GRAND RAPIDS, Mich. — While recreational marijuana is legal in Michigan, it remains illegal at the federal level. That has caused confusion when it comes to how customers can pay for the product, and things are only getting more difficult.
According to Bloomberg, Mastercard will no longer allow its debit cards to be used to purchase marijuana.
Casey Kornoelje just wants his dispensary, Pharmhouse Wellness, to be treated like any other small business.
"I'm sure you've been to the supermarket, you pull out your credit card and you swipe it and away you go," says Kornoelje.
At dispensaries, that isn't possible. Customers largely have to pay in cash, with large credit unions following federal laws. Debit cards have been a loophole, but now Mastercard is shutting it down.
"They don't want to touch it, don't want it run through their merchant processing," says Kornoelje.
Mastercard is no longer will allow its credit or debit cards to be used at dispensaries.
"It gets to the root of a deeper issue that exists within the cannabis space, which is a lack of financial regulation and lack of, you know, access to these channels for payment processing," says Kornoelje.
He says Pharmhouse Wellness shouldn't be hit too hard by Mastercard, but still wishes customers could have a simpler experience.
"We're trying to grow our business and make things easy for the employees and also the customers," says Kornoelje.
He feels fortunate Pharmhouse Wellness won't be impacted, but knows other businesses may not be as lucky.
"It can be a big disruption to business and I feel their pain because I've been there before," says Kornoelje.
Back in April, the SAFE Banking Act was introduced to Congress, which if passed would protect federal banks from punishment for dealing with legal dispensaries.
Kornoelje hopes it gets bipartisan support.
"It's like two bald guys fighting over a comb," says Kornolje. "You know, I mean, I just don't know why they can't get it together and I hope that they will."
He also hopes the marijuana industry will soon be looked at as just another normal industry.
"There's 1,001 different minefields that you have to navigate with this business," says Kornoelje. "And every morning I wake up, and I'm kind of like, you know, potentially what shoe could drop today."
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