Key Credit Card Processor information you need to know with the passage of Minnesota law

Key Credit Card Processor information you need to know with the passage of Minnesota law, signed by Governor Walz on May 30, 2023 allowing Off-Sale and On-Premise liquor establishments to carry Low Potency THC; LPMN-THC as of July 1, 2023.

🔹LPMN-THC is defined as THC derived from the hemp plant and concentrated for use in edibles and beverages. The difference between hemp and marijuana plants is that hemp contains 0.3% or less THC.

🔹 If the lower-potency hemp product is intended to be consumed as a beverage, the container may not contain more than 2 servings and no more than 5 mg of delta-9 THC per serving or and 10 mg total THC.

🔹 If the product is an edible, the package cannot contain more than 5 mg delta-8 or delta-9 THC per serving and 50 mg total THC.

🔹 Customers must be over the age of 21 to purchase and it is law that you must card ALL customers regardless of age. Your POS should be able to force checking IDs on specific products. Enable that.

🔹 From our experience interfacing with credit card processors, most of them do NOT approve the sale of these products. While many who do not, may turn a blind eye, the risk can be catastrophic to your business. According to your processing agreement, many allude to the right to shut down your account and keep the money. We have actually seen this done by a payment processor – it was hundreds of thousands of dollars. Those companies have more and better lawyers than you do. Again, it sounds like a lot of people are looking the other way but even if it’s a 1 in 10,000 chance – is it worth it?  Call your processor and ask them. If you don’t get the answer you’d like, call us (320-230-2282). We know who the ones are that support the sale of these products.

Furthermore, for those that do support the sale of these products, make sure that your account is not qualified as a “high-risk merchant” under their classifications by carrying these products. You will be charged A LOT more for processing if you are. Again, if you need guidance on the processors on board WITHOUT classifying businesses carrying these products as high risk, give us a call.

🔹 Three processors that DO NOT (officially at least) allow the sale of LPMN-THC / CBD products? Heartland, Worldpay, and Elavon. Elavon appears to be one of the few NOT “looking the other way” on CBD. Check it out: https://www.cannabisbusinesstimes.com/news/us-bank-evalon-pulls-out-merchant-services-cbd-industry/

SIDE NOTE: Make sure your POS system has a feature so that you can force certain products to be paid for with CASH 💲💲. There are still many questions about full-potency marijuana and liquor stores. This will NOT be legal at this time. We will know more in the coming months.  However the law pans out, Cloud Retailer is one of the few POS that will FULLY support liquor stores’ capability to take advantage of this opportunity.

🔹 Any product distributors and/or manufacturers you work with should have “lab results” posted on their product’s website. All products should have a QR code on the can or packaging. We’re hearing that the big deal compliance-wise will be the low THC concentration AND they want the money to stay in Minnesota so it has to be Minnesota grown. Check out Lupulin’s THC page for reference: https://www.lupulinbrewing.com/thc/

🔹 Question: if people in the credit card business are “looking the other way” how will I get in trouble?
ANSWER: You know those credit card people who come into your store almost every day trying to get you to switch? They know the process to turn you in to be investigated. If a formal complaint is lodged, then there’s no longer any turning a blind eye. It’s rare, but a small group of processing reps view this as a sales tactic.

🔹 If you have better information than we do – please reach out – info@rite.us.

Thanks to Tony at the MLBA for being a great resource on the topic.

If you’re a liquor store in Minnesota, you’re crazy not to be a member. If you are a city-owned liquor store in Minneosta, the same is true of the MMBA. Another great organization.

To inquire about how we can assist contact: Gary Noble – garyn@rite.us  320-223-2293

For blog information beyond just the Processing side of things click here   


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