Mastercard halts cannabis transactions on debit cards
On July 26, 2023, Mastercard notified U.S. financial institutions to halt marijuana transactions on its debit cards. This decision to ban cannabis purchases is another jab to the industry.
Cannabis businesses continue to struggle financially, and the Secure and Fair Enforcement (SAFE) Banking Act could potentially provide solutions, but it hasn’t been able to pass the Senate as of yet.
“As we were made aware of this matter, we quickly investigated it. In accordance with our policies, we instructed the financial institutions that offer payment services to cannabis merchants and connects them to Mastercard to terminate the activity,” a spokesperson for the Mastercard said on July 26. “The federal government considers cannabis sales illegal, so these purchases are not allowed on our systems.”