Mastercard Cracks Down: No Highs with Debit Buys for Legal Cannabis Shoppers!

Mastercard has recently taken action to prevent US customers from using its debit cards to purchase legal marijuana in shops. The decision comes as a result of the federal-level illegality of marijuana in the United States, which has led to customers in the 38 states where it is permitted to face the inconvenience of having to pay with cash.

The company's move was prompted by the discovery that certain shops were accepting debit payments despite the federal ban. Consequently, Mastercard swiftly conducted an investigation and adhered to its policies by instructing financial institutions providing payment services to cannabis merchants to cease such activities.

In its statement released on Wednesday, Mastercard clarified that since the federal government deems cannabis sales illegal, it is not permissible for such purchases to be processed through their systems. As part of their crackdown, Mastercard aims to eliminate the option for marijuana dispensaries to offer debit card payments where customers enter their account's PIN number.

While medical use of marijuana is legal in 38 states, 23 states, including Washington DC and the entire US West Coast, have legalized its recreational use for adults over 21 years old. In Canada, where cannabis was nationally legalized in 2018, customers are often allowed to make payments using credit or debit cards.

The decision by Mastercard has drawn criticism from some, such as Sunburn Cannabis CEO Brady Cobb, who sees it as a setback for the state-legal cannabis industry and consumers seeking access to legal cannabis products.

On the political front, the Democrat-controlled US Senate is aiming to pass a law that would facilitate interactions between cannabis businesses and financial institutions, potentially easing the challenges faced by the legal cannabis industry.