Navigating Cannabis Payments: Why Cash is Queen at Herb and Market

At Herb and Market, we strive to provide our customers with a seamless and convenient shopping experience. However, when it comes to payment methods, cash reigns supreme in the world of cannabis. While we do offer an old-fashioned ATM for your convenience, we want to shed light on why cash is the preferred option at our establishment. 

The primary reason for the prevalence of cash transactions in the cannabis industry stems from federal regulations. Despite the legalization of cannabis in various states, including California, it remains classified as a Schedule 1 controlled substance at the federal level. As a result, major credit card companies are prohibited from processing cannabis-related transactions using their cards. 

This limitation poses significant challenges for cannabis businesses like ours. Without access to traditional banking services, we are forced to rely on alternative payment

solutions. Some dispensaries may opt for third-party workarounds or “cashless ATM” systems to process transactions electronically. However, these solutions are often temporary and come with their own set of risks. 

One of the most significant risks associated with cashless payment systems is the potential for frozen or seized assets. Since cannabis remains illegal at the federal level, businesses operating in the industry are vulnerable to intervention from federal authorities. In the past, several cannabis businesses have faced asset seizures or account closures due to their involvement in digital payments. 

To mitigate these risks and ensure the safety and security of our customers and business, we have chosen to conduct transactions primarily in cash. While we understand that cash transactions may be less convenient for some, we believe it is the most prudent approach given the current regulatory landscape. 

Despite the challenges posed by limited access to banking services, the cannabis industry continues to survive. Many cannabis businesses, including ours, have forged partnerships with local credit unions to manage their finances. While these arrangements may come with additional fees and complexities, they allow us to continue serving our community and providing access to quality cannabis products. 

As advocates for the cannabis industry, we remain hopeful that federal regulations will evolve to provide greater clarity and support for businesses operating in this space. In the meantime, we appreciate your understanding and cooperation as we navigate the unique challenges of cannabis banking. 

So the next time you visit Herb and Market, remember that cash is queen when it comes to payments. We thank you for your support!