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More cash, more headaches for marijuana retailers after Mastercard ban

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Marijuana retailers across the United States are adjusting to handling and securing more cash in-store after Mastercard’s abrupt decision last month to halt millions of dollars in cannabis purchases involving its popular debit card.

Operators are also bracing for the possibility that global financial giant Visa will follow suit while facing growing threats their increasingly cash-heavy operations will become even more attractive to criminals.

Some marijuana retailers are zeroing in on improving in-store communication with customers and the overall shopping experience in the wake of Mastercard’s exodus.

Other retailers told MJBizDaily they are reassessing internal processes, including researching payment-processing vendors to potentially expanding card-purchasing options.

The debit-card ban also will likely push more business to the underground market, sources told MJBizDaily, perhaps generating even more competition from the illicit market.

The U.S. Cannabis Council told Green Market Report that “hundreds” of legal marijuana businesses  – particularly retailers – were affected by Mastercard’s decision.

One store operator, meanwhile, said Mastercard purchases accounted for almost 20% of in-store transactions.

It all adds up to more headaches and woes for retailers and consumers, according to Andrew DeAngelo, a Northern California-based marijuana consultant.

“The end result of this obviously is a lot more ATM machines, a lot more people using cash and a lot more exposure to violent crime,” he said.

“More transactions are going to move to the underground market, where you don’t have this cumbersome problem with payments.”

In a bit of irony, it’s no secret that peer-to-peer cash payment apps such as Venmo – which are regulated at the federal and state levels – play a key role in underground commerce.

One step forward, two steps back

In suburban Boston, The Goods – a retailer that opened last November – is reassessing its point-of-sale software and payment-processing services after the Mastercard ban.

The Goods was in the process of lining up a new payment-processing vendor to add PIN debit – cards that look like credit cards but operate like electronic checks – as a transaction option for customers.

But that decision is now on hold.

“At the moment, we paused those conversations regarding the payment process,” owner Chris Vining said. “We want to make sure that we’re doing the right thing.”

In San Diego County, shoppers at Jaxx Cannabis have largely conducted transactions in a cashless environment – a trend that gathered steam among many retailers because of the coronavirus pandemic.

After the Mastercard ban, however, workers are directing more customers to the store’s existing ATMs to withdraw cash.

Quick checkouts are less common these days.

“It’s just the customer’s experience being affected,” said Johann Balbuena, chief marketing officer at Prime Harvest, Jaxx’s parent company, which also has cannabis delivery and manufacturing operations in the San Diego market.

“Now we’re just reverting back to what it used to be,” she added, referring to the recent increase in cash-based purchases.

The company’s delivery business, which accepts only online payments, hasn’t been affected yet.

However, a three-month internal analysis of in-store transaction receipts revealed nearly 20% of Jaxx customers used Mastercard for purchases. Only 1% used Discover.

“Just looking at those numbers,” Balbuena said, “hopefully Visa doesn’t decide to take the same measure.”

Visa dominates debit-card purchasing volume in the U.S. with a 72% market share, Yahoo News reported, citing Nelson Report findings.

At GreenPharms’ Arizona locations in Flagstaff and Mesa, about 40% of clients use debit cards.

“It’s hard to say how many MasterCard-only cardholders will be lost. But at GreenPharms, even one person turned away is one too many,” owner Arvin Saloum told MJBizDaily.

“Any dispensaries currently accepting debit cards are reeling from the adverse effects of Mastercard’s decision.”

The GreenPharms stores have ATM machines, and customers are encouraged to bring cash.

Crime concerns intensify

Handling more cash at retail and distribution outlets could jeopardize workplace safety and increase the potential for theft or burglary, industry insiders told MJBizDaily.

Across California, burglaries continue to plague licensed cannabis businesses with near impunity – sometimes with deadly results.

In 2022, licensed marijuana businesses in California reported 329 break-ins or burglaries with losses, according to Department of Cannabis Control figures provided to MJBizDaily.

That’s more than double the 147 burglaries reported in 2021.

Most of these types of crimes are unsolved, and, in many cases, the police are slow to respond or fail to follow up, industry operators have told MJBizDaily.

“When the police don’t respond and nobody gets charged and nobody gets caught, it emboldens these folks,” said DeAngelo, who co-founded the pioneering Harborside cannabis chain in the San Francisco Bay Area.

In March 2021, Caitlin Orman – then a shift supervisor – was attacked by an armed robber who used an employee badge to enter a Green Thumb Industries-owned Rise dispensary in Joppatowne, Maryland, as she counted money alone after close.

The assailant shoved her in the bathroom, threw her head against a wall and hit her with a metal garbage can lid.

Orman fought back, and the robber ran out of the store with an undisclosed sum of money from the vault.

“In a busy shop, we definitely had well over $100,000 there most weeks,” Orman said.

“A lot of people don’t realize how much cash is kept on hand.”

The incident and aftermath forced her to leave the industry, though she plans to return.

She’s still dealing with trauma and anxiety.

More than two years later, the crime remains unsolved.

