US drug control agency will move to reclassify marijuana

One major effect of this is that weed stores will be able to use banks and payment processors legally once the regulators catch up.

A lot of them have wiggled around this problem by offering “atms” at the cash register. You pay with a debit card, but it’s not a normal transaction, it’s an ATM withdrawal! I don’t understand how the money is vended to the business, but it keeps it out of the store

That's a fairly a common practice for cash only businesses, normally a different company is supplying the ATM and its cash. For example I've seen cash only ice cream shops with the same setup.

That's not what he's describing. In this case there actually is no cash or traditional ATM involved on-site. It's connected to the dispensary POS, not a physical ATM. (They often have a regular ATM like you describe also, though.)

So you do an ATM transaction, but the money goes to the dispensary somehow. I do not know how it works on the back end, but I've used it as a customer. It's lovely and can even be done over your phone.

Oh interesting. Does it appear on your end as a cash advance when using a credit card?

Nope. ATM withdrawal. My bank even reimburses the ATM fee associated with it

An ATM withdrawal with a credit card is a cash advance.