Not too much fine print
Square’s recently launched Early Access program allows accepted sellers to process specific types of CBD payments through their platform. This is wonderful news! However, since it’s a partial program, and since payment platforms are notoriously stingy when it comes to highly regulated substances, there are nuances to what Square actually makes possible. If you are an accepted user of Early Access, or if you are applying with high hopes, read on to get the details (to see Square’s TOS for CBD companies directly, you can visit this page).
Slightly Higher Fees
Square charges slightly higher transaction fees for payments in their Early Access program compared to normal users. Right now we’re seeing averages of around 4-4.2%.
Potential for limits and reviews
It’s likely that Square is offering this Early Access program in order to troubleshoot the nitty gritties of what could be a larger more mainstream CBD payment program. In a sense, if you are benefitting from Early Access you are also a little bit of a guinea pig. Square makes clear that account limits and “reserves” are possible for all CBD sellers in their new program. On the bright side, the platform wants your CBD business, and will work with you to adjust your terms if you are unhappy with them.
Specific CBD products only
- All CBD products sold via Square must contain less than 0.3% THC.
- You can sell hemp flower via Square as long as you have lab certification confirming THC levels.
- You can sell CBD-only vape products, again, provided that you’re supplying COA’s
- You cannot sell CBD products marketed with health claims (make sure to contact us if you need help redesigning your product labels)
Casual CBD sellers
Are you a non-CBD businesses that also happens to sell a bit of CBD here and there? Sorry, you are not eligible for the Early Access Program unless you operate in a state where CBD sales are officially supported. Hey, where are CBD sales officially supported these days? Well, state laws, like payment platform red tape, are complicated. Get a good idea of all the states supporting CBD sales in one way or another by checking out THIS RESOURCE
Square’s Early Access program is surely just one of many payment opportunities that are coming soon for CBD and hemp businesses. If you remain curious about how to process payments online and in-store for your cannabis company, stay tuned right here for more analyses and insider resources.
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