Orman is encouraging cannabis employees to stay vigilant and mindful on the job.

“Our training had prepared me for a federal raid, but not for someone coming in to rob us,” said Orman, who recently became a ganjalier, the industry’s version of a wine sommelier at hospitality venues.

“It’s important to be prepared and have an emergency plan.”

In Northern California, one local retailer, which was recently robbed overnight by a crew carrying assault rifles,  is installing fog machines as a hopeful deterrent to mobilized crime rings.

The machines emit blinding bursts of fog immediately after an alarm is triggered, essentially clouding the room.

The system costs thousands of dollars and cuts into business margins, according to DeAngelo.

“That puts a lot of pressure on prices on the final product because someone has to pay for all this stuff,” he said.

“It ends up being the consumer, or it ends up being investors.”

Several operators told MJBizDaily they are monitoring in-store cash-handling as well as reviewing cash-courier services and security procedures.

Numerous cannabis retailers, including several multistate operators that run dozens of stores across the country, declined to speak with MJBizDaily given the sensitive nature of this topic.

Differing perspectives

In cannabis, exceptions are often the rule, particularly considering the local nature of supply chains and commerce.

Some brands, such as Kush Queen in Anaheim, California, continue to hum along, largely unaffected by the Mastercard development.

“The whole thing feels like a red herring or something, because I haven’t heard of someone I actually know who was hit by it,” founder Olivia Alexander told MJBizDaily via email.

Source: https://mjbizdaily.com/more-cash-more-headaches-for-marijuana-retailers-after-mastercard-ban/

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Jio’s 1,600-Satellite LEO Constellation Gets Technical Green Light

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Reliance Jio has crossed a significant milestone in its space connectivity ambitions after its proposal to deploy a Low Earth Orbit (LEO) satellite constellation of around 1,600 satellites received a positive technical assessment from the Indian National Space Promotion and Authorisation Centre (IN-SPACe).

The evaluation, conducted jointly by IN-SPACe, the Indian Space Research Organisation (ISRO), and the Wireless Planning and Coordination (WPC) wing of the Department of Telecommunications, reportedly concluded that Jio’s proposed system meets the required technical standards and is comparable to leading global satellite broadband networks.

India’s Indigenous LEO Satellite Vision

Under the proposal, Reliance Jio plans to deploy between 1,600 and 1,650 satellites in Low Earth Orbit at an altitude of around 650 kilometres.

The planned constellation is expected to provide high-speed satellite connectivity across India, with approximately 32 satellites visible from any location at a given time. The company aims to roll out the network within the next two to three years, subject to regulatory approvals.

According to industry estimates, the satellite system could deliver 4.5 to 5 terabits per second (Tbps) of total data capacity, making it one of the largest satellite broadband projects proposed in India.

The project is expected to require an investment of $10–15 billion (approximately ₹95,000 crore to ₹1.42 lakh crore), reflecting the scale of infrastructure needed for satellite manufacturing, launches, ground stations, and user terminals.

Regulatory Process Moves Forward

Following the successful technical review, the proposal is expected to move into the next phase of regulatory approvals.

The government may now assist Jio in securing orbital slots, coordinating spectrum usage, and filing applications with the International Telecommunication Union (ITU), the global body responsible for managing satellite orbit and frequency allocations.

Obtaining orbital rights remains a critical step, as Low Earth Orbit has become increasingly competitive due to the growing number of satellite broadband projects being planned worldwide.

Officials also indicated that the proposed satellite architecture has been designed to coexist with future Indian LEO constellations, allowing multiple domestic operators to share orbital resources efficiently.

Broadband, Mobile Connectivity, and Strategic Applications

Jio plans to use the satellite network to provide a range of communication services, including satellite broadband, mobile backhaul, enterprise connectivity, and direct-to-device (D2D) satellite communication, particularly in remote and underserved regions where conventional telecom infrastructure is limited.

The company also intends to establish 20 to 22 ground stations across India to support network operations.

Apart from commercial telecommunications, officials have highlighted the project’s potential strategic importance. A domestically developed satellite constellation could strengthen India’s communication infrastructure, reduce dependence on foreign satellite operators, and support national security requirements.

Reports suggest preliminary discussions are underway regarding the possibility of integrating defence-related payloads into some satellites, enabling both civilian and strategic use.

Major Step for India’s Space and Telecom Sectors

Industry analysts view the technical clearance as an important milestone in India’s expanding private space ecosystem. If Jio secures the remaining regulatory approvals and international orbital clearances, the project could become the country’s first large-scale indigenous LEO satellite broadband network.

The initiative also aligns with India’s broader efforts to expand digital connectivity while strengthening its presence in the global satellite communications market.

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Alleged Crores Pharma Scam Mastermind Arrested from Surat

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After evading law enforcement for nearly 13 years, an accused linked to a large-scale pharmaceutical fraud case has been arrested by Delhi Police from Surat, Gujarat. The suspect is alleged to have orchestrated a series of financial scams involving fake identities, forged documents, and dishonoured cheques used to procure high-value pharmaceutical raw materials.

