MJBulls 0029 Zodaka Transcript
Dan Humiston: [00:00:00] Today's show and the following message are brought to you by a former guest. Alt 36 is a Cannabis payment solution that's powered by Dash crypto currency to learn how you can take part in their expansion. Go to Alt36 dot com or listen to MJ bulls episode 12.
Jordan Friedman & David Erhlich: [00:00:19] with no recourse because the bank is just like well your own country doesn't even think you're a legal business. Where are you going to do
Dan Humiston: [00:00:42] From buminit media. It's the MJ bulls podcast a show about raising Cannabis Capital. im dan humiston on today's show zodaka is providing a cost effective alternative solution to risky Cannabis credit card processing.
Dan Humiston: [00:01:10] Today we're joined by Jordan Freeman and David Ehrlich from zodaka. Guys thanks for being mjbulls podcast.
Jordan Friedman & David Erhlich: [00:01:16] Thank you for having us. Now really we're really excited.
Dan Humiston: [00:01:19] Well OK. I've been dealing with this headache for years. So just please explain to me why processing credit cards in the cannabis industry is so hard.
Jordan Friedman & David Erhlich: [00:01:29] The main reason it's so difficult is because cannabis is federally illegal. Schedule One drug considered the same as heroin or LSD. And because credit cards are actually pushed through banks which are extraordinarily heavily regulated on the federal level they can't do it. Banks don't want to touch the credit cards.
Dan Humiston: [00:01:52] Ok so here's what I know. My rates are way higher and a portion of every one of my sales gets held in reserve. I think it's six months. I've talked to some of my other friends in the industry and they're dealing with even worse things. So tell us some of the horror stories that people are dealing with with their credit card processors those reserves.
Jordan Friedman & David Erhlich: [00:02:10] You know a lot of time these companies are processing foreign transactions are actually processing into another country Cyprus or something like the Isle of Man. And because of those transactions are going to get rejected immediately right out of the gate. On top of that they're going to reserves 10 maybe even 20 percent that you don't get for six months or higher or higher. And often times the reserves are rolling in because they're using if there's a Visa and MasterCard involved in purchasing cannabis directly is illegal. So eventually they're very likely that they'll get shut down and when they do that reserve is gone. And there is no legal recourse to get that money back because not even the country is going to recognize you as a legal business. So we have talked to many merchants in fact I would say the vast majority of merchants we have Had basically been robbed by an off shore credit card solution in the range from 10 to 150 thousand dollars. That is a very common story and a lot of these companies I can't speak for all of them but a lot of them know that they're going to get shut down and that is part of their protocols that they're going to take those. That was always the place for that. o just in information you have low paying higher rates because it's through a foreign bank there is reserves. There is card declensions six months out when the recently released slow settlement times. And then you can also ended the day basically to get robbed with no recourse because the bank is just like well your own country doesn't even think you're a legal business. Where are you going to do it over here.
Dan Humiston: [00:03:45] Yes. Oh my gosh. So OK guys tell me how you saw this. What are you doing to solve this problem. Because it's a super headache.
Jordan Friedman & David Erhlich: [00:03:53] So first and foremost by not dealing with credit and debit cards. We saw for so long and so many people just constantly getting shut down and dealing with sleazy salesmen who didn't warn them what was going to happen and all sorts of stuff. So credit cards and debit cards are out of the equation at this moment and you can't do that legally by the regulations it's just not possible for them. But as if you're using credit cards you're going to run into some level problems. So what we did is we built a direct transfer system so it our software enables the consumer and the business to transact direct me through our system. And that's the core of what it is. It's not through the credit or debit card rails and then the other way that we are outside of regulation is that we're a payment gateway. So we really are a company that routes data to processors for direct transfers. So because of that we're even one more step removed and we're really just a financial technology software company.
Dan Humiston: [00:05:00] That's clever now. Would you come right out of my checking account right into the merchant checking account or vice versa correct.
Jordan Friedman & David Erhlich: [00:05:07] Yes Exactly. We don't touch it in between there is no preloading required. Customers can use it as soon as they sign up it takes about a minute to sign up and they can immediately start making purchases.
Dan Humiston: [00:05:20] Sounds very similar to like Venmo or something like that.
[00:05:22] Our favorite Joke like we're a pay pal for everything that PayPal we're never touch
Dan Humiston: [00:05:30] Just a quick shout out to one of our farmer guest turning leaf Capitol a cannabis investment firm that provides both small and large investors the opportunity to take part in the cannabis bull market with their unique asset specific investment vehicle. Listen to MJbulls episode 10 or go to turning leaf capital dot com to learn more. And now back to the show.
Dan Humiston: [00:05:53] Let's just jump ahead in the next 12 months or so what do you guys need to do to handle all this growth. I mean you need more people you need more developers you need to be in different markets. Just give me some of the high level points of what you need to do over the next 12 months.
Jordan Friedman & David Erhlich: [00:06:08] Yeah 100 percent. We are going out for our series right now and we're looking for what would amount to the biggest to fund raise in Cannabis payment to date if we get well we're looking we hire are technical people we hire. We're hiring one dev person and we're looking to add about 20 more people to our team over the next six months and that is to basically handle our massive full rollout and push into Cannabis payments has a problem. and we're trying to come in and professionalize it and make it more legitimate and do it the way that companies in Silicon Valley recently done things which is both disruptive and exceedingly excellent across every single measured. It matters not just the products
Dan Humiston: [00:07:05] We've been speaking with Jordan Freeman and David Erlick from zodaka and all the information is on the mjbulls web site.
Dan Humiston: [00:07:11] But if somebody wants to invest who should they contact.
Jordan Friedman & David Erhlich: [00:07:14] They should just send an email to invite zokada .com we'll make sure to get back to them.
Dan Humiston: [00:07:33] hank you guys for being on the show.
Jordan Friedman & David Erhlich: [00:07:40] Thank you so much. It's really a pleasure and we hope to talk to you again soon.
Dan Humiston: [00:07:44] We will we will be talking again. Thanks guys.
Dan Humiston: [00:07:50] Just a quick shout out to one of our former guest cannaibics Pharmaceuticals which is a publicly traded cannabis biotechnology company trading under the symbol CANA Listen. MJ bulls episode 18 to learn about the developments in their cannabinoid based cancer treatment therapy.
Dan Humiston: [00:08:10] Thanks for listening to the MJBulls podcast to learn more about today's guest or to become a guest. Visit our website MJbulls dot com. Today's show was produced by prominent media with original music composed by Jamie humiston, . I'm Dan Humiston and you've been listening to MJBulls podcast.
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