Mastercard (NYSE:MA) is directing the banks and credit unions in its network to cease offering payment services to marijuana-related businesses in states where sales of medical and recreational cannabis products are legal.
“In accordance with our policies, we instructed the financial institutions that offer payments services to cannabis merchants and connects them to Mastercard to terminate the activity,” said the Purchase-headquartered company in a statement. “Our rules require our customers to conduct lawful activity where they are licensed to use our brands. The federal government considers cannabis sales illegal, so these purchases are not allowed on our systems.”
Senate Majority Leader Chuck Schumer (D-NY) has stated efforts to resolve the issue of banking access for marijuana-related business “has always been a priority for me” and claimed he was “making good progress” on moving the Secure and Fair Enforcement (SAFE) Banking Act through the Senate. However, Rep. Patrick McHenry (R-NC), chairman of the House Financial Services Committee, has stated that the issue is “not a priority for me.”