Authorities say the accused, identified as Himmat Singh Lodha, is believed to have defrauded multiple pharmaceutical companies in Delhi of goods worth approximately ₹98 lakh before disappearing and remaining underground for years.

Fake Business Deals and Dishonoured Cheques Used in Fraud

Investigators claim the accused posed as a legitimate pharmaceutical trader and placed bulk orders for expensive drug ingredients, offering post-dated cheques as payment security.

In one documented case from 2013, he allegedly obtained around 550 kilograms of Gliclazide, a diabetes-related pharmaceutical ingredient, valued at over ₹26 lakh. When suppliers attempted to encash the cheques, they were reportedly returned with the remark “account closed.”

Following the transaction, the accused allegedly vacated his office and rented residence and disappeared without settling payments. He was later declared a proclaimed offender in 2016 after repeatedly failing to appear before court proceedings. Authorities had also issued a reward for information leading to his arrest.

Multiple Identities and Repeated Fraud Pattern

Police investigations further link the accused to another cheating case dating back to 2012, where he allegedly used a fake identity, “Kailash Jain,” to obtain a large consignment of Ambroxol HCL, a pharmaceutical compound used in cough medications. The value of that consignment was estimated at around ₹72 lakh.

Officials believe the accused followed a consistent modus operandi—posing as a credible businessman, securing high-value goods on deferred payment terms, and then disappearing after delivery while shutting down business operations.

Investigators suspect that forged business records, fake company credentials, and fabricated financial histories were used to build trust with suppliers and gain access to expensive raw materials.

Multi-State Surveillance Leads to Arrest in Surat

A special Crime Branch team tracked the accused through coordinated surveillance efforts across multiple cities, including Mumbai, Ahmedabad, and Surat. After nearly a month of technical monitoring and intelligence gathering, officials located and arrested him from a residential area in Surat.

Authorities also revealed that the accused had been involved in property-related activities while staying under the radar to avoid detection.

Growing Threat of Corporate Identity Fraud

The case highlights a rising trend of organised financial fraud targeting industries that rely heavily on trust-based transactions and deferred payments. Experts note that criminals increasingly exploit gaps in corporate verification systems by using fake GST registrations, temporary offices, and forged documentation to appear legitimate.

Cybercrime and financial fraud specialists warn that such schemes are becoming more complex with the widespread availability of digital business tools, making it easier to create convincing but fraudulent corporate identities.

Experts Urge Stronger Due Diligence in High-Value Transactions

Experts, including former IPS officer and cybercrime specialist Prof. Triveni Singh, emphasize the need for stricter verification procedures in commercial dealings. He noted that relying solely on paperwork or digital business profiles can expose companies to significant financial risk.

Authorities and industry experts recommend physical verification of business operations, bank account validation, and detailed background checks before engaging in high-value or deferred-payment transactions—particularly in sectors like pharmaceuticals, where single consignments can involve transactions worth crores.

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EU Pressure Builds on Google as Regulators Face Calls for Massive Fine Over Search Practices

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A growing coalition of European industry groups is intensifying pressure on regulators to take decisive action against Google over allegations of unfair search practices that could reshape competition rules across the region’s digital economy.

Investigation Under Digital Markets Act Gains Momentum

The case is being examined by the European Commission under the European Union’s landmark Digital Markets Act (DMA), introduced to curb the dominance of major technology platforms and ensure fair competition.

Launched in March 2024, the investigation focuses on whether Google has been prioritising its own services in search results, potentially disadvantaging rival businesses that rely on online visibility to reach customers.

Industry Groups Demand Swift Action

Several prominent European organizations have jointly urged regulators to conclude the probe without further delay. They argue that prolonged investigations allow alleged anti-competitive practices to continue, putting European companies—especially startups—at a disadvantage.

Signatories include the European Publishers Council, the European Magazine Media Association, the European Tech Alliance, and EU Travel Tech.

In a joint statement, these groups warned that delays in enforcement are affecting innovation, profitability, and growth prospects for regional businesses competing in digital markets.

Google Denies Allegations

Google has rejected claims of bias, stating that its search algorithms are designed to deliver the most relevant and useful results to users. The company has also proposed adjustments to address regulatory concerns.

However, critics argue that these changes are insufficient and fail to address the core issue of market dominance.

Potential Billion-Euro Penalties

If found in violation of the DMA, Google could face significant financial penalties. Under EU rules, fines can reach a substantial percentage of a company’s global turnover, potentially amounting to billions of euros.

Regulators may also impose corrective measures requiring changes to business practices, which could have long-term implications for how digital platforms operate in Europe.

Wider Implications for Big Tech

The case highlights ongoing tensions between European regulators and major U.S. technology firms. In recent years, the EU has taken a more aggressive stance in enforcing competition laws, aiming to create a level playing field for local businesses.

A final ruling against Google could set a major precedent, influencing future enforcement actions and shaping the regulatory landscape for global tech companies operating within Europe.

As scrutiny intensifies, the outcome of the investigation is expected to play a critical role in defining the future of digital competition across the European Union.

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