Welcome to B.I.G. News

Welcome to B.I.G. News

Intro. by Rhett Baylies, CM

It has been a BIG couple weeks in the political arena for the cannabis industry.? With an election year rapidly approaching the industry is buzzing with the potential of federal reform at any level, finally. One thing is certain, cannabis is sure to be one of the hot topics for the debate stage in the upcoming election.?

With the SAFER Banking Act closer to passing than ever along with the recommendation that cannabis be rescheduled, many business owners are wondering what it could mean for their business and the future of the industry.

Disecting what these movements actually mean for the industry has been the source of many colorful debates.? Let alone, if it will be a priority in the midst of a speaker change and looming government shut down.

Having just finished the PBC Conference, Benzinga Cannabis, and currently at Lucky Leaf St. Louis - the BIG team is staying in front of the rapidly changing landscape.? We will continue to support, focus on, and provide superior service to the industry while we all work together to normalize what it means to be a part of the business that is cannabis.?

Thank you again for reading our weekly newsletter where we will continue to look at these topics and others through the eyes and perspective of payments experts.

Sincerely,

Rhett Baylies, CMO?

This week we are proud to feature the Sapphire Risk Advisory Group. With decades of experience, Sapphire Risk is the most recognized and successful security consulting firm in the cannabis industry.

From application to operation the team at Sapphire Risk has the cannabis industry covered. ?With their extensive experience in analyzing criminal behavior and understanding the motives behind them, Sapphire Risk has acquired the necessary expertise to identify and mitigate security risks. They conduct a comprehensive review to safeguard businesses from both internal and external threats. Their ultimate goal is to provide a sustainable security strategy that adapts and evolves alongside a growing business.

Tony Gallo, the "OG of Cannabis Security" and Managing Partner, has been at the forefront of the cannabis industry since 2013. With an impressive track record of working with over 600 cannabis clients across 35 states and Canada, Tony is widely recognized as a leading authority in state/city application license processes, physical security build-outs, and standard operating procedures. He has been invited to speak at more than 100 cannabis business conferences throughout the United States, solidifying his reputation as a true expert in the field.

But Tony's expertise extends far beyond the cannabis industry. For over three decades, he has held senior executive positions in strategic and tactical security within the multi-unit retail industry.? Including work with companies such as Sears, Federated Department Stores, and EZCorp.? Tony's exceptional knowledge and insights have helped open over 1,000 high-risk businesses across the United States, Canada, and Mexico.

When it comes to security and safety, Tony Gallo and Sapphire Risk Group are the go-to experts.? Leverage their wealth of knowledge and experience to safeguard your business.

CHECK OUT THEIR WEBSITE


In the face of the federal ban on cannabis, businesses in the industry struggle to access banking and financial services, leading to a predominantly cash-based operation. This cash reliance poses risks such as burglaries and armed robberies, making dispensaries vulnerable targets for criminals. Financial institutions are hesitant to engage with cannabis cash due to traceability issues and regulatory reporting requirements.

To enhance industry safety, experts advocate reducing cash dependence by offering alternative payment options that align with financial institutions' compliance efforts. One solution is PIN Debit, which addresses several critical challenges:

  1. Enhanced Security and Reduced Costs: PIN Debit provides a secure and convenient payment method that can lower the risk of robberies and minimize expenses associated with handling cash. It creates a more streamlined checkout experience all while reducing operational costs.
  2. Improved Traceability: Electronic transactions through PIN Debit offer audit trails without disclosing sensitive information, aiding compliance efforts. It also supports compliance with bank regulations by providing transactional transparency for banks.
  3. Bank-Friendly Approach: Banks prefer electronic payments over large sums of cash, but they require robust compliance procedures for cannabis-related transactions. PIN Debit systems collaborate with financial institutions to ensure proper knowledge of transaction sources, supporting rigorous compliance efforts.

Moreover, PIN Debit prepares cannabis merchants for future credit card processing when federal regulations change, offering a seamless transition.

BIG's PIN Debit solutions prioritize compliance, transparency, and industry growth, aiming to bridge the gap between cannabis businesses and traditional financial systems. These efforts strive to establish legitimacy and equal access to banking services for the cannabis industry.

READ MORE


For the third week in a row and to no surprise it seems the #SAFERBanking has been a trending topic this week.??On the heals of the HHS recomendation that the DEA reschedule cannabis, it seems that our representatives have a little extra motivation to finally do something with the SAFER Banking Act.

Is the SAFER Banking Act safe enough to open up credit card payments??

While there is certain language that references cannabis transactions, there is no clear path (at least right now) that clearly opens flood gates to provide the ability for the card brands to facilitate cannabis credit card transactions.? I will leave that one up to their lawyers.

I do fear that if/when SAFER is passed that there will be a misconcenption in the industry that credit card processing is instantly available.? This will feed misinformation and lead to solutions that are not sustainable, again.?

With Cannabis still considered federally illegal there does not seem to be a clear path for the major card brands to feel comfortable in faciliting the purchases.

In the meantime, regarless of what other providers say, accepting credit cards for cannabis remains unatainable in a transparent environment.? The facts remain the same (for now):

  • Cannabis is a prohibited product on all card brand rails.
  • There is NO WAY to accept a credit card payment without using their rails.
  • Which means that no sponsor bank can fund those transactions knowingly.
  • So, if a credit card transaction for cannabis is processed and funded - then the processor and sponsor bank have been mislead which is bank fraud and money laundering.

BIG President, Joseph Zahaitis & Kaliko Castille of the MCBA Discussed SAFER Live this week on LinkedIn:

In our weekly "Office Hours" live on LinkedIn Joe and Kaliko discussed SAFER.? If you missed it you can check it out on LinkedIn by clicking here BIG Office Hours.


  • September 21-22 in Washington DC for the PBC Conference.? Join us as we sponsor the Day 1 Happy Hour.? Want to be on our Podcast?? You can get your minutes of fame there too!
  • October 6-7 in St. Louis, MO for the Lucky Leaf Expo.? We will be in Booth #33 and our President, Joe Zahaitis will be presenting "The State of Cannabis: A Payments Perspetive" at 11am on the 7th.
  • October 10-12 in Detroit, MI for MJ Unpacked. We will be at Booth #207
  • November 28 - Dec 1 in Las Vegas, NV for MJ Biz Con!? We will be in Booth #6322.? See you there!


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