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Can you buy weed with a credit card? It's complicated.

Yahoo Personal Finance· Getty Images
4 min read

Whether you regularly purchase cannabis edibles or dabble in tinctures, it feels like weed is everywhere now. About 75% of Americans live in a state where marijuana is legal for recreational or medical use, and 79% of Americans live in a county with at least one marijuana dispensary, according to Pew Research Center.

However, there’s a catch you should be aware of before heading to the dispensary: Depending on your state and credit card network, you likely can’t use a credit card to buy weed.

Despite its prevalence and popularity, marijuana is still labeled a Schedule I controlled substance under the Controlled Substances Act (CSA). That means federal law prohibits the manufacturing, distribution, dispensing, and possession of marijuana outside of federally approved research studies.

That law may come as a surprise if dispensaries have popped up in your area. Many states violate the CSA by instituting laws permitting the legal use of marijuana for recreational or medicinal purposes. In fact, as of May 2024, 38 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands have laws in place permitting medicinal marijuana.

These laws removed state penalties for growing, selling, or possessing marijuana in approved circumstances, causing dispensaries to flourish. As of 2024, there are nearly 15,000 dispensaries in operation nationwide.

However, these dispensaries face a conundrum: Credit cards are often consumers' payment method of choice. But thanks to federal laws, financial institutions are wary of allowing weed transactions. If they permitted the purchase of cannabis, they could be subject to significant penalties and other legal consequences.

Major credit card networks like Visa and Mastercard prohibit the use of their cards to buy weed. Both companies enforce bans on pot transactions, making it impossible to use your card at a dispensary to purchase cannabis.

When you go to a dispensary, cash is still king. Many dispensaries only accept physical cash because of how strict debit and credit providers are about regulations. However, that's a problem for dispensaries; with so much cash on hand, it makes them a common target of theft. Plus, consumers largely prefer cashless payments like debit or credit cards.

If you rarely carry cash, there may be some workarounds that would allow you to pay for weed with a debit or credit card.

Some dispensaries worked around debit and credit card networks' rules by using cashless ATMs, also known as point of banking (POB) systems. With a cashless ATM, the sales associate rounds up the purchase total, giving the difference to the customer in cash. That way, the transaction would appear as an ATM withdrawal or cash advance rather than a dispensary purchase.

However, this method isn't reliable, as networks have started to crack down on dispensaries that use it. The process also often comes with added transaction fees or convenience fees, so it can make your purchase more expensive.

There are specialty ACH provider apps that have popped up to address the issue affecting the cannabis industry. These apps, such as Aeropay, CanPay, and Dual Payments, function like PayPal or Venmo, and allow customers to pay for their dispensary purchases with a credit or debit card through the app.

These platforms are more convenient than some other options, but there are typically additional processing fees.

Some smaller banks and credit unions have created their own credit cards that can be used at dispensaries. For example, the Columbia National Credit card can be used at Columbia Care dispensaries. It operates outside of Visa or Mastercard, so isn't subject to the rules or guidelines of those networks.

These cards generally require a credit check, so applying for one would affect your credit score, but the cards have very limited use. These cards can usually only be used at a specific dispensary chain in limited locations, so they may not be a solution if you don't have a regular dispensary you use.

Read more: Our picks for the best credit cards

Although it's difficult to use a credit card to buy weed at dispensaries today, that may change in the future. Senator Jeff Merkley, a Democrat from Oregon, sponsored the Secure and Fair Enforcement Regulation (SAFER) Banking Act, which would provide protections for federally regulated financial institutions.

The SAFER Act would eliminate the penalties for providing banking services to marijuana businesses legally operating within states. And, proceeds from transactions completed at dispensaries — including purchases made with a credit card — would no longer be considered unlawful activity. If passed, the SAFER Act would make it easier for dispensaries to accept credit card or digital payments.

The SAFER Banking Act has substantial support; the American Bankers Association and the National Conference of State Legislatures have issued letters in support of the bill.

As public opinion continues to shift in favor of the legalization of weed, it's likely that the federal government will eventually reclassify marijuana, making it possible for credit cards to be used for purchases in the future.

Read more: What marijuana reclassification means for the US cannabis industry

This article was edited by Alicia Hahn

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