pay extra for no apparent reason. CanPay will remove the on-site ATM conundrum. It will generate a QR code or a single use token that you have to show to the retailer for the transaction, who then pays the transaction charges, believes Forbes.
Setting the Path
It’s not just Visa and Master Card that doesn’t endorse the cannabis industry, neither does Apple or Google. They have not allowed this app on their app markets. So CanPay has had to open its own website for transactions.
This new debit system only works with banks that work with the cannabis industry. The dispensary also has to work with one of the depositories program that is cannabis compliant.
Eide concludes that Visa and Master Card will enter the market soon, but by then CanPay will be miles ahead and a whole lot cheaper.