Wa Marijuana Retailers Return to Cash as Banks Withdraw Payment Services

If you purchase marijuana from a retail store in Washington State most of the time you'll have to pay with cash.

CASHLESS ATM TRANSACTIONS

For the last several years you've also been able to use your debit card but that's no longer the case as federal officials have started a major crackdown on debit card use at the stores. According to the website Cannabis Business Solutions the stores were using a system called "cashless ATM" that looked like ATM withdrawals.

SO WHAT'S GOING ON?

It's against federal law despite recent action by President Donald Trump. In December of last year the president signed an executive order directing the Attorney General to reclassify marijuana from a Schedule I to a Schedule III drug under the Controlled Substances Act.

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TIME TO GRAB SOME CASH BEFORE YOU BUY

The federal government’s action marked a major shift by recognizing marijuana’s medical uses, but it did not legalize it nationwide. As a result, using debit cards at retail stores remains illegal. Earlier this month, over 1,000 Washington dispensaries, including some in Yakima, experienced debit payment shutdowns.

BANKS PROTECTING THEMSELVES FROM FINE OR ENFORCEMENT

The reason? Banks supporting cannabis payment processors have pulled their services, citing "risk management" concerns. Many have frozen or closed accounts to avoid potential fines or legal issues.
Is this permanent? Industry experts say no. They believe it’s a temporary outage, and services will likely resume soon. Cannabis retailers are working with banks to find solutions. Until then, customers must pay with cash or use in-store ATMs.