CPS – Does PayPal Accept Cannabis? Answered
Answered Throughout the majority of cannabis’ history in the USA, pretty much all transactions and trades were conducted using cash,…
Answered Throughout the majority of cannabis’ history in the USA, pretty much all transactions and trades were conducted using cash, usually in the form of handing money over to your dealer; after all, you couldn’t exactly use your credit card to fund an illegal purchase.
However, the growth of the cannabis industry has also seen the rise in general cannabis acceptance, as well as a relaxation of the various, formally strict laws surrounding purchasing and owning cannabis. Since it is now legal in many states in the USA to buy cannabis with no problems with the law whatsoever, you might think it obvious that there would be other methods of paying for your cannabis.
Unfortunately, there are still numerous problems surrounding our ability as consumers to actually pay for the cannabis we want – one of these problems is about the hugely popular and widely used payment network, PayPal.
So, does PayPal actually accept cannabis? Is it safe to use this platform to buy your cannabis, without risking your account being deactivated?
What is the Problem with PayPal & Cannabis?
On first thought, it would seem like there wouldn’t be a problem – why should PayPal care about you using their service to pay for cannabis?
The problem isn’t anything fundamental with the core ethos of PayPal, but rather with the clumsy, awkward position of cannabis within the US legal system.
Despite the fact that marijuana is legal in so many different states, including the state where you are probably hoping to purchase cannabis from, PayPal isn’t a business located within any particular state. Instead, it operates as an international company that needs to conform with all manner of different state laws as well as operating under federal law and, because cannabis is still formally illegal on a federal level, it puts PayPal in a very awkward position.
Although it is extremely unlikely that anyone would actually be prosecuted on a federal level for crimes relating to cannabis, if PayPal were to be seen to have allowed purchases associated with cannabis, they might be in legal trouble as well.
The repeal of the Cole Memo has only compounded this issue. This memo was something that was published during the Obama administration, by the then Deputy Attorney General, James M. Cole. Cole issued this memo which, in essence, urged all federal prosecutors and law enforcement agents not to pursue any kind of indictment of charges relating to cannabis if those possible crimes were committed in states with legal cannabis.
Essentially, Cole wanted the federal government to leave the states alone and allow them to enforce their own laws and permit their own citizens to use marijuana if they so choose.
When this was repealed in 2018 under the Trump administration, it left companies and individuals alike in a precarious position when it comes to marijuana, as they were now not sure what would happen to them if they tried to conduct cannabis-related businesses. This is why PayPal will likely ban you from using their service if they find out you used PayPal to pay for cannabis.
However, this might not always be the case, thanks in part to the efforts of PayPal and various state legislators across the USA in trying to create the SAFE Banking Act.
What is the SAFE Banking Act?
The SAFE Banking Act, known properly as the Secure and Fair Enforcement Banking Act, was introduced in 2018, originally so as to try and create some system of fairness with regard to banking regulations when the business in question is dealing with federally illegal substances, but it has quickly become known as a primarily cannabis-focused piece of legislation.
In short, the act makes it illegal for federal regulators to treat depository institutions (like PayPal) differently or punish them as a result of allowing cannabis-related business, so long as that business was conducted within a legal state.
At present, thanks to the relatively hard-line reaction to cannabis use across the USA, many federal regulators and politicians in Washington are doing whatever they can to get in the way of normalizing and legalizing the process of buying and using cannabis. As it is rather challenging to prosecute a cannabis-related crime that was performed within a legal state, (despite the repeal of the Cole Memorandum, it is still pretty hard) it is easier for federal regulators to go after institutions like PayPal so as to try and make it as difficult as possible for cannabis users to actually buy anything.
Although cannabis users across the world are used to having only ever to buy their supplies with cash, it would make it a great deal safer, more secure and more convenient if we could all use credit cards or PayPal.
The SAFE Banking Act will permanently enshrine banking institutions’ safety when conducting cannabis-related business, allowing you to whip out that American Express or PayPal account when at your local dispensary.
