Payment Processing & Legal Compliance for Psilocybin Retailers in Colorado.
As a company with deep roots in Colorado’s evolving regulatory landscape, we understand that navigating the legal complexities of psilocybin retail can be challenging—especially when it comes to payment processing. While Colorado has decriminalized and legalized certain therapeutic uses of psilocybin mushrooms, federal restrictions still impact traditional banking and credit card options. We’re here to keep you informed and help you make the best choices for your business.
As of Fall 2024 we are advising our clients to run a cash-only operation with MycoPOS until many of the legal hurdles become more widely accepted with bank processing. Our system as it exists currently, integrates with many of the most popular payment gateways, however at this time we must abide by the rules and regulations set forth by those institutions.
Federal Restrictions & Banking Limitations
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Psilocybin’s Federal Classification: Despite Colorado’s recent legal advancements, psilocybin remains a Schedule I controlled substance at the federal level. This affects banking services across the country, as federally insured banks and major credit card networks (Visa, MasterCard, etc.) avoid transactions tied to federally restricted substances.
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Implications for Payment Processing: Most traditional payment processors and banks cannot handle transactions related to psilocybin sales. As a result, many psilocybin retailers are limited to cash-only or alternative payment methods.
Available Payment Solutions
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Cash-Only Operations: To bypass federal restrictions, many retailers currently operate cash-only businesses, minimizing legal risk.
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Cashless ATMs & Debit Transactions: Some psilocybin retailers use cashless ATM services, allowing customers to make payments that operate like ATM withdrawals, with funds directly debited from a bank account.
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Cryptocurrency: For tech-savvy clients, cryptocurrency can be a viable alternative, though it has its own set of challenges and requires thoughtful integration and legal review.
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High-Risk Payment Processors: A few specialized companies serve “high-risk” industries and may offer tailored payment solutions for psilocybin retailers. These providers generally charge higher fees but may be able to offer solutions that accommodate the industry’s unique needs.
Our Commitment to Compliance & Client Education
We recognize that the legal and financial landscapes are constantly evolving. As part of our commitment to supporting your business, our team closely monitors changes in psilocybin regulations, banking policies, and payment processing solutions. When you partner with us, you’ll have access to up-to-date insights and a dedicated team to guide you through emerging developments.
Our goal is to help you make informed decisions and stay ahead of the curve as the industry progresses. Whether it’s selecting the right payment solution or understanding upcoming regulatory shifts, we’re here to provide the resources and support you need to grow your business confidently.
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This page is intended to inform visitors about the current legal climate and demonstrate our proactive approach in providing clients with critical, up-to-date information.