CHICAGO, IL - April 14, 2025 (NEWMEDIAWIRE) - CC Technology Corporation (“CCTC” or “the Company”), today issued a business alert warning legal cannabis operators of growing legal threats tied to the use of cashless ATMs following a groundbreaking lawsuit that could reshape how dispensaries handle payments.
Recent Lawsuit Sets Precedent for Future Suits Against Dispensaries Using Cashless ATMs
A recent lawsuit filed by a payment processor against a large multi-state operator (MSO) in the cannabis industry claims that the dispensary and its affiliates should be held responsible for a $950,000 fine Visa imposed on the processor. The first-of-its-kind suit highlights the risk of dispensaries working with credit card processors who claim to be able to bypass federal and network rules and offer a card processing solution to historically unauthorized cannabis dispensaries.
With this case, payment processors- once quiet enablers- are now flipping the script and suing dispensaries for damages and reputational harm. Visa has made it clear: masking cannabis transactions as ATM withdrawals using MCC 6011 is a violation of their rules, and operators caught doing so may face civil or criminal consequences.
“This lawsuit should be a wake-up call for the industry,” said Robert Lang, CEO of CC Technology Corporation. “The regulatory landscape has shifted. Payment processors are no longer looking the other way. They're coming after dispensaries that expose them to liability.”
CannaCard®: A Legal, Transparent Alternative
CannaCard® has long cautioned the industry about the risks associated with so-called “reverse ATM” systems. Developed specifically for the legal cannabis market, CannaCard® is fully transparent, operating entirely outside the major card networks to ensure long-term compliance and protection for its partners.
CannaCard offers a future-ready platform designed to keep cannabis operators in full compliance while improving customer experience. Key benefits include:
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No Risky Workarounds – CannaCard® does not rely on masked debit codes, PIN debits, or MCC mislabeling.
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Banking Compliance Built-In – The system follows strict AML and BSA guidelines and uses only secure ACH transfers.
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No Cost to Dispensaries – CannaCard® offers marketing agreements that allow partners to earn additional revenue with no out-of-pocket fees.
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Future-Proofed Operations – With the federal outlook still uncertain, CannaCard®’s model keeps dispensaries off network blacklists and away from legal threats.
“We Saw This Coming Five Years Ago”
As early as 2019, CannaCard® warned that cashless ATMs were a short-term gimmick built on shaky legal ground. The Switch v. Trulieve case only confirms the risks: from financial penalties to reputational damage, dispensaries relying on these tactics are gambling with their licenses.
“We’re proud to offer a real solution- one that doesn’t compromise dispensaries or put them in legal jeopardy,” said Lang. “Now more than ever, this industry needs trusted partners, not shortcuts.”
Make the Switch Before It’s Too Late
The current lawsuit is expected to be the first of many, as processors and card brands look to clean up cannabis-related violations. If your dispensary is still using questionable payment methods, the time to change is now.
CannaCard® is now onboarding new dispensary partners across the country. To begin the fast, simple process, visit www.thecannacard.com/apply. Our compliance team will guide you every step of the way- from setup to activation- to ensure your operations are secure and legally sound.
For more information or media inquiries, please contact:
Ed Sochacki
Chief Marketing Officer, CC Technology Corporation
(708) 671-8462
ed@cctechnologycorporation.com
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