Notes on the illegal and risky ‘Cashless ATM or Point of Banking (POB) solution:


Part of the illegality of Cashless ATMs is that it charges the customer an ATM (convenience) fee which is federally illegal (per the so-called ‘Durbin amendment’) for purchases (but not for withdrawing cash from an ATM). This in addition to fraudulently hiding the fact that it’s a purchase as well as a cannabis transaction from the settlement bank (who thinks it’s an ATM dispensing cash). 


In addition to these legal risks, the solution is periodically terminated when the settlement bank or another stakeholder in the payment chain discovers the fraud and shuts it down. 


And as if all this was not enough reason to give one pause, there is the very real risk that a competitor may feel that they are being unfairly competed against by another company using an illegal solution while they’re trying to be compliant and legal and only accepting cash putting them at an unfair disadvantage. This is not a theoretical risk – the CA delivery service Eaze was sued last year for this very thing and only was able to sidestep the litigation by acquiring the plaintiff, then shutting down the lawsuit!


Our merchant processing program is transparently for purchases so in order to be legal prohibits collecting this ATM-related fee. However, the merchant is free to charge their customers, e.g., a $3 ‘compliance fee’, ‘service fee’ or any other cute service charge name on their invoice, if desired, thereby offsetting their merchant processing roughly 3.99% fee.


There is a lot of confusion about the difference between a cashless ATM and true PIN Debit merchant account. To put it simply, a cashless ATM is a credit card terminal programmed to behave like an ATM, whereas a true PIN Debit merchant account is a traditional merchant account that only allows Debit card transactions. 

Until now, there has not been a bank willing to go through the challenges of setting up a BSA/AML compliance program to accept the risk of processing card transactions for cannabis. We all know that credit cards are still illegal for the industry (regardless of what the other guys say). However, our fully transparent debit processing account is compliant. It is endorsed by the acquiring bank and processing platform. Debit payments essentially pull cash directly from the consumer’s account and deposit into your business bank account. Banks and the Feds like electronic funds a lot more than dealing with cash! So, what are the advantages of a PIN Debit merchant account? 


Sales are for the EXACT dollar amount of the purchase Customer does NOT pay Convenience fee 

100% transparent with full acquiring bank disclosure No cash handling 

Frictionless Checkout Process 

Sales, on average, increase by 25%+ versus cash or ATMs Seamless transition to credit cards when there is federal change 

No contract 

No early termination fees 

True DBA and business address on descriptor and receipts Fully transparent bank approved cannabis program 


Sales must be rounded up to the nearest $5 to $20 Customer pays “convenience fee” and usually an out of network fee 

Acquiring bank not disclosed (in most cases) Budtender must provide change 

Checkout requires explanation 

Sales, on average, increase by 18% versus cash Requires a new merchant account for credit cards upon federal change 

3 to 5 year contracts 

High early termination fees 

Disguised DBA and false address information is common Bank not aware of cannabis transactions/ATM placements 

Our truly transparent PIN Debit merchant account is the first traditional, compliant, and legitimate card payment solution. No workarounds, no smoke and mirrors, no bull – just simple, frictionless, and secure payments to promote the sustainability of the industry. Now you can accept payments like the rest of the world so you can focus on what you do best: growing your business. 

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Application Package Requirements  

☐ Completed and Executed Merchant Application and Agreement 

☐ Picture of the outside of the business 

☐ Executed Personal Guarantee 

☐ Executed Attestation Disclosure 

☐ Imprinted voided check or bank letter 

    ▪ Temporary checks are unacceptable;

      Checks that are preprinted by the Merchant are unacceptable 

    ▪ Bank letter must include the following:

    o Bank letterhead with current date 

    o Legal business name and Doing Business As (DBA), if applicable 

    o Bank Account Number (DDA) and Routing Number (ABA)

    o Type of Bank Account (Must be a checking account)

    o Bank representative name, signature, branch location and phone number 

☐ 3 Most recent bank statements 

☐ 3 Most recent processing statements including chargeback and return activity 

☐ Marijuana Related Business (MRB) license 

☐ Driver’s license of each Beneficial Owner with 15% or more of equity interest and Authorized Signer (copy of front and back) 

☐ Beneficial Ownership and Shares Validation - One (1) of the following documents will suffice.

  ▪ Current Articles of Incorporation including equity interest for each beneficial owner/ officer 

  ▪ Cap Table 

  ▪ Stock Certificates 

  ▪ Last Year’s Business Tax Returns including shareholder’s share of income, deductions, credit, etc. 

  ▪ K1 tax form with all beneficial owners 

☐ *Merchant must be current with Secretary of State; Articles of  Incorporation/Organization or Doing Business As (DBA) filing for sole proprietorship may be required if unable to validated via public record.

Please read entire section before submitting.

We CANNOT submit your application to underwriting without COMPLETE package. Please send only ONE email to HOPE Processing.