Synergent is pleased to announce that our partner, the Accel Network, is the first and currently only U.S. debit network that will allow cannabis merchants to accept payments for the purchase of cannabis and cannabis products in states where it is legal. A beta program is currently underway, with general availability expected later this year.
Credit unions that take advantage of this offering will have the opportunity to attract new cardholders in an expanding market while also adding a new source of interchange income. Currently, thirty-eight states and Washington D.C. have legalized cannabis for medical and/or adult use. With further legalization expected across the country, sales of recreational cannabis are expected to reach approximately $49 billion by 2026 and $57 billion by 2028. (Source: 2023 U.S. Cannabis Report, New Frontier Data, Pew Research Center, Statista.)
Payment Solution for Cannabis Merchants
Cannabis merchants have faced challenges with limited payment options, operating on a cash-only basis or having to use expensive software solutions to accept payment.
The Accel Network will permit card transactions for cannabis and cannabis products under the following conditions:
- All transactions must be conducted face-to-face.
- All transactions must involve the use of a PIN number.
- All transactions must be magnetic stripe only.
These transactions will use a unique network identifier and will need to adhere to cannabis-specific network rules, which will be made available after the pilot program is complete. The unique identifier will also allow credit unions to implement custom fraud rules.
There is no action needed to implement this network ID; however, credit unions will have the opportunity to opt out of allowing these transactions.
The Accel Network will be communicating additional updates as the beta program progresses.