FOR IMMEDIATE RELEASE
CannDelta Responds to Mastercard’s Recent Restrictions on Dispensary Transactions
NEW YORK, NY – July 27th 2023 – CannDelta, a leading cannabis regulatory consultant, today issued a statement responding to the recent decision by Mastercard to restrict its debit product for cannabis dispensary transactions and the excessive fees it charges in jurisdictions legal federal jurisdictions.
The unexpected development has prompted concerns over the financial institution’s fair practices and regulatory power within the banking sector. The impact of these changes are a setback for cannabis retailers and customers, highlighting the urgent need for regulatory clarity and reform in the financial transactions related to the cannabis industry.
“CannDelta acknowledges the complexities that financial institutions must navigate given the current landscape where state and federal laws often conflict. However, the imbalanced fees being imposed on cannabis retailers by Mastercard, particularly in Canada, suggest an uneven playing field that puts undue pressure on businesses in this sector,” said Lucas McCann, CSO of CannDelta.
We understand the complexities that financial institutions face in navigating the cannabis landscape (such as INTERNAL REVENUE CODE SECTION 280E), where state laws often conflict with federal legislation. We believe that access to secure and dependable financial services is crucial for the growth and maturation of the cannabis industry. Without it, businesses face potential safety risks, hindered growth, and inefficiencies due to being largely cash-operated.
This decision underscores the urgent need for a legislative solution, such as the Secure and Fair Enforcement (SAFE) Banking Act. This long-awaited legislation, currently awaiting passage in Congress, would provide cannabis businesses access to essential banking services. It would also pave the way for financial institutions to service cannabis-related businesses without the fear of federal reprisal, promoting greater financial transparency and public safety.
CannDelta’s position is that we strongly advocate for the SAFE Banking Act’s passage, recognizing that it will not only ease operational complexities for businesses in the sector but also contribute significantly to the industry’s economic impact and development. We urge Congress to expedite its passage for the sake of both the cannabis industry and the customers it serves.
CannDelta remains committed to providing our clients with timely updates and strategic solutions to mitigate the impact of these regulatory changes. We encourage all stakeholders in the cannabis industry to engage in constructive dialogue with lawmakers and financial institutions, advocating for the necessity and benefits of the SAFE Banking Act.
For more information about CannDelta and its services, visit www.canndelta.com.
CannDelta is a leading cannabis regulatory consulting company, offering strategic insights and guidance to clients navigating the dynamic and complex cannabis landscape. Committed to the success and growth of its clients, CannDelta continues to provide innovative solutions to overcome regulatory and operational challenges in the cannabis industry.
Lucas McCann, CSO