Credit card transactions canceled at California medical pot dispensaries

By Chris Roberts, NBCBayArea.com

SAN FRANCISCO — Credit cards are no longer being accepted at California medical  marijuana dispensaries — thanks to pressure from the federal government.

Someone — likely the Treasury Department — has informed  credit card companies that they must no longer process credit card transactions  involving medical marijuana, according  to SF Weekly.

The credit card companies informed merchant services providers,  who were warned that if they processed medical marijuana sales, they’d lose  their relationships with Visa/Mastercard “forever” or face heavy fines,  according to Stephen DeAngelo of Oakland’s Harborside Health Center, the Bay  Area’s biggest dispensary.

See the story at NBCBayArea.com

It’s merchant services providers who process credit card  transactions between retailers and the banks and credit card companies, DeAngelo  said. Merchant services providers informed dispensary clients that their  accounts would be closed as of July 1, the newspaper reported.

California cities back at federal crackdown on medical marijuana

Dispensaries have gone cash-only or installed ATM machines,  though some do accept debit cards, the newspaper reported.

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