Mastercard is banning marijuana transactions on its debit cards, hitting an industry already at the edges of the U.S. financial system.
Despite several states legalizing its medicinal and recreational use, most banks in the country are refraining from providing services to cannabis companies due to its federal illegality.
“As we were made aware of this matter, we quickly investigated it. 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,” a spokesperson for the company said on Wednesday.
They added, “The federal government considers cannabis sales illegal, so these purchases are not allowed on our systems.”
In a statement, Sunburn Cannabis CEO Brady Cobb said that “this move is another blow to the state-legal cannabis industry and patients/consumers who want to access this budding category.”
According to Pot firm Verano’s President, Darren Weiss, “We will continue to advocate for cannabis reform in Washington through further dialogue with elected officials and stakeholders to advance conversations supporting the growth of safe, legal cannabis across the U.S.”
Discover more from Baller Alert
Subscribe to get the latest posts sent to your email.
