Mastercard blocks debit card purchases of «legal» cannabis in the U.S.

Mastercard, the payment processing company, has asked U.S. financial institutions to no longer allow cannabis-related transactions on its debit cards, due to the illegal status of cannabis at federal level in the United States.

This decision was taken following the discovery that some stores were still accepting debit card payments despite the federal ban.

In response, Mastercard quickly launched an investigation and asked financial institutions providing payment services to cannabis merchants to stop these transactions.

This measure specifically targets cannabis businesses, particularly dispensaries, to prevent them from offering debit card payment options that require customers to enter their account PIN. While 38 US states authorize the medical use of cannabis and 23 states allow recreational use for adults over 21, Mastercard's decision could have implications for the legal cannabis industry and for consumers looking for convenient payment methods.

Unlike the United States, where legal cannabis transactions are mainly conducted in cash, Canada, which has legalized cannabis nationwide in 2018, The company often allows customers to use credit or debit cards for cannabis purchases.

This financial restriction highlights the legal and financial ambiguity of the cannabis industry, even as more and more US states legalize the use of the plant. Many major banks and credit card companies have typically refrain from facilitating cannabis purchases due to federal cannabis laws, leaving buyers in legal states with limited payment options.

Legislative efforts are currently underway to allow cashless transactions in dispensaries, with supporters arguing that operating a business solely with cash encourages potential theft and puts employees at risk.

The Democrat-controlled U.S. Senate intends to adopt the SAFE Banking Act, which aims to protect banks and their employees from punishment when serving legal cannabis businesses in the state. However, even after 8 attempts at passage, the law could still fail to pass.