Mastercard has told financial institutions to stop allowing marijuana transactions on its debit cards, dealing a blow to an industry already on the fringes of the financial system in the United States.
These aren’t credit cards, but debit cards. It’s access to money you have already earned, is in the bank, you own, and Mastercard is saying you can’t spend it on a particular thing. You get around this by doing an ATM cash withdrawal, but it’s still an extra step, and it’s still a megacorp restricting your access to something that the law does not.
Bold move to assume they’ll take cash. Many places gave up on cash during the pandemic and many of those haven’t gone back to taking cash.
I used to hate the “convince” fee companies charged for using a credit card, but when it’s reframed as a cash discount, it’s not as aggravating.
That said, plenty of places are electronic payment only these days. Scary times, given the payment processor monopoly and their ability to determine what you can and can’t buy.
It’s access to money you have already earned, is in the bank, you own, and Mastercard is saying you can’t spend it on a particular thing.
Strictly speaking, they’re saying that they won’t facilitate the transaction themselves, presumably because they’re concerned about legal exposure from processing transactions for goods that are illegal under federal law. State law may not be restricting your access, but federal still is, at least on paper, even if it’s largely de facto unenforced.
Mastercard makes money every time you swipe a card. They’re not going to cut off their own income unless they think the cost of not doing doing so is higher, such as legal exposure.
I agree that I don’t love how much control a few private companies have over the financial system, but at least with this case, I think the real issue is Congress for not getting around to legalizing Marijuana.
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These aren’t credit cards, but debit cards. It’s access to money you have already earned, is in the bank, you own, and Mastercard is saying you can’t spend it on a particular thing. You get around this by doing an ATM cash withdrawal, but it’s still an extra step, and it’s still a megacorp restricting your access to something that the law does not.
And you’ll have to pay the atm fee as a punishment for using cash
Bold move to assume they’ll take cash. Many places gave up on cash during the pandemic and many of those haven’t gone back to taking cash.
I used to hate the “convince” fee companies charged for using a credit card, but when it’s reframed as a cash discount, it’s not as aggravating.
That said, plenty of places are electronic payment only these days. Scary times, given the payment processor monopoly and their ability to determine what you can and can’t buy.
All dispensaries around my area take cash. There’s a couple of them that are cash only
I was amazed the first time I found one that took plastic.
If payment processers are blocking these payments, then yes, dispensaries will start accepting cash. They’d be suicidal not to.
Strictly speaking, they’re saying that they won’t facilitate the transaction themselves, presumably because they’re concerned about legal exposure from processing transactions for goods that are illegal under federal law. State law may not be restricting your access, but federal still is, at least on paper, even if it’s largely de facto unenforced.
Mastercard makes money every time you swipe a card. They’re not going to cut off their own income unless they think the cost of not doing doing so is higher, such as legal exposure.
I agree that I don’t love how much control a few private companies have over the financial system, but at least with this case, I think the real issue is Congress for not getting around to legalizing Marijuana.
Usually (in my experience) the weed store just has an ATM in it, or the POS system is technically an ATM
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