Square Is Ending CBD and Hemp Payment Processing: What Merchants Must Know Before November 2026

CBD and hemp business owners: Your payment processing may be at risk, even if you recently purchased new equipment.

The payment processing landscape is changing, and thousands of CBD and hemp retailers may need to rethink how they accept credit and debit card payments.

Square, one of the nation’s most recognized payment processing platforms, has announced that it is winding down support for CBD and hemp-derived products.

For merchants who have relied on Square to operate their businesses, this raises an important question:

Who will process your payments tomorrow, and does the bank behind your merchant account actually approve CBD transactions?

At Florida Merchant Services, we believe business owners deserve transparency, stability, and the right information before making financial commitments.

What’s Happening With Square and CBD in 2026?

In August 2026, Square began notifying affected merchants that it would no longer support the sale of CBD and hemp-derived products, either online or in person.

The company’s notice directed merchants with mixed-product catalogs to remove CBD and hemp products by October 15, 2026.

Some hemp-focused merchants have also reportedly received account-closure notices effective November 5, 2026.

These changes come as federal legislation introduces new restrictions on hemp-derived products in November and December 2026.

Importantly, merchants should not assume their Square accounts will automatically remain available for CBD transactions until November. Square’s October 15 product deadline has already passed.

Businesses that sell non-CBD products may be able to continue processing those transactions through Square, subject to its policies.

For CBD retailers, however, the message is clear: Now is the time to review your payment processing relationship.

What If You Just Purchased New Square Equipment?

Imagine investing hundreds or thousands of dollars in new point-of-sale equipment, setting up your inventory, training employees, and getting your business ready for growth.

Then you discover that your payment processor will no longer support the products you sell.

Unfortunately, that is a real concern for CBD and hemp business owners affected by Square’s changes.

Depending on the equipment purchased, some merchants may discover that their existing hardware cannot be transferred to another payment processor.

This could mean additional expenses for replacement terminals, software integrations, installation, and employee training.

Before purchasing any new payment equipment, make sure your processing relationship is built to support your actual business model.

Ask whether the equipment is proprietary, whether it can work with another processor, and what happens if your merchant account is discontinued.

The Most Important Question: Does the Bank Actually Allow CBD?

Here is something many business owners do not realize.

A payment processing company and the bank that supports your merchant account are not necessarily the same organization.

A merchant services provider may advertise that it accepts CBD businesses. However, that statement alone is not enough.

The acquiring bank, sponsoring bank, and applicable processing partners must support the specific products and transactions being submitted.

5 Critical Questions Every CBD Merchant Should Ask Before Signing:

1. Who is the acquiring or sponsoring bank behind my merchant account? Know which financial institution is responsible for supporting your payment processing relationship.
2. Does that bank specifically permit my CBD or hemp products? Approval should account for the exact products you sell, including their ingredients, cannabinoid content, and whether sales occur online or in person.
3. Can you provide written confirmation? Request documentation from the merchant services provider confirming that the bank and processing partners have approved your business type and disclosed product categories.
4. What happens if the bank changes its CBD policy? Understand your cancellation terms, equipment obligations, reserve requirements, and how much notice you may receive.
5. Has my actual business been reviewed by underwriting? General advertising that says “CBD accepted” is not the same as underwriting approval for your individual business.

Don’t Rely on Verbal Promises: Get It in Writing

A salesperson may tell you that CBD processing is allowed.

But what happens six months later if your account is shut down, your funds are held for review, or the bank determines your products were never approved?

A verbal assurance may provide little protection.

At Florida Merchant Services, we strongly encourage merchants to request written confirmation of their approval before purchasing equipment or beginning transactions.

That confirmation should identify the approved business activity, applicable restrictions, and the financial institution or processing relationship supporting the account.

Remember, even written approval does not guarantee permanent processing access. Banks and card networks can change their policies, and products must remain compliant with applicable laws.

Why CBD Merchants Need More Than Just a Credit Card Machine

CBD and hemp merchants face challenges that traditional retail businesses may never encounter. These include:

• Changing federal and state regulations
• Restrictions imposed by acquiring banks
• Additional underwriting requirements
• Higher processing costs or reserve requirements
• Unexpected account reviews or interruptions
• Equipment compatibility concerns

The lowest advertised processing rate does not necessarily represent the best long-term solution.

A merchant should evaluate the complete relationship, including underwriting, banking support, technology, fees, service, and account stability.

Your payment processor should understand what you sell before accepting your application.

What CBD Business Owners Should Do Right Now

If your business currently uses Square, or if you are considering switching providers, take action before another disruption affects your revenue:

1. Review your current processing agreement. Determine which products are approved and whether your provider has changed its policies.
2. Request written bank-level confirmation. Do not rely exclusively on a salesperson’s assurance that CBD is permitted.
3. Verify product legality. Have qualified legal counsel review your products against current federal and state requirements. A merchant account cannot make an otherwise prohibited product legal.
4. Evaluate your equipment. Before investing in new terminals or POS systems, determine whether the hardware is transferable and whether additional fees apply.
5. Develop a payment processing contingency plan. If your current provider stops supporting your business, you should already understand your available alternatives.

Florida Merchant Services: Helping Businesses Make Informed Decisions

At Florida Merchant Services, we believe merchant services should be built on trust, transparency, education, and long-term relationships.

Our mission is not simply to provide payment equipment. It is to help business owners understand the financial relationships and processing systems that support their operations.

For CBD and hemp businesses evaluating their next steps, our team can help review their processing needs, discuss equipment options, and explore whether an appropriate banking and processing relationship is available.

Any potential CBD account remains subject to applicable law, bank policy, underwriting approval, and product eligibility.

Before you switch processors, purchase another terminal, or sign another agreement, make sure you understand who is actually approving your transactions.

Don’t Let a Payment Processing Change Catch Your Business Off Guard

Square’s decision is an important reminder that payment processing approval today does not guarantee approval tomorrow.

If you recently purchased equipment, have received a notice from Square, or are concerned about the future of your CBD payment processing, now is the time to ask questions.

Florida Merchant Services — Elevating Your Experience.

Contact Florida Merchant Services to discuss your payment processing needs and learn what questions you should ask before selecting your next provider.

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Disclaimer: This article is for educational purposes and does not constitute legal advice or a guarantee of merchant account approval. CBD and hemp product eligibility depends on applicable laws, acquiring-bank policies, card-network rules, and individual underwriting decisions.