Mastercard Inc (NYSE:MA) has told financial payments companies to stop allowing US customers to use its debit cards to buy marijuana.
The payment solutions company said some stores continued to accept debit payments despite a federal ban. While marijuana is legal for medical use in 38 US states, and for adult recreational use in 23 states, the federal government considers cannabis sales illegal.
"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 on Wednesday.
Reuters cited Sunburn Cannabis CEO Brady Cobb saying in a statement that "this move is another blow to the state-legal cannabis industry and patients/consumers who want to access this budding category”.
Pot firm Verano president Darren Weiss told Reuters: "We will continue to advocate for cannabis reform in Washington through further dialogue with elected officials and stakeholders to advance conversations supporting the growth of safe, legal cannabis across the US.”
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