Cannabis dispensaries in the U.S. are returning to cash after a variety of ATM processors turned off “cashless ATMs.”
The stores had used the machines to allow customers to purchase cannabis with a bank card, but the technology made it appear like the withdrawals were happening from different locations, which circumnavigates money laundering controls, according to a Seattle Times report.
In particular, NCR Corp. turned off this cashless service. As a result, various dispensaries in Arizona, California and Massachusetts are recommending users switch to cash. It has been a difficult time for the industry, due to both slowing political momentum and concerns about the health risks of marijuana.
“It’s left merchants in the lurch because it happened overnight, but the writing has been on the wall for a while now,” Peter Su, a senior vice president at Green Check Verified, a consulting and software company that specializes in cannabis and banking, told the news outlet.
To address this issue, companies like Dutchie, a point-of-sale solutions provider, is working on a PIN debit solution to help businesses.
