Square is dropping hemp and CBD: what shop owners should do now

What Square announced

In August 2026, Square emailed sellers that CBD, hemp, and hemp-derived products will no longer be permitted on its platform, online or in person. Square pointed to a new federal law that redefines hemp later this year.

Not every shop got the same notice. Sellers with mixed catalogs were told to remove hemp and CBD items and keep their account open for everything else. Some sellers whose business is mostly hemp were told their account will close entirely.

The dates that matter

• October 15, 2026: deadline to remove CBD, hemp, and hemp-derived items from your Square catalog.
• November 5, 2026: account closure date reported by some shops that sell mostly hemp.
• November 12, 2026: the federal ban on synthetic hemp cannabinoids takes effect.
• December 11, 2026: the federal hemp definition moves to total THC, with a limit of 0.4 mg total THC per container for finished products. This date was already delayed once and could move again.

A federal delay does not move the Square deadline

Square has not said it will change its policy if the federal rules are delayed or changed. Treat the dates in your Square email as binding unless Square tells you otherwise in writing.

What to do this week

• Find the Square email for your account and confirm which applies to you: removing items by October 15, closing the account on November 5, or both. If it is unclear, ask Square in writing.
• Export your catalog, inventory, customer list, and sales history from Square while you still have access.
• Pull current certificates of analysis for every hemp and CBD product and note the total THC per container, so you know which products may be affected by the federal 0.4 mg limit.
• Gather the documents a new processor will ask for: certificates of analysis, recent bank and processing statements, business formation and ownership papers, and photos or links for your product listings.
• Apply to at least one processor that openly accepts hemp and CBD merchants, and tell them exactly what you sell. Accounts opened without disclosing CBD sales can be shut down later, often with funds held.
• Ask any new processor about its reserve (how much of your sales it holds and for how long), chargeback handling, and whether it works with your point-of-sale system and online store.
• Run the new processor alongside Square for a few days, confirm deposits arrive, then move your hemp sales over before your Square date.
• Plan for cash flow. A reserve or a gap between processors can tie up money for weeks, so talk to your banker or accountant now.

If you are in North Carolina

North Carolina does not issue a state hemp retailer license today, so the federal hemp redefinition and your payment processor’s rules are what change your day-to-day business this fall. The NC General Assembly is also considering bills that would set an age limit of 21 and a total-THC standard for hemp products. Watch those along with the federal dates.

Get an alert when these rules change

PolyWise watches the official sources for hemp, CBD, and THCA shops, starting in North Carolina, and tells you in plain language when something changes, with a link to the official source.