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There are IIRC two processors who will run those transactions. Was just discussing this with a colleague in the payments sector yesterday and we were going to f

There are IIRC two processors who will run those transactions. Was just discussing this with a colleague in the payments sector yesterday and we were going to finish the conversation today to learn more about where those funds go and how they are transferred. Lots of "clubs" sell memberships where the product is complimentary, you pay for the access to the "lounge" and premises. The big problem with most weed transactions is they can't be run through any org that is federally insured, which is why banks won't touch dispensary money.

pbhjpbhj 9y ago
Do I have this right: your State says your medicine is legal to buy, the Federal government says it's not illegal, but whoever controls "federal insurance" prevents normal use of the banking system for companies that are in the supply chain? Who decides on the rules for those using "federal insurance" and why do they override state law on what's legal to sell? Why can banks refuse your cash? Why do they?
- dragonwriter 9y ago
  > Do I have this right: your State says your medicine is legal to buy, the Federal government says it's not illegal No, the second half is wrong; the Feds say it is absolutely illegal, but also not a prosecution priority. Well, except the “not a prosecution priority” part just got a little less clear.
- chris11 9y ago
  > Federal government says it's not illegal Pot is still illegal at the federal level. Though the Obama-era DOJ deprioritized enforcement. Jeff Sessions just rescinded this policy. So I'd expect to see some new cases dealing with pot end up in federal court.
  - bluetwo 9y ago
    Yep. I expect this will happen quickly. Some people are going to wake up at the end of a gun and find out they are the lowest hanging fruit.
  - dragonwriter 9y ago
    > Though the Obama-era DOJ deprioritized enforcement. And Congress has, for several years, prohibited federal funds from being used to interfere with state medical marijuana implementation.
    - int_19h 9y ago
      This is still the case as of today - this protection has been extended to January, 18 when this last came up for vote. It'll likely get extended again. So if they start targeting places, it'll be recreational pot stores and farms that sell to them, not medical dispensaries.
- cosmie 9y ago
  As far as I understand, your state says it’s legal but the federal government says it’s illegal. However, there’s a standing directive from the Justice department that they won’t prosecute individuals complying with state laws (when those state laws legalize marijuana). So it’s still illegal at a federal level, but the department that would ostensibly enforce that simply let it be known that they would defer to state law and not prosecute when state law legalized it. But since it was never actually legalized at the federal level, it’s little more than a gentleman’s agreement (which could be pointed to as a valid defense if someone was prosecuted federally). But since the directive came from the executive branch, it can also revoke/revise that directive as it wants, and begin enforcing those federal laws regardless of state level legalization. Congress still has the power to pass actual laws that decriminalize it federally, but they’ve conveniently been spared from that politically charged topic by the Justice Department directive. Now they’ll be forced to address it. And with hundreds of millions of dollars in state tax revenue at stake, there will likely be more pressure to not white wash over it than their has been previously.
  - PhasmaFelis 9y ago
    > there’s a standing directive from the Justice department that they won’t prosecute individuals complying with state laws (when those state laws legalize marijuana). Until today. https://www.reuters.com/article/us-usa-justice-marijuana/trump-administration-drops-obama-era-easing-of-marijuana-prosecutions-idUSKBN1ET1MU https://www.reuters.com/article/us-usa-justice-marijuana/tru...
  - lutorm 9y ago
    it can also revoke/revise that directive as it wants Which Sessions just did.
    - dx034 9y ago
      Does that the DEA will start busting shops that are legal under state law?
      - dragonwriter 9y ago
- chrsstrm 9y ago
  Someone will be able to explain this better than I can right now but the short and dirty version is that actual banks in the US operate with authority given by the federal government. This relationship grants them perks like being able to operate across states lines, etc., but also FDIC protection which insures the deposits they hold for customers. Since marijuana is illegal at the federal level, banks cannot have customers who are in essence violating federal law. Allowing dispensaries to be customers opens the bank up to a level of risk they are not willing to bear. My comment referencing being "federally insured" is in reference to FDIC, which is the easiest way to tell whether or not a bank is regulated at the federal level. Many credit unions are in fact not "banks" in the traditional sense as they are not federally regulated and do not offer FDIC insured deposits (although IIRC there is another form of deposit insurance that is not federally backed). So again, the short version is your payment path in the marijuana industry cannot touch any corp that is federally regulated.
  - chiph 9y ago
    Credit Unions have their deposits insured via the NCUA. https://www.ncua.gov https://www.ncua.gov
- alphaalpha101 9y ago
  The United States federal government says that it's illegal. The [whatever state] state government doesn't say that it's illegal. So it's illegal. They're breaking US federal law. That's all there is to it. It might not be illegal according to the state law of whatever state you're in, but a state can't override US federal law. If it's illegal federally, then it's illegal in the entire United States of America.

