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Table of Contents

Lead Story

Getting a handle on interchange - Part 1

Patti Murphy and Dale S. Laszig

News

Industry Update

News Briefs

Features

Phone-number-change fraud on the rise

Views

Getting serious about fighting fraud

Patti Murphy
ProScribes Inc.

Trends to note in a time of rapid change

Brandes Elitch
CrossCheck Inc.

Making ETA Transact worth it for MLSs

Steven Feldshuh
Merchants

Education

Street SmartsSM:
Successfully recruiting experienced agents

Aaron Nasseh
Finical Inc.

Summer days drifting away to ... FAFSA forms?

Don Bush
Kount Inc.

Cyber-security for ISOs: The crossroads of law and security

Adam Atlas
Attorney at Law

Company Profile

Veratad Technologies LLC

New Products

Portable, cloud-based business management

Clover Flex
First Data Corp.

Virtual assistant uses AI for lead management, optimization

A.I. Assist
A.I. Assist

Inspiration

Making use of personality types

Departments

Letter from the editors

Readers Speak

Resource Guide

Datebook

A Bigger Thing

The Green Sheet Online Edition

July 10, 2017  •  Issue 17:07:01

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Readers Speak

What about cannabis payments?

At an industry tradeshow last year, I met some folks who were excited about payments in the marijuana industry. They said they'd formed an ISO and wanted to serve that industry to the exclusion of other verticals. They didn't have any accounts, but said they'd been building relationships with marijuana growers and sellers. They stressed that more states would be legalizing cannabis, and that the federal government was bound to go along eventually. They wanted to get in on the ground floor. Some pretty savvy people at the show overheard their remarks and told me it was absurd to focus on that industry because no banks would agree to process marijuana payments. They would be risking too much because the federal government could shut them down. So is there any real opportunity here?

Geoff Slotter,Merchant Level Salesperson

Geoff,

Because marijuana remains illegal under federal law, when it comes to banking, it doesn't matter whether individual states have legalized marijuana for recreational and/or medicinal purposes: banks would be breaking the law if they were to process payments for marijuana-related enterprises. While laws are subject to change, at this point, there is no money to be made by processing traditional credit and debit card payments for the marijuana industry, because it can't be done.

However, people continue to explore possible alternatives. Recently, for example, SinglePoint Inc. and First Bitcoin Capital Corp. formed a joint venture to develop and distribute a viable payment solution using blockchain technology that can be used by the marijuana industry. SinglePoint President and Chief Executive Officer Greg Lambrecht said, "This Joint Venture with First Bitcoin Capital is perfect timing. Bitcoin payments are catching on and cannabis dispensaries need a solution fast." Whether this will represent an opportunity for ISOs is not apparent.

For now, it seems to make sense to keep an eye on the marijuana industry if it interests you but to not exclude other industries with more immediate potential.

Editor

Do you work with or know anyone providing lawful payment services to the cannabis industry? If so, do let us know how it is being done. We'll also appreciate your thoughts on other payments issues and trends at greensheet@greensheet.com, as well as welcome your news at press@greensheet.com.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

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Spotlight Innovators:

North American Bancard | USAePay | Impact Paysystems | Electronic Merchant Systems