Many people that are used to the inconvenience of constant cash use might wonder why so many people support this act, as they have never had a problem with buying with cash, so why should others?
The key value of using your bank account or something like PayPal is that it adds another layer of protection and security for your purchases. For example, if you buy something with your credit card, but it turns out to be not what it claimed to be or is somehow defective, you can then use your credit card protection to ensure you get a full refund, allowing your credit card company to fight the issue with the retailer themselves.
This is why the SAFE Banking Act is not just beneficial for PayPal, but also for us consumers as well, as it affords us the necessary protections that we all deserve and are entitled to.
However, the SAFE Banking Act is still many months, or even possibly years, away from being passed and fully recognized, so we have to make do with the legal situation as it is right now.
So, are there any steps you can take to avoid having your account terminated by PayPal, just for using their service to buy Cannabis?
What Can You Do to Make Paying for Cannabis Online Easier & Safer?
The first, most obvious thing you can do to avoid losing your PayPal account is not use their service to begin with, instead only using cash to buy cannabis. This doesn’t really solve the problem of course, and is instead something that leaves you having to deal with all the inconveniences that cash imposes, while also letting those that oppose your use of cannabis win. Instead, it’s better to be a bit sneakier.
It is important to remember that, while PayPal will most likely ban you if they discover that you are using their service to purchase cannabis, they don’t really want to. The fact that they are supporting the SAFE Banking Act implies that they are especially cannabis friendly, meaning that they are more likely to look the other way if it is possible to get away with it.
This means that you simply just need to be incredibly ambiguous with your PayPal purchases when it comes to cannabis. If you are shopping at a smart cannabis retailer, they won’t have the word “cannabis” written anywhere, nor will they have any kind of link between their PayPal account and their actual storefront, so as to minimize the risk of being shut down.
So, whenever you buy cannabis using PayPal, simply make sure that you don’t make any reference to cannabis at all; if you need to include a reference number or a note in the payment order, make something up, such as “Rent” or “To pay for dry cleaning.”
While it might seem a bit nefarious to lie on these sorts of forms, it is equally heinous to attempt to curtail your ability to purchase cannabis safely to begin with; despite the saying that two wrongs don’t make a right, sometimes you are left with no other option than to do a little bit of light fibbing.
Learn all you need to know about PayPal CBD Policy 2019. Crucial things to know!
Buying Marijuana Seeds with PayPal in 2020
In 2020, internet commerce is king. People go online to buy everything from furniture to clothing, e-books and electronics. They also go online to buy cannabis seeds.
When shopping online, most stores give you a variety of payment methods, from credit cards to cryptocurrencies like Bitcoin. Another popular payment method is PayPal. This leads many cannabis connoisseurs to ask: “Can I use PayPal for marijuana seeds?”
The answer is yes and no. Read on and we’ll explain in more detail.
The Pros of Using PayPal
Why do people love PayPal for online shopping? For one, it’s incredibly convenient. With a single username and password, PayPal gives you the ability to pay through an account that can be linked to your bank account or any credit card. You can also make payments, send, and receive money to and from your PayPal account itself.
The latter option is particularly wonderful for making purchases that you’d prefer not show up on your bank or credit card statements. All you have to do is transfer money from your bank account to your PayPal account. All you’ll see on your bank statement is a PayPal transfer. After that, the purchases you make with the transferred money are confined to PayPal and won’t register on your bank statement at all. Although it’s legal to purchase cannabis seeds in most places, there are various reasons why people may want to maintain their privacy in terms of these sorts of purchases showing up on their bank and credit card accounts – particularly if statements for those accounts are mailed to their homes.
PayPal is also a wonderfully secure way to shop. They act as gatekeepers for your financial information. In other words, if you use a credit card to make a purchase through PayPal, your account information stays with PayPal – they never share it with the merchant. PayPal simply sends them the payment and charges your credit card. Like a credit card company, PayPal constantly monitors your account for any suspicious activity that looks like it may be fraudulent so they can alert you if someone makes unauthorized purchases on your account.
