How Did We Get Here?
As of the November 2018 midterm election, ten states and the District of Columbia have legalized marijuana recreationally while a total of thirty-three states allow cannabis consumption on a medical basis. Clearly, marijuana has been a hit with the states.
While cannabis is booming state-wide, federal policies have yet to catch up with the times. This federal illegality creates a massive problem for cannabis payment because credit cards, ACH transactions, and debit cards are all processed through federally-regulated banks. Unfortunately, this means that traditional means of payment (aside from cash) cannot be used legally in cannabis. While debit card machines have become increasingly common in dispensaries, these are almost exclusively noncompliant Point of Banking Solutions (see Point of Banking Solutions below).