Cannabis Medical Solutions Announces Distribution Agreement for New “Cashless ATM’s” and POS Banking Terminals for Medical Marijuana Dispensaries in 15 States
GlobeNewswire ”Press Releases ”
LOS ANGELES , Oct. 20, 2010 (GLOBE NEWSWIRE) – Cannabis Medical Solutions Inc. (http://www.cannabismedsolutions.com/) (OTCBB:CMSI), a leading company specializing in merchant payment solutions and products for the medical marijuana industry, today announced that the Company has signed an exclusive agreement to provide specialized “cashless ATM’s” and POS banking solutions for medical marijuana dispensaries operating legally within 15 states. The cutting edge “cashless ATM” devices are smaller than a standard cash register and operate on a ticketing system rather than dispensing cash, much like those systems within the casino gaming industry.
The CMSI cashless ATM product will be placed in participating licensed medical marijuana dispensaries throughout the country. Patients will use the company’s pin debit card system on the cashless ATM, requiring the read of the debit or credit card, along with a pin number for added security. Instead of receiving cash for purchases as in a standard ATM transaction,the patient will receive a ticket for the desired amount of cash designated on the pin pad. The patient will then take the receipt to the counter and use the ticket as funds to complete the purchase of medicine or products.Merchants will receive funds within 48 hours from the patient’s card through the CMSI merchant clearing and banking alliance network.
“The credit card funding to ticket system has been utilized and proven to be a successful business model within the casino gaming industry for years. Due to the fact that banking legislation has not yet caught up to legalization and licensing of thousands of dispensaries throughout the U.S., CMSI has worked diligently to create secure and dependable financial transaction software and products to eliminate fraud, theft and criminal activity often associated with cash only transactions and operations. Within recent news events, some medical dispensaries have been subject to robberies and further criminal activity as a result of large amounts of cash often associated within the industry. With the new CMSI cashless ATM device and POS system, a patient only needs a debit card and a valid pin number and will receive a ticket as valid funds and no cash, which may be used for purchasing medicine and products within that dispensary only. The fees associated to the patient with use of the device are less than a standard ATM or credit card transaction,” Stated B. Michael Friedman, CEO for CMSI.
“Patients may also save and use their ticket receipts for bonus rewards and free products at participating dispensaries. We plan to be installing the first of hundreds of these cashless systems within licensed dispensaries over the next several weeks, and the expected revenue stream associated with user fees for these devices placed in several hundred dispensaries with thousand of patients seeking secure cashless transactions will be a meaningful validation of our business model as a leader within the sector,” further stated Friedman, CEO for Cannabis Medical Solutions .