Cashless ATM

A cashless ATM is a point-of-sale workaround used at dispensaries in which a payment terminal is registered and coded as an ATM. The customer inserts a debit card, enters a PIN, and selects an amount rounded to the nearest $5 or $10; the transaction settles on the debit network as an ATM withdrawal, the dispensary remits any change in cash, and delivers the product. ⚠️ The practice violates Visa Core Rules §§1.10.2.2 and 10.1.2.1 and Mastercard Rules §5.12.7 (accurate transaction coding) and can trigger money-laundering exposure and breach of merchant agreements. In December 2021, Visa issued a compliance memo instructing issuers and acquirers that cashless ATMs violate network rules. In 2023, Mastercard directed member banks to cease processing cannabis debit transactions, targeting the "PIN debit" workaround. Compliant alternatives use ACH/pay-by-bank rails rather than card networks: Aeropay (QR-code, bank-linked), CanPay, Dutchie Pay, Hypur, and Paybotic. Some vendors continue offering rebranded "Point of Banking" despite prohibitions; operators using them bear significant contractual and regulatory risk. → See also: Banking, Compliance