Making purchases this way also affords you dispute resolution if there are any problems with a transaction, as well as purchase protection on anything you buy through PayPal. When it comes to PayPal and marijuana seeds in 2020, many buyers feel that this is a good insurance policy, especially if they’re purchasing from a little-known shop. (We’ll talk more about why that’s a bad idea, however, later in this article.)
Marijuana-Seeds.NL – High Quality Genetics. Shipping Worldwide.
The Down Side of Using Paypal for Cannabis Seeds
Unfortunately, as wonderful, private and convenient as it may sound to buy cannabis seeds with PayPal, in 2020, things have become so complex that it’s not usually possible.
Why? Most of the larger, more reputable seedbanks won’t take PayPal anymore. One reason for this is that PayPal has an acceptable use policy that every user must agree to when they create an account. The policy states that PayPal may not be used to send or receive payments for narcotics, steroids, controlled substances, or drug paraphernalia.
While cannabis seeds aren’t technically considered a “controlled substance” in most places, unfortunately, PayPal gets the discretion to decide what transactions constitute a violation of their rules. This is covered in PayPal’s User Agreement. This means that while a seedbank may operate for years accepting PayPal for seeds, it only takes one transaction to be flagged to potentially derail everything. Shops risk having their payments frozen and their accounts shut down.
For seedbanks that are willing to run the risk of allowing their customers to buy cannabis seeds with PayPal, commissions are very high. In 2020, PayPal charges 2.9% + $0.30 USD per transaction. This sends some online cannabis seed retailers looking for other more affordable ways to sell their product.
Crop King Seeds. Worldwide stealth shipping. Bitcoin and Credit Cards Accepted.
Which Shops Accept Paypal for Cannabis Seeds?
Unfortunately, worry about policy enforcement and high commissions has caused many of the larger, better-known seedbanks to move away from accepting PayPal seed payments. Crop King Seeds, one of our trusted and most-recommended seedbanks, was one of the latest to stop accepting PayPal. (They do, however, accept credit cards and Bitcoin, so it’s still easy to make convenient and even anonymous payments for your cannabis seeds.)
Many other smaller shops still do accept PayPal, although they try to be discrete in the way they handle the payments so as to avoid having their accounts flagged. This is a risky game, however, both for the shop and for any buyers who take the gamble of getting their PayPal accounts suspended if a cannabis seed purchase attracts notice.
For customers using PayPal to buy cannabis seeds because of the Purchase Protection promise, buyer beware! On the PayPal website, the company lists specific items that are not covered by PayPal Purchase Protection. One of the things listed is “Items that violate our policies.”
If you buy weed seeds through PayPal and receive a batch of bad seeds from a little-known seedbank, it’s unlikely that PayPal is going to have any sympathy when you call them up or email them to tell them what you’ve purchased. You could even risk having your own account frozen or suspended due to purchasing items that violate PayPal’s policies.
Your Best Bet? Buy from Reputable Seedbanks
Problems with low-quality products and seedbanks with poor customer service sparked us to create reviews of the best and most-recommended online shops to buy cannabis seeds in 2020. We hope to guide our readers to the places with the best selection of strains, the most high-quality seeds, and the most excellent customer service should a problem arise with an order.
That last bit is incredibly important. When you shop at a reputable seedbank, you shouldn’t have to worry about security or the need to buy cannabis seeds with PayPal. Larger, well-known seedbanks will keep your credit card information secure, as well as provide stealth shipping to help you maintain your privacy. If you’re worried about a cannabis seed purchase showing up on your credit card or bank statement, many online seedbanks (such as MSNL Seed Bank) now take Bitcoin. If you’re hoping to make a 100% anonymous purchase without leaving any financial footprint, buying cannabis seeds with Bitcoin is the way to go.
The point is, even with the snags cannabis fans have hit with buying marijuana seeds through Paypal, in 2020, there are still many different ways to purchase your seeds in a secure, safe manner. Check out our reviews to learn which seedbanks we love best…and happy shopping!
Parent Page: Marijuana Seeds for Sale
Everything You need to know about buying cannabis seeds with PayPal.