Cal-Bay International is developing a specialized prepaid and loyalty card for licensed marijuana dispensaries.
The CB Green Card, available in August, will facilitate purchases of medical and recreational marijuana from licensed dispensaries. It will also provide an electronic payment method for a market that primarily deals in cash because some of the major banks and card networks either block marijuana sales or are awaiting more guidance on its legality.
Many companies have launched products designed to facilitate noncash payments for legal marijuana. Cashless ATMs, for example, allow patrons to swipe a debit or credit card for the sale amount, and the transaction is treated as a cash withdrawal or a cash advance.
The electronic cards will operate on Cal-Bay's payment processing terminal. The platform will process CB Green Card purchases and allow dispensaries to document their transactions for state-tax and compliance purposes.
"I firmly believe we have found a legitimate solution on a 'state by state' basis for the reporting and accountability to the tax collectors and at the same time introduced a simplified cashless alternative to the dispensaries' customers," says Robert Thompson, Cal-Bay CEO, in a May 13 press release.
Cal-Bay, of Denver, did not disclose the name of the U.S.-based merchant processing company it has partnered with to develop the card.