Unfortunately, Mastercard just told U.S. banks to block all marijuana transactions for its debit cards, Newsmax reported.
“The federal government considers cannabis sales illegal, so these purchases are not allowed on our systems,” Mastercard stated. “In accordance with our policies, we instructed the financial institutions that offer payment services to cannabis merchants and connect them to Mastercard to terminate the activity.”
Cannabis-related businesses that facilitated PIN debit payments are receiving cease-and-desist letters from Mastercard, leaving the them to search for alternative solutions.
Earlier this year, the Senate Banking Committee held its first hearing on the Secure and Fair Enforcement (SAFE) Banking Act, which seeks to make it easier for the cannabis industry to access banking services.
The SAFE Act would shield banks and their employees from being penalized for providing services to cannabis businesses in states where marijuana use is legal.