Cannabis Watch: Visa cracks down on cashless ATMs

Posted on February 28, 2022February 28, 2022

AAFCPAs would like to make cannabis clients aware of an emerging issue with the use of cashless ATMs. Visa Inc. issued a memo in December 2021 to customers, and reported in Marijuana Moment, warning that “miscoding point-of-sale transactions through the use of so-called cashless ATMs—a practice used by some cannabis retailers as a workaround to accept credit or debit cards for purchases—could lead to penalties or other unspecified enforcement action.”

AAFCPAs advises clients using Cashless ATMs to review the processes of their financial providers and to ensure you are using appropriately registered, regulated, compliant, and reporting solutions.

We continue to monitor ever-changing developments in federal legalization & banking reform. If you have questions, please contact: Scott Posnick, CMA at 774.512.9004, sposnick@nullaafcpa.com; David McManus, CPA, CGMA at 774.512.4013, dmcmanus@nullaafcpa.com; or your AAFCPAs Partner.

AAFCPAs was an industry pioneer and since 2012 has been deeply immersed advising cannabis businesses in tax, finance, and outsourced accounting! With national recognition, our multi-disciplinary team of advisors include CPAs, CFOs, estate planning & tax attorneys, wealth advisors, as well as business process, data analytics, IT, and cyber security professionals.

About the Authors

Scott Posnick, CMA

Scott is a senior member of AAFCPAs' Managed Accounting Solutions practice, providing high-level, outsourced CFO oversight and strategic planning, including financial forecasts & analysis and advising on growth strategies, business transactions, tax optimization, and strengthening internal controls. He has 35+ years of diverse, hands-on industry experience, including: high tech, biotech, manufacturing, distribution & wholesale, leasing and finance, as well as many traditional New England-based industries. Scott is well-versed in the issues and complexities facing commercial company entrepreneurs, and he makes himself an invaluable source of financial guidance as an extended member of client management teams.

David McManus, CPA, CGMA

Dave leads AAFCPAs’ Commercial Tax Practice and the firm’s Cannabis Business Practice, providing highly coveted tax, entity structure, and business advisory solutions. He has over three decades of proven experience advising manufacturers & distributors, real estate developers, high tech, bio tech, renewable energy, and cannabis businesses.