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Instabill Offers Cashless ATMs to Medical Marijuana Merchants
As Instabill copywriters blogged last week, banks can decide on a moment’s notice not to process credit card transactions for any industry, for any reason at any time. Last week, Meta Payment Systems, a subsidiary of MetaBank, shut down its ATMs in hundreds of marijuana dispensaries in Colorado and Washington. To medical marijuana merchants affected by the shutdown, Instabill is offering cashless ATMs and 48-hour approvals to licensed merchants.
ATMs in Colorado, Washington Shut DownLast week, hundreds of cashless and cash-dispensing ATMs in licensed marijuana dispensaries in Colorado and Washington were disengaged by MetaBank, which had served a warning to merchants in January stating any ATMs located in marijuana dispensaries would be shut down. Despite the legalization of marijuana in Colorado and Washington, MetaBank chose to take the federal government’s stance on medical marijuana: Its growth, sale and use remains illegal under federal law. By and large, however, federal law enforcement officials have counted upon each state to govern itself. The shutdown left many merchants scrambling to find new ATMs, both traditional and cashless. Since the medical marijuana business is predominantly a cash business, ATMs in dispensaries are necessities while cashless ones are luxuries.
How Does a Cashless ATM Work?A cashless ATM allows users to be charged for a transaction directly through a credit or debit card with a PIN instead of a signature. The terminal prints two receipts for the desired amount, one as a record for the customer, the other for the merchant in place of cash. The merchant then returns whatever change to the customer in cash, while the payment is placed into the merchant’s account via ACH. Cashless ATMs eliminate the handling of large amounts of cash by medical marijuana merchants.
More States to Vote on Medical Marijuana Next WeekMore states could follow Colorado and Washington in legalizing recreational marijuana use. Alaska, Oregon and Washington, D.C., each have recreational-use questions on their ballots for this week’s vote. Instabill merchant account managers can be reached at 1-800-318-2713 or by live chat below to personally answer any inquiries about medical marijuana merchant accounts.
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