But debit cards are full of hidden dangers — and these dangers are often the same aspects that make them an appealing alternative to credit cards — like only being able to spend what’s in your account.
Here’s the problem: If a fraudulent charge is made on your credit card, there’s no immediate financial hit while you get things sorted out — since credit card bills are paid later, no money actually leaves your hands.
“Most merchant services companies do not want to accept credit card transactions from cannabis businesses,” says Kristi Kelly, executive director of the Marijuana Industry Group, a non-profit trade organization for licensed cannabis businesses. Discover and American Express confirmed they don’t allow cardholders to buy medical or recreational marijuana. Mastercard pleads the Fifth, acknowledging the legality isn’t clear-cut.
Federal law still bans the sale of marijuana for medical or recreational purposes, even though 29 states and Washington, D. “The federal government considers marijuana sales illegal, but is currently not challenging state laws that legalize marijuana sales,” says Seth Eisen, a company spokesman.
Both companies prohibit cardholders from buying lottery tickets with their credit cards.
Visa and Mastercard declined to comment on their policies toward purchases of lottery tickets.
If you do defy the odds, make sure you put your windfall to work so it continues to grow.
Even in states that allow the practice, the retailer may turn you down.One reason for the ban: Am Ex says customer disputes with online adult-industry companies increased administrative costs.The ban extends to American Express gift cards and prepaid cards as well.These funds can then be used to buy chips or inserted into an electronic gaming device like a slot machine.Keep in mind the high cost of a credit card cash advance.