Cannabis consumers of the famed marijuana dispensary can now relax as the latter makes arrangements to roll out its credit card. For the longest time, clients have had to pay for cannabis using cash which is both tiresome and unsafe for all parties involved. Columbia Care which is a dispensary with at least 11 dispensaries in different states in the US – is the first one of its kind to ensure the said clientele can buy marijuana online with a credit card.
The introduction of credit card payments is a breath of fresh air for customers who have never had other options for paying for their products of choice. Banks and credit card companies have stayed away from dealing with marijuana dispensaries, leaving them with no choice but to deal in cash.
The reason for shunning away these marijuana businesses is because of the long conflict between federal law and state law, which differs on almost everything cannabis-related. Under federal law – cannabis is still a Schedule 1 drug which makes it illegal all over the US.
That said, there are quite a number of states in the US that have legalized both medicinal and recreational cannabis, respectively. This creates differences in the way commercial banks view cannabis businesses.
Although it is not that simple – it is less complicated to purchase cannabis seeds with a credit card than it is actually to buy weed. Many dispensaries have lost good business because clients are always asking for better payment methods as some of them do not have time to visit the dispensaries and prefer online transactions.
Credit companies fear backlash from the government, which is why they try very hard to avoid dealing with marijuana-related businesses, even in states where the product is legal.
The further most dispensaries have gone to put up onsite ATMs where clients have to withdraw cash and pay for their preferred products. Other businesses have gone further to set up systems that allow clients to pay with ATM cards.
For many marijuana companies, the legalization of marijuana was supposed to make things easier – but that was never the case. In some ugly ways, they have remained the same. This is the reason why many companies are thinking outside the box. Columbia Care CEO, Nicholas Vita was recorded blatantly calling out the idea of cash payments in an interview with CBS News, “We have an industry where people have to use their debit cards or ATMs or cash to make purchases. It’s like 1974”.
When clients visit marijuana dispensaries, whether for recreational or medicinal purposes – they part with at least $100 to $144. Unfortunately, banks have made it ultimately clear they do not want any business with said businesses because this is a win-win for all parties involved.
Although The Secure and Fair Enforcement SAFE Banking Act is in the senate and is yet to be passed, many marijuana-associated businesses have their hopes up as this will open new financial doors for them and their clientele. It will also protect these businesses since their cash will be much safer than it currently is.
The bill is already passed by the House of Representatives and is meant to create protection for institutions that marijuana businesses decide to bank with. These institutions will be allowed to make transactions for legitimate marijuana businesses and cannabis-related ventures as well as providing other banking services for the same.
Even with a medical marijuana card, banks were still against the idea of making any transactions for clients so long as the product involved is marijuana. This act will not only protect the bank but other institutions that are interested in depository transactions with the said cannabis businesses.
For such a long time, banks have had nothing to do with company ventures due to the fear of the backlash from the law. But that is coming to an end with the passing of the SAFE Banking Act, which will revolutionize the way marijuana dispensaries do their business.
But before that, Columbia care is taking things into their own hands and dealing with the problem as it is. With the unveiling of these new credit cards from the dispensary, the company is bound to make more sales since clients can feel free to purchase high-quality weed anytime they choose.
Many are the times when clients have had to go home with nothing after visiting various cannabis dispensaries. A good number of people never carry cash around, which leaves credit and ATM cards available. Columbia Care puts its clientele before everything else because they are the most critical part of the business. This allows both the client to experience the medicinal benefits of marijuana and the company to make good profits, which is a win-win situation. Columbia Care is the first and only company that has even attempted to create its credit card and after the trials in their New York branch – the company will roll out the cards to other branches.