Californian payment provider, Linx Card, has fielded a spate of lawsuits from cannabis businesses in recent months, who claim the primary provider of debit merchant services to marijuana retail stores, owes them millions.
Linx offers customers a platform where they can purchase Linx gift cards, or pre-paid debit cards, that can then be used to make in-store cannabis product purchases using those cards. Terminals within select retail stores sell the Linx gift cards, as does the Linx website.
Court Filing Woes
Court filings made across the country allege that Linx owes at least four marijuana businesses money. Those sums include:
- $40,092 to Universal Herbal Center and Pineapple Express (who operate marijuana stores in California);
- $114,962 to Colorado retailer, Silver Stem Fine Cannabis;
- $939,010 to Las Vegas superstore retailer, Planet 13; and
- $1.5 million to Arizona and Nevada Reef Dispensaries.
In a statement, Linx CEO Patrick Hammond, acknowledged the company is working to resolve these issues and plans to ensure retailers are paid in full.