The Cannabis Industry’s
First Legal & Compliant
Merchant Processing Program!
The Background and The Solution!
Taking credit card payments in the Cannabis Industry is NOT Legal. Until Cannabis becomes federally legal, Visa, MasterCard, American Express, and Discover do not allow any merchants in the Cannabis Industry to accept their credit cards for payments.
Originally, merchants lied on their merchant applications as to the nature of their business and didn’t include the word, cannabis, in the name of their business. When they got found out, their merchant account was immediately shut down and they were put on a “Hawk Alert” list.
Cashless ATM is a common work around but is, in fact, fraudulent. Read this news article to avoid legal consequences. Visa does not allow Cannabis merchants to run payments via their debit network called Interlink. MasterCard, likewise, does not allow cannabis payments on their debit network called Maestro. Merchants are getting shut down when caught taking debit payments on these networks with their cashless ATM terminals.
The Solution: True Pin Debit Vs Cashless ATM
True Pin Debit
Sales are for the exact $ amount of purchase
Avoids handling and storing cash
Increase sales by 25%
Seamless transition to credit cards when legalized
No risk of payments being shut down
DBA and business on descriptor and receipts
Fully Legal Solution
Full transparency to banks
Sales rounded to nearest $5
Cash difference refunded to customer Sales
Customers leary of paying add’l ATM fees
No integration to credit cards
Risk hitting “Hawk” alert and merchant account being shut down
Violates the Durbin amendment
Fraudulently disguises cannabis transaction violating federal and state anti-money laundering statutes
Desktop Pin Debit Terminal
Merchant Application Requirements Checklist
Completed and Executed Merchant PRE-Application
Terminal Order Form - Required to Authorize Deployment and ACH Charge for Terminal Setups.
Bank Statements, 3 Most Recent Months - Must Match the Desired DDA for Daily Deposits (May Request Personal Bank Statements for Startups and New Businesses.)
Processing Statements with Chargeback & Return Activity - 3 Most Recent Months if applicable.
Storefront Signage Photo & Lease/Utility - Must contain signage matching Merchant DBA or Legal Name.
If Unable to Validate via Google Maps, Merchant Must Provide Storefront Signage Photo AND a Lease Agreement or Utility Bill in the Business' Name at the Physical Address.
Articles of Incorporation/Organization - Entity Must Be in Good Standing with Secretary of State
Business Address on Aol/AoO Must Match Legal Address of Merchant of Record.
DBA Certificate and/or Trade Name Validation Document, if applicable
Active MRB/Cannabis License(s) Featuring Business Legal and/or DBA Name
If <30 Days from Expiration, Application Will be Pended Until Renewal Confirmation is Received.
Merchant Must Provide Licenses for All Applicable Jurisdictions and Jurisdiction Programs.
Drivers License - Front and Backsides for Each Beneficial Owner, Authorized Signer & Authorized Contact.
Fully Executed Operating Agreement or Corporate Bylaws - No Word or Editable Documents
Articles of Organization for Single-Member LLG's
Voided Check (No Starter/Temporary Checks), or Bank Letter Featuring the following:
Bank Letterhead with Current Date
Legal Business Name and DBA, if applicable
Bank Account Number (DDA) and Routing Number (ABA)
Type of Bank Account - Must be Checking Account; No Savings Accounts
Bank Representative Name and Signature
Branch Location and Phone Number
Terminal Set Up Questionnaire& Separate terminal list if applicable
Terminal Order FormIf purchasing new units
Once pre application if verified, merchants will execute the Merchant Processing Agreement, Bank Attestation Disclosure, and MRB Addendum electronically via E-Signature. Bank Attestation means merchants must attest that their depository bank has a BSA/AML complaint cannabis program and is fully aware that merchants is involved in the cannabis industry.
Website & Online Presence Requirements
Health-Related Claims are Prohibited on All Merchant-Controlled Online Presences, Including Social Media
Including But Not Limited to Single Terms Like Inflammation, Anxiety, Stress, Pain, Relief, etc.
Merchants of Records: Legal Entity Authorized and Primarily Liable for the Merchant Account. Merchant of Record also needs to be the licensee of Cannabis License on file.
Beneficial Owner: Any Natural Person with a Direct on Indirect Equity Interest in the Merchant of Record.
Any Secondary Entities (C- & S-Corps, LLC's, LP's, Trusts, etc.) with an Equity Interest in the Merchant of Records will Need to Provide an Ownership Validation Documentation Until Every Natural Person with 15% or Greater Ownership is Identified.
Authorized Signer: Non-Equity-Holding Person with Signing/Executive Permissions.
Authorized Contact: Non-Equity-Holding Person with Information-Handling Permissions.
Cannot Sign Documents to Make Changes to Account Information of Settings.
What You Will Need to Have Ready Before Applying for Pin Debit Payments at Your Cannabis Dispensary!