DENVER — Mastercard moved last week to stop its debit cards being used to purchase cannabis products in what could be another blow to Colorado marijuana businesses that were already experiencing a drop in sales.
Because marijuana is illegal under federal law, many banks don't provide services to marijuana businesses, even in states like Colorado where it's legal. Mastercard said in a statement that because "the federal government considers cannabis sales illegal, so these purchases are not allowed on our systems."
The company said, "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. Our rules require our customers to conduct lawful activity where they are licensed to use our brands."
Marijuana Industry Group board chair Tiffany Goldman said in a statement Monday that Mastercard's move is "another example of how dated and draconian federal policies are hurting Colorado cannabis small business owners."
"Our state's industry is already experiencing reduced sales as other states legalize, staffing challenges, and increasing taxes and fees, and we honestly don't know how much more we can take," Goldman said.
In Colorado, marijuana sales have taken a downturn. Sales last year dropped $460 million compared to the previous year, according to the Marijuana Industry Group. A report from the City and County of Denver shows a 22% decline in annual marijuana sales revenue from 2021 to 2022 – the largest annual drop since legalization.
In April, people bought $131 million worth of weed. That’s down from $153 million from April of the year before. Sales haven’t been this low to celebrate 4/20 since 2018. The Marijuana Industry Group said that's not necessarily because people are buying less weed – they're just buying less of it legally.
"We need lawmakers at every level to start looking at streamlined, commonsense policies that are protective of public safety and allow business owners to keep their doors open," Goldman said in her statement.
Marijuana customers in Colorado do have one new payment option after Gov. Jared Polis signed into law House Bill 1279 that allows licensed retailers to accept payment online for the sale of retail marijuana products.
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