Visa wrote to banks and other financial institutions on December 2, cautioning that it was aware of a “scheme” where cashless ATMs are purposely miscoded to conceal the real nature of the payment.
More specifically, cashless ATMs used for cannabis transactions are misrepresented as ATM cash withdrawals. “They are called ‘cashless’ since the cardowner receives goods rather than money,” noted Akerna, a Denver-based cannabis tech business, in a press statement.
Visa cautioned that those found out of compliance would face undefined punishments and fines.
Though the card company did not mention the cannabis sector in its letter, industry insiders saw it as a caution that Visa is looking into the ATMs used at marijuana stores across the country.
Akerna believes that 50 percent of all marijuana outlets in the United States have cashless ATMs— that adds to thousands of merchants.
According to MJBizFactbook, there are about 8,800 cannabis retail outlets … Read More... Read More