Can You Use a Credit Card at a Dispensary in California?
Currently, legal cannabis consumerism and business existence in California are legal for both medical and recreation. However, when it comes to making payment for the products that are sold at dispensaries the use of credit cards is not as easily facilitated. While there is nobody who wants to be without a credit card in today’s world, dispensaries in California and other states where marijuana is legal are experiencing several issues due to federal prohibitions. But can you use credit cards in a dispensary in California? Let’s take a deeper look.
Credit Cards and Purchases for Cannibus: The Federal Ban
The first thing one needs to appreciate before getting into the issues involved is that cannabis is still prohibited in the United States under federal law even though it is legal in California for medicinal as well as recreational uses. The US federal government banned the sale of cannabis and referring to it as a Schedule I controlled substance under the CSA. Therefore, any federally chartered bank or other financial institution cannot legally handle any transactions related to cannabis, irrespective of the state’s legal position concerning marijuana.
The companies which issue credit cards are also governed by federal laws inclusive of Visa, MasterCard, and American Express. These institutions fall under the federal law, therefore, they have restricted the use of their cards in marijuana based businesses no matter the state laws in the country.
The Issues Experienced By Marijuana Enterprises
To them, this federal restriction is an impediment in their operations. Currently, cannabis businesses cannot afford to use the normal payment processing systems that involve credit cards. This issue does not only affect dispensaries but grows across growers, producers, and any other seller of cannabis products.
Subsequently, several dispensaries are challenged with working on cash basis. The customer deletes credit card payment methods for products and services, meaning customers have to provide cash. This not only cause inconvenience to customers but also pose security threat since many stock large amounts of cash on site.
Paying at Dispensaries
Although credit card payments are not accepted, there are several other methods of payment in California dispensaries include.
- Debit Cards: There are some that accept debit card as a form of payment since the use of debit card is considered direct banking transfers that violate federal laws. Nevertheless, debit card transactions might not be accepted at all, and the use of such an option will depend on the dispensary relationships with banks.
- Cash: Cash is still the majority choice for payment at California dispensaries. An on-site cash machine is often available at most dispensaries, in case of clients who have come with cash intending to spend on the products. But it comes with additional inconvenience in the form of additional fees and choosing a shopping platform.
- Cannabis-Specific Debit Cards: As a result, some dispensaries and cannabis businesses are looking for diversified financial solutions meant for the cannabis market. These services like the CanPay app enable the clients to make the payment in a safe electronic transfer in relation to the accounts they have thus excluding the problems related to credit cards. However, these services are not always provided and the customer may need to download a certain application or open an account.
- Cryptocurrency: There are reports that some of the dispensaries are now using the cryptocurrencies like the famous Bitcoin or Ethereum to cover the above ractment brought about by the restriction of the conventional banking system. Cryptocurrencies are not regulated under federal laws and as such can be used by some marijuana establishments. However, the acceptance of cryptocurrency in dispensaries remains limited and could not, therefore, be accepted by all store.
The Push for Change: Advocating for Banking Reform
Because of the federal restriction regarding the processing of marijuana related transactions, there have been demands for a change. Most in the marijuana business have called for reform of federal banking laws, they have stated that granting marijuana related business access to banking services would lead to increased safety and reduction in the risk posed by handling too much cash besides increasing convenience to the buyers.
There is hope though in the purported SAFE Banking Act, that was recently presented to the Congress. This bill for individual financial establishments should guarantee businesses dealing with legalized cannabis, including credit card facility and loans among others. Although the SAFE Banking Act has been approved, it remains a non-law to this present moment, thus, the difficulties of a cash-only business continue in the cannabis industry.
Will the situation Safeguard Change?
Although there are prospects for passage of federal banking reform in the near future, the latter is still unpredictable. At present, medical marijuana business in California is allowed to accept other forms of payments which exclude credit card facilities. Consumers should ensure they will need to support, or regard the dispersion payment system, and have some cash or cannabis-specific debit cards or cryptocurrency handy.
It however looks like there could be some positive changes as the fight for legislative success and federal banking change ensues, in a bid to facilitate the dispensaries and the customers who seek to buy weed products with more ease but in safety.
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Conclusion
Purchases with credit cards at dispensaries in California are currently impossible because of federal regulations regarding banking with cannabis. , in PH, though customer can still buy, they have limited options whereby they can use cash or other forms of payments such as debit cards or bitcoins. Because the federal laws are still in a process of gradual changes and the attempts to provide cannabis businesses with better legal circumstances for accepting credit card payments can be considered as a promising steps towards the credit card payments’ openness in future.
Until the federal government changes its position on pot, dispensaries and consumers will have to do what they can with the current setup: avoiding credit card business while working toward change.
