Visa issued this compliance memo on December 2. The memo cites that the financial giant is well-aware of the ongoing scheme practiced by cannabis merchants to conceal cannabis-related transactions. The memo explains that cashless ATMs are not meant to disburse cash to cardholders; instead, they are POS devices that should be used with payment applications that are similar to regular ATMs. The cashless devices are used for purchases that are falsely labeled as ATM cash withdrawals. Purchase amounts are frequently rounded up to simulate a cash disbursement.
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