PURCHASE, N.Y.— Mastercard has told financial institutions it will no longer process payments for purchases made in U.S. cannabis businesses, even though a state may have legalized such sales.
Mastercard said its policy is based on the fact cannabis sales remain illegal under federal law. Mastercard said the move comes after it found some shops accepted debit payments despite the federal ban.
"As we were made aware of this matter, we quickly investigated it. In accordance with our policies, we instructed the financial institutions that offer payment services to cannabis merchants and connects them to Mastercard to terminate the activity," Mastercard said in a statement. “The federal government considers cannabis sales illegal, so these purchases are not allowed on our systems.”
Marijuana is currently legal for medical use in 38 states. It is also legal for adults over 21 years old to buy for recreational use in 23 states, including Washington, D.C., and the entire U.S. West Coast.
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