CS Compliance Systems ran into trouble this month over its ability to accept credits, even though the Denver-based consulting and technology firm doesnt sell marijuana.
Merely working with cannabis dispensaries was enough for CS Compliance Systems to have its credit card processing privileges revoked by the merchant service provider its working with, operations manager Ryan Lewis said.
Its huge bump in the road for growing the small company, Lewis said.
This situation is also a reminder of the strange financial spot the marijuana industry is currently in with banks and other companies that are hesitant to work with dispensaries and other marijuana-related businesses without a green light from the federal government.
The frustrating thing is we dont have anything to do with selling cannabis. If anything, were helping people follow the federal rules, but were being punished the same as they are, Lewis said.
CS Compliance Systems planned to start accepting credit cards from dispensaries in Colorado and Oregon this month in exchange for use of its CannaScore software application. The application helps cannabis dispensaries follow government regulations by providing them with a score for how theyre doing.
The company was already offering the service to cannabis consultants in exchange for cash or checks, Lewis said. Because CS Compliance Systems, cant take credit from dispensaries, the company is temporarily offering a limited version of CannaScore for free.
Lewis declined to provide the name of the company that CS Compliance Systems was working with but said it is similar to, but not necessarily, Paypal. CannaScore manager Tom Smith said hes cautiously optimistic that CS Compliance Systems can work with the merchant service provider to resolve the situation.
News Moderator: Katelyn Baker
Full Article: Denver Marijuana Company CS Compliance Systems Runs Into Trouble With Credit Cards
Author: Adrian D. Garcia
Photo Credit: Kevin J. Beaty