Inside the Future of Cannabis Payments: Compliance, Innovation, and Transparency with Don Raleigh III of Evolve Payment

Key Takeaways

• Evolve Payment offers compliant ACH-based cannabis payment solutions.

• Credit card payments remain off-limits until federal regulation changes.

• Transparency and compliance are essential to avoid fines and shutdowns.

• Minnesota is emerging as a model for responsible, regulated cannabis markets.

• Evolve’s mission: Build payment systems that help the cannabis industry grow safely, compliantly, and sustainably.

The Evolution of Cannabis Payments

For over two decades, Evolve Payment has been building payment integrations that bridge software and compliance. But six years ago, the company’s journey took a new turn into cannabis.

“It all started when one of our tobacco clients came to us and said, ‘Hey, there’s this brand-new thing called CBD,’” recalls Don Raleigh III, Revenue Operations and Cannabis Payments Consultant of Evolve Payment.

That moment sparked Evolve’s education in cannabinoids, compliance, and the complex world of cannabis transactions. From understanding Certificates of Analysis (COAs) to navigating shifting state laws, the company quickly realized a major disconnect between software, hardware, and compliance and set out to close the gap.

“At our core, we’re a software company, not a hardware company,” Raleigh says. “We’ve built systems that conduct payments in this space within compliance, no creative workarounds, no clever branding for money laundering. This is truly above board.”

Why Cannabis Payments Are Different

While many assume cannabis credit card payments are outright illegal, the truth is more nuanced.

Under FinCEN 2014, the use of credit card networks for cannabis sales falls into a gray area due to anti-money-laundering laws. That’s why Evolve Payment’s cannabis transactions operate entirely on ACH rails, direct, bank-to-bank transfers that keep transactions compliant and transparent.

“In layman’s terms, it works a lot like Venmo or Cash App,” Raleigh explains. “It’s instant, verified, and fully integrated with Metrc without ever touching the credit card networks.”

This ACH system also enables real-time bank verification, ensuring customers and business partners have the funds available before a transaction goes through. “That gives peace of mind to dispensaries and ancillary cannabis businesses alike,” Raleigh notes. “It reduces chargebacks, fraud, and the risk of dealing with partners who can’t fulfill contracts.”

Spotting Non-Compliant Payment Schemes

One of the biggest risks in cannabis payments comes from non-compliant processors that disguise transactions through “creative” means.

“There’s a lot of clever branding for money laundering,” Raleigh warns. “You’ll see models like ‘buy a smoothie, get cannabis as a gift.’ Or systems that process credit cards by calling it a ‘gift card purchase’ or ‘cash-less ATM.’ Those are non-compliant, and businesses are getting caught.”

He points to a recent case in Arizona where a dispensary was fined nearly $950,000 for using disguised credit card processing methods.

“These companies get put on the MATCH list, basically the financial industry’s naughty list,” Raleigh explains. “If that happens, you’re barred from processing payments for five years.”

How Evolve Payment Stays Ahead

As regulations evolve at both the state and federal levels, staying compliant means staying connected.

“We maintain relationships with financial institutions and compliance councils who are literally on the House floor writing these bills,” says Raleigh. “When new regulations drop, we’re among the first to know how to adapt.”

Evolve Payment’s partnerships with major backend processors like FISERV and TSYS, and their membership in the PCI Security Council, allow them to anticipate regulatory changes before they reach the market.

This commitment to transparency and integrity earned Raleigh the honor of being named Top Payments Leader of 2025 by the Payments, Banking, and Compliance (PBC) Conference.

“It still feels surreal,” he admits. “But I think we were recognized because of the work happening here in Minnesota, the legitimacy and compliance-forward approach of our market.”

The Human Side of Compliance

Beyond policy and technology, Raleigh’s passion for compliant, regulated cannabis comes from a deeply personal place.

“I had a friend who unfortunately fell victim to the fentanyl epidemic by consuming fentanyl-laced cannabis during COVID,” he shares. “He was just a casual user. Because it was an illegal transaction, there was no accountability. That’s murder, and my friend is dead because of it.”

That tragedy solidified his belief that regulation saves lives.

“This industry needs testing, compliance, and legitimacy so people don’t have similar stories,” Raleigh says. “If I could wave a magic wand, I’d allow for credit card payments but under full regulation. Cannabis should be treated like alcohol: age-restricted, verified, and sold safely”. But until that happens, our solution is here to help cannabis related businesses elevate their accounts receivable process.

How to Vet a Cannabis Payment Processor

For operators evaluating payment partners, Raleigh offers clear guidance:

• Read the contract carefully. “If it’s easy to exit and doesn’t include penalties, you’re likely working with a legitimate partner.”

• Ask how the money flows. “If your transaction goes through more than two steps before reaching your account, that’s a red flag for money laundering.”

• Avoid long-term lock-ins. “Five-year contracts with cancellation fees usually mean someone’s hiding something.”

• Look into how your transactions are showing up on your clients bank statements, "If your business is showing up as something else besides your company, you may be involved in transaction layering."

Building a Better Future for Cannabis Commerce

As the cannabis economy matures, Evolve Payment is helping shape its infrastructure with integrity, technology, and human empathy.

“Our ACH-based system lets dispensaries and B2B businesses conduct non-cash, compliant transactions, no cashless ATMs, no rounding up, no wasted change,” says Raleigh. “It’s direct, exact, and transparent.”

The company’s mission echoes in its name: Evolve.

“We’re always asking how we can evolve this industry to be more efficient, more compliant, and more legitimate,” Raleigh says. “Because when cannabis payments work right, the whole ecosystem thrives.”

Connect with Don Raleigh III

Looking for compliant in-store, delivery, or ecommerce payments, or a backup plan if your provider changes course? Evolve is here to help.

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