The popular point-of-sale and payments service Square says it will no longer allow CBD and other hemp-derived products to be sold on its platform, according to an email obtained by Marijuana Moment.
The communication, sent to a business that uses Square, cited an upcoming change to federal law that will recriminalize many hemp products that were previously legalized by Congress.
Hemp derivatives with less than 0.3 percent delta-9 THC on a dry-weight basis were federally legalized under the 2018 Farm Bill that President Donald Trump signed during his first term in office. But late last year, the president signed new legislation containing provisions that will redefine hemp to make it so only products with 0.4 milligrams of total THC per container will remain legal after November 12.
“Because of this change, selling CBD and hemp-derived products — online or in person — will no longer be permitted on Square’s platform,” the email said.
“Your Square account remains open, and you can continue selling all of your non-CBD products on Square as usual, to the extent permitted under Square’s policies,” it continued. “Only the affected CBD/hemp items are impacted.”
Businesses are being directed to “remove any CBD, hemp and hemp-derived items from your Square catalog (both in-person and online)” by October 15.
“After that date, these items will no longer be permitted on Square platform,” the email said. “We know this is a significant change, and we want to give you as much time and support as possible to prepare.”
A Square spokesperson told Marijuana Moment that “a new federal law taking effect later this year places new restrictions and requirements on hemp-derived products, including those containing CBD.”
“To ensure compliance with this new law, we’re notifying impacted sellers and, where we’re able to, helping them update their catalogs so they can continue processing on Square,” they said.
A now-deleted page on Square’s website previously pitched its services specifically to hemp businesses, saying it could help them “sell CBD online and in-store to reach every customer.”
“Create a free online store and seamlessly accept payments for your CBD products. Or sync our software with your current site,” it said. “No matter how you run your CBD business, Square makes sure every part of it is protected.”
The platform’s new prohibition on hemp products comes amid a growing push in Congress to delay, alter or reverse the forthcoming ban on hemp products.
The U.S. Senate is expected to vote as soon as Friday on whether to extend the effective date of the hemp restrictions until December 11.
A number of members of Congress from both parties have filed or are circulating legislation that would enact regulations for hemp products in lieu of broad prohibition.
When asked whether Square would consider further revising its policies if the federal hemp product ban is delayed or reversed, the spokesperson said that “while we are constantly evaluating our policies and the broader compliance landscape to see if we can support more business types, we don’t have anything specific to share at this time.”
Read the full CBD and hemp products email from Square below:
Subject: [Action required] Important update about your Square account and CBD products
We’re reaching out with an important update about a federal law change that affects businesses selling CBD and hemp-derived products.
What’s changing
A new federal law takes effect on November 12, 2026 that redefines which hemp and hemp-derived products are legal.
Because of this change, selling CBD and hemp-derived products — online or in person — will no longer be permitted on Square’s platform.
What this means for your business
Your Square account remains open, and you can continue selling all of your non-CBD products on Square as usual, to the extent permitted under Square’s policies. Only the affected CBD/hemp items are impacted.
What you need to do
- By October 15, 2026, please remove any CBD, hemp and hemp-derived items from your Square catalog (both in-person and online).
- After that date, these items will no longer be permitted on Square platform.
- If your business sells other, non-CBD products, no further action is needed — you’re all set to keep selling them.
If you have a Square Loan
Your outstanding Square Loan balance is unaffected by this change. Your remaining balance and your loan terms stay the same. Here’s how repayment continues:
- If you sell other, non-CBD products on Square: Nothing changes about how you repay. Your loan will continue to be repaid automatically as a percentage of your daily card sales, just as it does today.
We know this is a significant change, and we want to give you as much time and support as possible to prepare. For more information or to contact us, visit our Support Center.
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