Dear Clever Credit,
I live close to a dispensary, and they have ATMs inside. Do dispensaries not take credit cards even if weed is legal in the state? I want to earn rewards for smoking!
Signed,
Credit for Cannabis
Dear Cannabis,
I hate to be the bearer of bad news, but the short answer is dispensaries don’t let you use your credit card to buy weed. This is because of the federal vs. state argument that keeps the legalization of marijuana in limbo across the United States. Because while one state may have legalized both recreational and medicinal marijuana, another state (probably even the next one over) may have only legalized it medicinally.
Since marijuana is still an illegal substance under federal law, large credit card networks like Visa, Mastercard, Discover and American Express don’t allow these kinds of transactions. But remember, a network is different from a bank. So even if the bank agrees to pay the merchant for the transaction, the network might not.
[READ 7 Stress-Free Ways to Maximize Credit Card Rewards]
Now, with everything in life, there is a loophole.
Some dispensaries have found workarounds that allow them to accept credit cards. One such way is using a third-party payment processor. However, because that accommodation comes with higher transaction fees, you could be the one paying those fees. Another (less ethical) workaround is when the dispensary isn’t being entirely transparent in the way it’s categorized the store. If this is the case and you find yourself at a dispensary that accepts credit cards, maybe find one that doesn’t. You don’t want to be on the hook for anything later just because a dispensary is trying to get more sales.
[READ The 5 Credit Card Apps Best for Tracking Rewards]
Now, is there an actual credit card you can use for cannabis-specific purchases? Totally. Is it worth it? Not so much.
Some credit unions, banks and even dispensaries offer credit cards you can use for cannabis purchases. Not only are they hard to find, but since you have to go through specific credit unions or banks, your options are extremely limited. You’re probably better off just using the ATM at the dispensary.
So while it may be annoying that you can’t earn rewards (yet) on your cannabis spending, don’t lose hope! Maybe one day “cannabis” will be your most-used category.
More from U.S. News
7 Stress-Free Ways to Maximize Credit Card Rewards
The 5 Credit Card Apps Best for Tracking Rewards
Clever Credit: Can My Credit Card Be Tracked at Protests?
Clever Credit: I Want to Earn Rewards for Smoking Pot. Can I Use My Credit Card at a Dispensary? originally appeared on usnews.com
