Nothing pisses me off more, than finding some genetics and going to check out, and the seed bank only accepts weird forms of payment because they are trying to skirt tax laws. So now you’re signing up for some POS app or they want you send in cash in an envelope, or bitcoin. Other seedbanks can take a credit card all the way from across the ocean to local, why can’t you ?
7 Likes
Cash has always been standard amongst the reputable seedbanks. I won’t even deal with these new ones that want bitcoin or credit, too many new fly by night banks popping up.
14 Likes
Because it’s illegal to deposit cannabis money in federal banks. So no credit cards want to be held accountable. It’s not the seed banks fault!
Blame UNCLE SAM!
40 Likes
I’ve bought from multiple seed banks using CC. So if they can do it, so can these other black market dark web weirdos.
5 Likes
If you don’t like it don’t buy it. I’m a no paper trail kind of guy when it’s possible.
30 Likes
In January 2022, an official at the U.S. Drug Enforcement Administration (DEA) quietly confirmed that, yes, cannabis seeds fall under the legal definition of hemp and, yes, they can be sold openly and without criminal liability. At the Federal level… State laws may restrict sales.
11 Likes
From Flowhub:
The risk of credit card processing in cannabis
We’re still in the Wild West of cannabis right now, which might lead some to believe that anything goes. Perhaps you’ve considered using credit card processing — an appealing option many will tell you is safe. We’re not trying to spread unnecessary fear, but you need to be aware of the risks.
You may be looking for payment solutions, even temporary gap options until federal legalization allows other solutions, but credit card processing at your dispensary puts your business in jeopardy, even in the short-term.
Here’s a scenario that continues to play out across the country: A dispensary starts accepting credit cards through traditional retail credit card processing avenues and experiences significant sales increases. A few weeks in, they get a knock on their door, or more likely, an email alert or phone call. In some cases, it’s the credit card company shutting down their merchant account. Seems harmless, but in doing that, they can also freeze all credit card payments processed the previous day (because they hadn’t yet been fully processed and transferred to the cannabis merchant account).
Even though cannabis is legal in many states, credit card companies still won’t work with cannabis businesses or other industries they consider “high-risk.”
They have built algorithms to flag transactions or merchants selling cannabis. They may not identify you immediately, but they will eventually.
It’s not just the loss of the prior day’s revenue and shutting down the merchant account that’s the problem, it’s that your merchant account will be blacklisted. Thinking ahead, this could mean that you aren’t allowed to accept credit cards even when the rest of the industry is.
The risk of accepting credit cards isn’t limited to the card company. The state may also get involved; inquiring why your business is not compliant with their regulations. Sometimes, it’s both. Those weeks of missing income can easily end a young company, and running afoul of regulations can mean a lost license. Just like that, a dispensary could be out of business.
Obviously, this article references dispensaries, but the same applies for seed banks.
17 Likes
It’s better than it’s ever been – remember when cash was the only way to pay --“he Times They are a Changing” Bob Dylan 1960’s how true it is today !!!
3 Likes
You are correct about Cannabis businesses, however Federal Hemp laws regulated seeds and…. The DEA chimed in to confirm. I’m in Illinois however, I buy seeds from a couple seed banks, and local grow stores sell seeds and clones. I have used a CC without issue since the first of the year. Everybody prefers cash no doubt, but good vendors adapt quickly to todays ever changing environment.
2 Likes
People like to point to that letter, for understandable reasons, but it may be worth noting that the scenario involved was a little bit different… a state licensed hemp producer selling hemp seeds to another state licensed hemp producer. I don’t expect the feds are going to expend resources going after cannabis seed banks, but if they do… I wouldn’t rely on that letter.
5 Likes
This whole thread feels a bit suspect, but I wouldn’t go presuming that all banks that operate on a cash only basis aren’t paying federal income tax on the money they make. From a CC company’s perspective any cannabis related sale may run afoul of federal law, and therefore they may shut down accounts if they suspect the accounts are involved in illegal sales.
A person can (and no doubt should) pay income taxes on illegal income.
5 Likes
I don’t really worry too much about the paper trail. We all been hacked anyway. If you have caller ID and I called you, it would show somebody’s name completely different. I’ve had my telephone number stolen twice. The first time I even was on the phone with the person that was stealing it. Seeds are legal.
I think they’re more worried about fentanyl other drugs like that. Watt I believe they’re trying to do is get paid. As in stealing cash from these dispensaries.
6 Likes
Wow, I feel judged haha (jk)
We are a seed bank that uses multiple forms of payment because its convenient for people to use whatever they are comfortable with in a market thats not accepted by major banks.
Side note: I sometimes use paypal or bitcoin at garage sales… those scummy sellers are also avoiding taxes. Bunch of SCUM I tell-ya.
25 Likes
I’m more of a free market thinker on this one. It’s up to any business to decide for themselves what forms of payment they want to accept just as it’s up to every consumer to decide what forms of payment they will use. You don’t like their style then there is nothing stopping you from moving on to the next one 
9 Likes
I see posts from seed vendors all the time complaining that someone bought seeds from their site with a CC and then later reversed the transaction leaving the company with lost stock. That has happened here in the past too. Sometimes it’s not the companies who are the scumbags. Plus CC companies will drop you as a customer if they find you are running afoul of Federal regulations. Cash is king.
11 Likes
Such a shame that little guy didn’t get to contribute to the extra 6.2 billion to Ukraine or any of the other positive stuff our government is using tax dollars for. Good for nothing dirtbags I tell you what.
11 Likes
accepting bitcoin is not shady, this is a privacy-focused industry always has been.
a seedbank has a lot of inventory to store, a smaller one can not afford to be down because of some bs pulled by whoever is facilitating their payment methods for long. competition is getting stronger everyday.
however, from a seller side i would be skeptical of sending seeds to a select few states, namely idaho.
definitely being overly catious (for the time being), but history has proven if you run a business in this industry to watch your back.
5 Likes
I agree.
How many people here remember PayPal holding $6K of Bubbleman’s money when they found out he was selling Bubble bags?
9 Likes
I’ve sent cash in an envelope internationally multiple times and never had a problem with cash arriving or with me getting the items I’ve ordered.
It’s not difficult to do really.
12 Likes
you have to know no currency makes sense anymore. Trust your gut, it’s just paper trees
2 Likes