Whether you regularly buy cannabis edibles or try tinctures, it seems like weed is everywhere now. According to the Pew Research Center, 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.
However, there is one catch you should know before you head to the dispensary: Depending on your state and credit card provider, you probably won’t be able to buy weed with a credit card.
The cannabis dilemma: differences between federal and state governments
Despite its prevalence and popularity, marijuana is still classified as a Schedule I controlled substance under the Controlled Substances Act (CSA). This means that federal law prohibits the manufacture, distribution, dispensing and possession of marijuana outside of federally approved research studies.
This law may surprise you if dispensaries have already opened in your area. Many states violate the CSA by passing laws allowing the legal use of marijuana for recreational or medical purposes. In fact, as of May 2024, 38 states, the District of Columbia, Guam, Puerto Rico, and the U.S. Virgin Islands have passed laws allowing medical marijuana.
These laws eliminated state penalties for growing, selling, or possessing marijuana under licensed circumstances, leading to a boom in dispensaries. By 2024, nearly 15,000 dispensaries are in operation nationwide.
But these dispensaries face a problem: credit cards are often the preferred payment method for consumers. However, due to federal laws, financial institutions are cautious about allowing marijuana transactions. If they allow cannabis purchases, they could face significant penalties and other legal consequences.
Major credit card companies such as Visa and Mastercard prohibit the use of their cards to purchase marijuana. Both companies prohibit transactions involving marijuana, making it impossible to use the card to purchase cannabis at a dispensary.
Can you use a credit card in a pharmacy?
When you go to a pharmacy, cash is still king. Many pharmacies only accept cash because debit and credit card providers’ regulations are so strict. However, this is a problem for pharmacies; with so much cash on hand, they are a frequent target for theft. Additionally, consumers largely prefer cashless payments such as debit or credit cards.
If you rarely carry cash, there may be some workarounds that allow you to pay for weed with a debit or credit card.
Cashless ATM
Some pharmacies circumvented the rules of debit and credit card networks by using cashless ATMs, also called point-of-banking (POB) systems. With a cashless ATM, the clerk rounds up the total amount of the purchase and gives the customer the difference in cash. This way, the transaction appears as an ATM withdrawal or cash advance rather than a purchase at the pharmacy.
However, this method is not reliable as the networks have started to crack down on pharmacies that use this method. In addition, this process often involves additional transaction fees or processing fees, so your purchase can become more expensive.
Automated Clearing House (ACH) providers
There are dedicated ACH provider apps that have popped up to solve the cannabis industry’s problem. These apps, like Aeropay, CanPay, and Dual Payments, work like PayPal or Venmo and allow customers to pay for their dispensary purchases through the app using a credit or debit card.
These platforms are more convenient than some other options, but they usually come with additional processing fees.
Special cards
Some smaller banks and credit unions have developed their own credit cards that can be used at pharmacies. For example, the Columbia National Credit Card can be used at Columbia Care pharmacies. It operates outside of Visa or Mastercard and is therefore not subject to the rules or policies of those networks.
These cards typically require a credit check, so if you apply for one, it will affect your credit score. However, the cards have very limited uses. These cards can usually only be used at a specific pharmacy chain in specific locations, so if you don’t have a regular pharmacy, they may not be a solution.
Read more: Our selection of the best credit cards
Will you be able to buy weed with a credit card in the future?
Although it’s difficult to buy weed from dispensaries with a credit card today, that could change in the future. Senator Jeff Merkley, a Democrat from Oregon, has sponsored the Secure and Fair Enforcement Regulation (SAFER) Banking Act, which would provide protections for federally regulated financial institutions.
The SAFER Act would eliminate penalties for providing banking services to marijuana businesses operating legally in the states. And proceeds from transactions completed at dispensaries – including purchases made with credit cards – would no longer be considered illegal activities. If passed, the SAFER Act would make it easier for dispensaries to accept credit card or digital payments.
The SAFER Banking Act has broad support, with the American Bankers Association and the National Conference of State Legislatures writing letters in support of the bill.
As public opinion continues to shift toward marijuana legalization, it is likely that the federal government will eventually reclassify marijuana so that credit card purchases will be possible in the future.
Read more: What the reclassification of marijuana means for the US cannabis industry
This article was edited by Alicia Hahn
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