Mastercard Bans Cannabis Debit Card Purchases
Mastercard has banned cannabis debit card purchases which has shaken up the cannabis industry.
Mastercard has notified financial institutions that they have banned cannabis purchases on their debit cards (1). This has dealt a blow to the United States (US) cannabis industry which has been suffering due to cannabis’s Schedule I ruling and federal illegalization. With no support from the US federal government, the cannabis industry is beginning to suffer, and businesses are unable to pay their bills. The Secure and Fair Enforcement (SAFE) Banking Act was the prayer answered to cannabis businesses but unfortunately it hasn’t garnered enough support to pass and keeps hitting opposition from the Republican party (2). A group of state cannabis associations are urging Senate leaders to pass a bipartisan banking bill for the cannabis industry due to the struggles it is facing.
In the US, most banks do not provide services for cannabis companies due to the plants’ illegalization. Unfortunately, it doesn’t get better businesses in states that have passed legalization measures for recreational or medicinal use.
“As we were made aware of this matter, we quickly investigated it. In accordance with our policies, we instructed the financial institutions that offer payment services to cannabis merchants and connects them to Mastercard to terminate the activity,” a spokesperson for the company said on Wednesday (1). “The federal government considers cannabis sales illegal, so these purchases are not allowed on our systems,” the spokesperson added.
In a statement (1), Sunburn Cannabis CEO, Brady Cobb, stated how, “this move is another blow to the state-legal cannabis industry and patients/consumers who want to access this budding category.”
Mastercard’s ban on cannabis transactions still inspires and riles companies up to continue advocating and not to give up on what can help the cannabis industry. Pot firm Verano's President, Darren Weiss, mentioned (1), “We will continue to advocate for cannabis reform in Washington through further dialogue with elected officials and stakeholders to advance conversations supporting the growth of safe, legal cannabis across the U.S.”
Earlier in July 2023, Republican Senator John Cornyn commented how Majority Leader Chuck Schumer’s plan to pass a cannabis banking bill was “wishful thinking”.
In a time where credit institutions are negatively impacting the cannabis industry with their bans on cannabis purchases, it shows how crucial the SAFE Banking Act is needed to save the industry from losing their businesses and fear of federal crackdown for both banks and businesses (1,3).
References
- Nishant, N.; Dhumal, T. Mastercard Moves to Ban Cannabis Purchases on its Debit Cards https://finance.yahoo.com/news/mastercard-demands-termination-cannabis-purchases-174141843.html (accessed Jul 28, 2023).
- Jaeger, K. State Marijuana Associations Rally to Urge Marijuana Banking Vote “Without Further Delay” https://www.marijuanamoment.net/state-marijuana-associations-rally-to-urge-marijuana-banking-vote-without-further-delay/ (accessed Jul 28, 2023).
- Casacchia, C. Mastercard Ban on Cannabis Debit-card Purchases Rocks Industry https://mjbizdaily.com/mastercard-ban-on-cannabis-debit-card-purchases-rocks-industry/ (accessed Jul 28, 2023).
Collaboration, Gender Diversity, and Progress: Julie Kowalski on Advancing Cannabis Science
December 10th 2024In this interview with Cannabis Science and Technology, Julie Kowalski, an experienced analytical chemist, discusses her path into the cannabis industry, starting with early work in gas chromatography. Kowalski reflects on her perspectives as a female scientist, highlighting biases she’s experienced and the benefits of gender inclusivity in the cannabis space. Greater unity and professionalism could benefit the industry as a whole, she explains. She also encourages collaboration and more women in leadership positions in order to build a stronger scientific community, and also urges women to advocate for themselves, noting that women in cannabis face unique obstacles but often demonstrate consensus-building strategies and solutions.
Ep 24, Part I: Data Transparency in Cannabis Testing with Yasha Khan
November 21st 2024Evan Friedmann interviews Yasha Khan, co-founder of MCR Labs, about his journey into the cannabis industry and his efforts to promote transparency and integrity in laboratory practices. Yasha discusses the origins of MCR Labs, which began in Massachusetts to meet the needs of the soon-to-be legal medical cannabis market. He explains the challenges faced, including result manipulation by labs and the impact on public health. Yasha's Freedom of Information Act (FOIA) project aimed to gather testing data from 37 states, revealed significant discrepancies in potency and mold results. Despite some states' reluctance to share data, Yasha has made much of this data public, leading to collaborative research and publications on various aspects of cannabis testing.
Gender Diversity and Innovation in the Cannabis Space: Insights from Tess Eidem, PhD
December 9th 2024Cannabis Science and Technology sat down with Tess Eidem, PhD, PCQI, member of Saturn Scientific, LLC, to discuss her journey from antibiotic research to cannabis microbiology and her observations throughout her career. Dr. Eidem highlights challenges women face in this male-dominated industry, including limited representation in leadership roles and frequent experiences of bias and discrimination. She emphasizes the importance of gender diversity in fostering innovation, improving product safety, and addressing women’s health needs in cannabis applications. Her advice to women scientists is to build strong professional relationships and carefully evaluate work environments to advance their careers in this evolving and often challenging space.
Ep 23, Part III: Accreditation in the Cannabis Industry with Susan Audino
October 24th 2024In Part III of this episode, host Evan Friedmann is joined by Susan Audino, PhD, founder of S.A. Audino & Associates, LLC, and co-founder of Saturn Scientific, LLC, to examine the complexities of sampling in the cannabis industry, emphasizing the need for proper sampling plans, and methods.
