From The Weed Street Journal archive. This article was published before James Buddsey took over the site and is queued for review and update.
No green for green is the new rule for medical marijuana patients. As a result of new regulations medical marijuana patients will have to fork over cash for purchases as dispensaries will no longer be able to accept credit or debit cards.
As of July 1, customers of dispensaries around the 17 states where medical marijuana is legal can no longer process purchases with credit or debit card, turning dispensaries into cash-only businesses.
Medical marijuana is also legal in Washington, D.C., however four planned dispensaries are not scheduled to open until sometime this fall.
Although medical marijuana is legal in specific states, the the federal government is paid to treat any transaction involving the substance as illegal. Now the Department of the Treasury is stepping up efforts to regulate banks and merchant processors who fear accusations of anything considered drug trafficking.
Aaron Smith, executive director of the National Cannabis Industry Association said the new regulation is already being heavily enforced by Visa and MasterCard in all medical marijuana states.
“Of greater concern is the safety of patients and employees of the dispensaries, as cash businesses (of any nature) can attract crime,” Smith said.
There are an estimated 2002 dispensaries in medical marijuana states, according to Pot411, with the majority located in California. While some in San-Francisco have always functioned as cash-only businesses, customers who are used to using plastic for green, can potentially become a cash-carrying targets for criminals.
“Dispensaries will continue to serve their patients but this development will just make the jobs of regulators and tax collectors more difficult, as they are now forced to regulate and collect taxes from cash-only businesses,” he said. “Of greater concern is the safety of patients and employees of the dispensaries, as cash businesses (of any nature) can attract crime.”
According to Americans for Safe Access, low-income patients will also be affected by this turn of events. Those on a fixed income who usually buy an ounce for the month will have to dole out more money for smaller purchases, such as an eighth.
The Weed Street Journal
