Quebec’s online cannabis portal, SQDC.ca, is the only legal option for residents of the province who want to buy cannabis products online. However, the portal has a major limitation: it only accepts credit cards as a payment method. This policy excludes many potential customers who do not have or prefer not to use credit cards, and pushes them to the illicit market, where they can find more convenient and diverse payment options.
The situation in Nunavik
The impact of this policy is especially evident in Nunavik, the northernmost region of Quebec, where more than 80% of the residents still purchase their cannabis from the illicit market, according to Patrice Abel, a captain with the Service de Police du Nunavik. Abel told Nunatsiaq News that the lack of legal retail stores and the credit card requirement are the main reasons why people in Nunavik choose to buy cannabis from illegal sources.
Nunavik has 14 communities that are only connected by air, and several of them are “dry” communities, meaning that alcohol is prohibited. Cannabis is one of the few substances that people can access, and its consumption rate is the highest in Quebec, according to a 2017 report. About 60 percent of the region’s 14,000 inhabitants, 90% of whom are Inuit, are under the age of 25.
Abel said that the illicit market offers more payment options, such as electronic money transfer services like PayPal, which are more accessible and convenient for many people in Nunavik. He also said that the illegal online stores have a wider variety of products, such as edibles and concentrates, which are not available on SQDC.ca.
The contrast with the rest of Canada
The situation in Nunavik contrasts with the rest of Canada, where the legal cannabis market has been steadily growing since legalization in 2018. According to Statistics Canada, nearly three-quarters of cannabis consumers in Canada purchased products from the legal market in the third quarter of 2023, up from 47% in the same period in 2019.
One of the factors that contributed to this growth is the expansion and diversification of the legal online cannabis platforms, which offer different payment methods, such as debit cards, e-transfers, and cryptocurrencies, as well as a wider range of products, such as edibles, beverages, vapes, and topicals.
For example, Ontario Cannabis Store (OCS), the online cannabis retailer in Ontario, accepts Visa, Mastercard, American Express, and Visa Debit cards, as well as Interac e-Transfer. OCS also offers same-day and next-day delivery options, as well as free shipping for orders over $150. OCS has over 1,000 products on its website, including 300 edibles, 200 vapes, and 100 beverages.
The reasons behind Quebec’s policy
Quebec has the most restrictive cannabis policy in Canada, with the highest legal age of 21, the lowest possession limit of 30 grams, and the ban on home cultivation. The province also has the lowest number of legal retail stores per capita, with only 98 locations across the lower third of the province, operated by Société québécoise du cannabis (SQDC), the sole authorized retailer in Quebec.
The credit card requirement for online cannabis purchases is part of Quebec’s policy to limit the access and consumption of cannabis, especially among young people. The province argues that credit cards provide a better verification of the buyer’s identity and age, as well as a better traceability of the transactions. The province also claims that credit cards are more secure and reliable than other payment methods, and that they reduce the risk of fraud and chargebacks.
However, these arguments have been challenged by some experts and advocates, who say that credit cards are not the only or the best way to ensure the safety and legality of online cannabis purchases. They point out that other payment methods, such as debit cards and e-transfers, also have security features and verification processes, and that they are more inclusive and accessible for people who do not have or want to use credit cards.
They also argue that the credit card requirement does not prevent underage or fraudulent purchases, as people can use stolen or borrowed cards, or fake IDs. Moreover, they say that the credit card requirement violates the privacy and confidentiality of the buyers, as it exposes their personal and financial information to third parties, such as banks, credit card companies, and government agencies, who can monitor and track their cannabis purchases.
The potential solutions and benefits
Some experts and advocates have suggested that Quebec should reconsider its online cannabis payment policy and adopt a more flexible and customer-friendly approach, similar to other provinces. They say that Quebec should allow other payment methods, such as debit cards and e-transfers, on SQDC.ca, and that it should also increase the number and variety of products on the portal, especially in remote and underserved areas, such as Nunavik.
They claim that these changes would have several benefits for Quebec and its residents, such as:
- Increasing the sales and revenue of the legal cannabis market, which could be reinvested in public health and education programs.
- Reducing the demand and supply of the illicit cannabis market, which could improve the quality and safety of the products, as well as the security and well-being of the communities.
- Enhancing the customer satisfaction and loyalty of the legal cannabis consumers, who could enjoy more convenience, choice, and privacy in their online purchases.
- Promoting the social equity and inclusion of the people who do not have or prefer not to use credit cards, such as low-income, unbanked, or marginalized groups, who could access the legal cannabis market without barriers or stigma.
Quebec’s online cannabis payment policy is one of the most restrictive and controversial in Canada, as it only accepts credit cards as a payment method. This policy excludes many potential customers who do not have or prefer not to use credit cards, and pushes them to the illicit market, where they can find more convenient and diverse payment options. This is especially evident in Nunavik, the northernmost region of Quebec, where more than 80% of the residents still purchase their cannabis from the illicit market, according to a police captain.
Some experts and advocates have suggested that Quebec should reconsider its online cannabis payment policy and adopt a more flexible and customer-friendly approach, similar to other provinces. They say that Quebec should allow other payment methods, such as debit cards and e-transfers, on SQDC.ca, and that it should also increase the number and variety of products on the portal, especially in remote and underserved areas, such as Nunavik. They claim that these changes would have several benefits for Quebec and its residents, such as increasing the sales and revenue of the legal cannabis market, reducing the demand and supply of the illicit cannabis market, enhancing the customer satisfaction and loyalty of the legal cannabis consumers, and promoting the social equity and inclusion of the people who do not have or prefer not to use credit cards.
