Imagine walking into your office one morning and finding out that your credit card services have been terminated overnight. They certainly were take off not for lack of payment and not for being involved in an illegal business, but instead they were take off for indeterminate “unacceptable business practices.” This can be a reality facing many owners of medical marijuana dispensaries who get “creative” making use of 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 simply happened recently to Alternative Medical Choice, Inc., a consultation service located in Oregon. What does AMC do that got them in some trouble making use of their supplier Intuit? AMC is a small business which provides consultations with doctors for the approval of medical cannabis use under Oregon law. Even though the clinic doesn’t dispense or distribute medical cannabis, it’s lost its services.
Intuit states that they terminated services because AMC did not reveal its involvement with medical marijuana. 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 the web pages. Jungle Boys marijuana AMC offered to eliminate the reference, but Intuit won’t reestablish the account because “now we know.”
PayPal, the online payment service, has also terminated accounts connected with medical marijuana consultation references.
DEA, FDA, IOM and Other Alphabet Soup
Part of the problem businesses face stems from the question of whether or not marijuana is in fact 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 agree that smoking isn’t a maximum manner in which to gain any benefits, should they exist. Alternate methods of ingestion are now being investigated.
Even the large Institute of Medicine study frequently cited by proponents of medicinal marijuana actually opposes the utilization of smoked marijuana for medical benefits. The study found that there have been some “potentially therapeutic” benefits to cannabinoid drugs, primarily THC, but that other available medications offered better results. The lack of standardization, the technique of dosage and other factors all result in the IOM rejecting the idea of more studies.
Where Do We Go Next?
The same as a great many other hot potatoes, few people want to take care of this one. For those who have opened dispensaries, the challenges involved in obtaining traditional financing, accounts and services have sometimes become overwhelming. For other individuals who remain in the commercial, alternatives are available.
While selling cannabis online remains illegal, the Internet is a great place to look for companies willing and even wanting to enter the market. By searching designed for merchant account providers familiar with the risks involved in legal medical marijuana sales, entrepreneurs will get the services they might 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 matter can come to a mind soon. Some states, such as for example California, are planning to charge dispensaries sales tax on all of their transactions – leaving such a cash cow alone when state coffers are stripped bare is unimaginable. The question remains: how will the federal government react to the move?
Could it be About Money or Perception?
It is straightforward to assume the us government moving in either direction.
Cannabis remains illegal in all of the world, and possession is known as a capital offense in several countries. The US government is unlikely to want global opinion to be so effected. On one other hand, the taxes supplied by legalizing a currently flourishing industry could reach $2-6 billion.
Unfortunately for merchants, there is no conclusive argument at this time. Obtaining business services will remain difficult and sudden terminations likely until all government agencies, state, local and federal are on a single page.