pbhjpbhj 9y ago

Do I have this right: your State says your medicine is legal to buy, the Federal government says it's not illegal, but whoever controls "federal insurance" prevents normal use of the banking system for companies that are in the supply chain? Who decides on the rules for those using "federal insurance" and why do they override state law on what's legal to sell? Why can banks refuse your cash? Why do they?

dragonwriter 9y ago
> Do I have this right: your State says your medicine is legal to buy, the Federal government says it's not illegal No, the second half is wrong; the Feds say it is absolutely illegal, but also not a prosecution priority. Well, except the “not a prosecution priority” part just got a little less clear.
chris11 9y ago
> Federal government says it's not illegal Pot is still illegal at the federal level. Though the Obama-era DOJ deprioritized enforcement. Jeff Sessions just rescinded this policy. So I'd expect to see some new cases dealing with pot end up in federal court.
- bluetwo 9y ago
  Yep. I expect this will happen quickly. Some people are going to wake up at the end of a gun and find out they are the lowest hanging fruit.
- dragonwriter 9y ago
  > Though the Obama-era DOJ deprioritized enforcement. And Congress has, for several years, prohibited federal funds from being used to interfere with state medical marijuana implementation.
  - int_19h 9y ago
    This is still the case as of today - this protection has been extended to January, 18 when this last came up for vote. It'll likely get extended again. So if they start targeting places, it'll be recreational pot stores and farms that sell to them, not medical dispensaries.
cosmie 9y ago
As far as I understand, your state says it’s legal but the federal government says it’s illegal. However, there’s a standing directive from the Justice department that they won’t prosecute individuals complying with state laws (when those state laws legalize marijuana). So it’s still illegal at a federal level, but the department that would ostensibly enforce that simply let it be known that they would defer to state law and not prosecute when state law legalized it. But since it was never actually legalized at the federal level, it’s little more than a gentleman’s agreement (which could be pointed to as a valid defense if someone was prosecuted federally). But since the directive came from the executive branch, it can also revoke/revise that directive as it wants, and begin enforcing those federal laws regardless of state level legalization. Congress still has the power to pass actual laws that decriminalize it federally, but they’ve conveniently been spared from that politically charged topic by the Justice Department directive. Now they’ll be forced to address it. And with hundreds of millions of dollars in state tax revenue at stake, there will likely be more pressure to not white wash over it than their has been previously.
- PhasmaFelis 9y ago
  > there’s a standing directive from the Justice department that they won’t prosecute individuals complying with state laws (when those state laws legalize marijuana). Until today. https://www.reuters.com/article/us-usa-justice-marijuana/trump-administration-drops-obama-era-easing-of-marijuana-prosecutions-idUSKBN1ET1MU https://www.reuters.com/article/us-usa-justice-marijuana/tru...
- lutorm 9y ago
  it can also revoke/revise that directive as it wants Which Sessions just did.
  - dx034 9y ago
    Does that the DEA will start busting shops that are legal under state law?
    - dragonwriter 9y ago
chrsstrm 9y ago
Someone will be able to explain this better than I can right now but the short and dirty version is that actual banks in the US operate with authority given by the federal government. This relationship grants them perks like being able to operate across states lines, etc., but also FDIC protection which insures the deposits they hold for customers. Since marijuana is illegal at the federal level, banks cannot have customers who are in essence violating federal law. Allowing dispensaries to be customers opens the bank up to a level of risk they are not willing to bear. My comment referencing being "federally insured" is in reference to FDIC, which is the easiest way to tell whether or not a bank is regulated at the federal level. Many credit unions are in fact not "banks" in the traditional sense as they are not federally regulated and do not offer FDIC insured deposits (although IIRC there is another form of deposit insurance that is not federally backed). So again, the short version is your payment path in the marijuana industry cannot touch any corp that is federally regulated.
- chiph 9y ago
  Credit Unions have their deposits insured via the NCUA. https://www.ncua.gov https://www.ncua.gov
alphaalpha101 9y ago
The United States federal government says that it's illegal. The [whatever state] state government doesn't say that it's illegal. So it's illegal. They're breaking US federal law. That's all there is to it. It might not be illegal according to the state law of whatever state you're in, but a state can't override US federal law. If it's illegal federally, then it's illegal in the entire United States of America.