Imagine walking into your working environment one morning and discovering that the bank card services had been terminated overnight. They certainly were stop not for lack of payment and not for being involved in an illegal business, but rather they certainly were stop for indeterminate “unacceptable business practices.” This is a reality facing many owners of medical marijuana dispensaries who get “creative” with their applications; and in the event that you fabricated your application it can be a legitimate termination – but that isn’t always the case.
Left Without Service
The story above isn’t uncommon. It just happened recently to Alternative Medical Choice, Inc., a consultation service situated in Oregon. What does AMC do this got them in some trouble with their service provider Intuit? AMC is a business that offers consultations with doctors for the approval of medical cannabis use under Oregon law. Even though the clinic does not dispense or distribute medical cannabis, it has lost its services.
Intuit states they terminated services because AMC didn’t reveal its involvement with medical marijuana. TLC collective When further questioned about terminating some 3000 other accounts they hold with clinics offering the exact same services, they stated that they would not be terminating those accounts simply because they didn’t feature medical cannabis on their web pages. AMC offered to remove the reference, but Intuit won’t reestablish the account because “now we know.”
PayPal, the web payment service, in addition has terminated accounts related to medical marijuana consultation references.
DEA, FDA, IOM and Other Alphabet Soup
The main problem businesses face stems from the question of if marijuana is really medicinal. The DEA and the US government hold the career that smoking marijuana has no medical value. The American Cancer Society, the AMA and the AAP all concur that smoking is not an optimum way in which to achieve any benefits, if they exist. Alternate methods of ingestion are being investigated.
Even the large Institute of Medicine study frequently cited by proponents of medicinal marijuana actually opposes the use of smoked marijuana for medical benefits. The study unearthed that there were some “potentially therapeutic” benefits to cannabinoid drugs, primarily THC, but that other available medications offered better results. Having less standardization, the technique of dosage and other factors all lead to the IOM rejecting the idea of more studies.
Where Do We Go Next?
Exactly like many other hot potatoes, few people want to take care of this one. For individuals who have opened dispensaries, the challenges involved in obtaining traditional financing, accounts and services have sometimes become overwhelming. For others who remain available, alternatives are available.
While selling cannabis online remains illegal, the Internet is a good place to look for companies willing and even desperate to enter the market. By searching designed for merchant account providers knowledgeable about the risks involved in legal medical marijuana sales, entrepreneurs will get the services they require without obfuscation.
With 15 states and the District of Columbia already de-criminalizing the sale of marijuana products for medicinal purposes it is likely that the issue can come to a head soon. Some states, such as for instance California, are intending to charge dispensaries sales tax on all their transactions – leaving this type of cash cow alone when state coffers are stripped bare is unimaginable. The question remains: how will the us government react to the move?
Is it About Money or Perception?
It is straightforward to imagine the federal government moving in either direction.
Cannabis remains illegal in most of the world, and possession is known as a capital offense in many countries. The US government is unlikely to want global opinion to be so effected. On the other hand, the taxes supplied by legalizing a currently flourishing industry could reach $2-6 billion.
Unfortunately for merchants, there’s no conclusive argument as of this time. Obtaining business services will remain difficult and sudden terminations likely until all government agencies, state, local and federal are for a passing fancy page.