Mastercard issues BRAM Violations and $150,000 Fines to Merchants Selling Marijuana and Cannabis Products.
Two New York State merchants were recently fined by Mastercard for illegally selling marijuana and cannabis products to customers. The Mastercard Business Risk Assessment and Mitigation (BRAM) compliance team conducted secret shopping at these merchants and discovered these illegal activities.
The illegal sale of products such as marijuana, pre-rolled marijuana products, and cannabis-infused products directly violates Mastercard’s rules on the integrity of the brand and network (Mastercard rule 3.7), as well as the prohibition of illegal or brand-damaging transactions (Mastercard rule 5.12.7).
Violating Mastercards’ rules will lead to severe consequences, including fines of up to $200,000 and being listed on the Mastercard Alert to Control High-risk (MATCH) list. Being on this list marks merchants as having an unacceptable level of risk and significantly damages their business. It also results in the merchant being removed from their Merchant Processor.
As an ISO/agent of Merchant Industry, it is your duty to ensure that your merchants comply with all card brand rules and do not sell illegal substances such as marijuana, pre-rolled marijuana products, and cannabis-infused products in their place of business.
If you have any questions or concerns, please contact your Relationship Manager or our ISO Support team at 1-866-504-1888 or isosupport@merchantindustry.com
