While recreational marijuana sales are legal in 11 states (plus Washington D.C.), it remains illegal on the federal level. Therefore, banks are not authorized to handle money from dispensaries; the government would consider it money laundering. Unfortunately, that is why Cannabis retailers must deal exclusively in cash… unless they use POSaBIT.
POSaBIT allows Cannabis retailers to take debit card payments in a compliant, legal manner. But how? It’s a question we receive often. The more one is familiar with blockchain and cryptocurrency, the easier it is to explain. To learn more about blockchain, click here. To learn more about Litecoin, click here.
Our unique solution is simple, yet built on a foundation of compliance. In the creation of our system, no regulatory stone was left unturned. Our Litecoin payment transaction is the result of years spent learning, implementing, and making absolutely sure that we remain compliant at all times. Additionally, we've spent the time to clear our business model with the highest bodies of legislature at the state level of every region POSaBIT is active.
The 4-Step POSaBIT Payment Process
Step 1: Either by using the POSaBIT POS system or through seamless integration between our payment processing and the store’s existing POS, the budtender rings up the customer’s chosen products. Just like they would for any other sale.
Step 2: Once we have the total purchase amount, the customer buys Litecoin from POSaBIT. That’s right - we sell the customer Litecoin. It's no different than a customer purchasing cash from an ATM. It is deposited into a unique digital wallet, specifically created for the customer. The upshot: they now own Litecoin. Hooray! The customer is provided with a receipt of purchase.
At this point in the sale, the customer has the option to take their Litecoin and walk out of the store. Why would they do this? Well, it’s an easy way to buy Litecoin, a premium cryptocurrency. Maybe they want to save it for later. Perhaps they simply want to make an investment in Litecoin. Regardless, they have the option to keep their newly purchased cryptocurrency.
Step 3: If the customer wants to continue with their Cannabis purchase, they simply opt to use their newly-acquired Litecoin to pay POSaBIT for their products.
Step 4: The customer receives their product and goes on with their day. POSaBIT reimburses the store in US dollars for the Litecoin purchase via ACH. The merchant never touches the cryptocurrency.
And that’s it. Fully-compliant, efficient, and a great experience for the customer and the store.