In order to get around the rules for credit card transactions, some payment solutions use cashless ATMs. Imagine your normal ATM, where you insert your card and give your PIN, only instead of getting cash out of the machine, you get a ticket which says that you can use that amount of money at the dispensary.
For example, you might get a ticket for $100, and then buy $85 worth of product. The dispensary will then add tax and a fee for using the cashless ATM, usually $2-5. You’ll then be paid out any change.
This form of dispensary payments can be a lot more convenient than cash, but still has some risks and concerns. The main thing to be aware of is what that ATM is calling itself. When you check your bank statement, you might see it listed at a health food store or flower shop. By lying about what the business actually is, there’s a high risk that the payment option could get shut down. But not before they’ve already potentially had access to your personal data.
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