A multi-state cannabis brands platform operating in Toronto has recently started a lawsuit against San Francisco-based Eaze. The latter has allegedly been engaged in fraud for credit/debit card payment processing. Are you a marijuana merchant interested in reliable and affordable ACH eCheck services? Do you want to know more about this topic? If yes, this article is for you. Just keep on reading below.

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Eaze is an online platform that legally organizes cannabis delivery. Now, the platform is faced with a legal conflict initiated by Canadian DionyMed. The platform is being accused of processing credit card payments illegally.

Based on the lawsuit against Eaze, the latter has used unlawful business tactics with the help of shell companies based in Europe. Thus, the platform is allegedly gaining an edge over its competitors, including Chill.

According to the lawsuit, Eaze has kept the cannabis transactions in disguise to get approval for them. In an interview with Mashable, Eaze told the platform hadn’t been involved in illegal payment processing and it believed its partners were acting in compliance with Californian regulations.

With all that being said, it’s critical for marijuana merchants to work with only a respectable payments specialist in the field to avoid running into obstacles. With a true merchant services provider like First American Merchant, you can be sure to get easily approved for marijuana payment processing, such as ACH eCheck services.

FirstAmericanMerchant.com offers the cheapest rates and fees, as well as the highest level of fraud prevention solutions in the industry. FAM is a reputable alternative online lender and processor in the high-risk space that carries an A+ rating with the BBB.

Specifically, First American Merchant, in partnership with Verifi and its new Cardholder Dispute Resolution Network (CDRN), as well as the alert system offered by Ethoca’s, guarantees a unique system for merchants to fight fraud and chargebacks.

Eaze Engaged in Payment Processing Fraud   

Eaze, a delivery service similar to UberEats or PostMates, is quite popular in the cannabis industry. The platform’s name gained enough traction within the industry thanks to massive outdoor ad campaigns launched in California.

According to San Francisco attorney Katy Young, Eaze’s case has the potential to damage the cannabis industry at large. As Young further notes, in this industry, you can’t sit without getting your hands a bit dirty.  Marijuana business owners look for ways to run a successful business.

Currently, there’s no other defendant named in the lawsuit besides Eaze. The gist of the conspiracy allegations points to another question: are certain famous California-based cannabis retailers involved in the litigation?

Even if Eaze isn’t found guilty of the charges levied by DionyMed, some of its retail partners could be found guilty. The current lawsuit could reveal that.

To sum up, most credit and debit card companies in the U.S. don’t allow to purchase cannabis products, which is due to federal law. To get around this, Eaze is currently faced with a battle concerning the fact that the platform has hidden payment transactions related to cannabis products.

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