Mastercard has instructed financial institutions to stop processing marijuana transactions on its debit cards, dealing a setback to the cannabis industry in the United States. Since marijuana remains illegal at the federal level, most banks in the country do not provide services to cannabis companies, making it challenging for them to access the financial system.
A spokesperson for Mastercard stated that the company quickly investigated the matter and, in accordance with its policies, directed financial institutions offering payment services to cannabis merchants to terminate their activity. The spokesperson emphasized that cannabis sales are considered illegal by the federal government, hence not allowed on their systems.
This decision has been met with disappointment from individuals within the cannabis industry, with Brady Cobb, CEO of Sunburn Cannabis, calling it “another blow” to the state-legal cannabis industry and consumers seeking access to legal marijuana products.
Advocates for the cannabis industry continue to push for reform, including the passing of the SAFE Banking Act, which would facilitate the industry’s access to banking services. However, political challenges remain, as some politicians, like Republican Senator John Cornyn, have expressed skepticism regarding the likelihood of passing such legislation.
Mastercard’s decision is seen as a significant setback for the cannabis industry, further underscoring the challenges it faces in navigating the financial system due to the federal illegality of marijuana, despite its legalization in various states for medicinal and recreational purposes.