MAINE, USA — With many hesitations surrounding the ever-growing cannabis industry, Mastercard is now doing away with debit transactions for dispensaries nationwide, advising financial institutions to follow new guidelines.
NEWS CENTER Maine reached out to Mastercard, who said the decision was based on its policy for its customers to conduct "lawful activity where they are licensed to use our brands. The federal government considers cannabis sales illegal, so these purchases are not allowed on our systems."
Marijuana, medical or not, is still labeled as a federally illegal drug, but it is legal here in Maine.
Currently in the U.S., marijuana, medical or not, is classified as a federally illegal drug. Just last year, the state recorded more than $158 million dollars in total sales in the adult-use market, according to a report from the Maine Office of Cannabis Policy.
"Scrutiny from the banking and financial institutions kind of provides a turbulent landscape for us to operate on," Tyler Cresbo, who operates Ripple Wellness in Saco and Biddeford, said.
While many businesses are already using a cash-based model, he says this pushback will send a handful of businesses back to the drawing board when it comes to giving options at the checkout counter.
For local banks, following those federal and legal guidelines is crucial.
"Most banks are hesitant to do business with cannabis-related businesses because of that risk or threat," CEO of Kennebunk Savings Brad Paige said. "It puts the business owners of the dispensaries at risk, it puts their customers at risk with that much cash floating around."
Bangor Savings Bank also gave NEWS CENTER Maine a statement, saying the bank "recognizes that the cannabis industry is a complex area for financial service institutions and its vendor partnerships. As more information is made available from Mastercard, we will better understand how this decision may or may not impact the bank's customers."
Paige says other paths are open down the road. If passed, acts like the Safe Banking Act would allow local banks to do business with cannabis stores in states where it is legal.
"We could go ahead and do things like start making loans to cannabis-related businesses," Paige added.
Others say with the industry already being a cash-forward model, retail workers are disappointed but not phased by the change up... and are already looking to new options like ACH processing.
"Really wasn't surprised... a little disappointed," Retail manager of Seaweed Co. Emily Hyman said. "We hope that soon they will realize that this is a legal industry, we're operating legally within the state limits and hopefully they'll be able to work with us sooner than later."