Square Inc. is a popular payment processor that recently announced its expansion to serve CBD businesses.
In 2018 The Farm Bill of 2018 was enacted. This made hemp with a THC content of less than 0.3% federally legal for cultivation in the United States. Though this law came into play, there remained problems with payment processors who would accept CBD companies as merchants because of some of the remaining gray area legalities.
Square is refreshingly trying to accommodate CBD companies, allowing purchases to be made online and through an app, in person, and keyed-in and card on file purchases.
The payment processor quietly announced a pilot program accepting CBD merchants in May. Participating in the original pilot program came by invite only, but they recently announced their expansion to serve more CBD companies. The company said in a statement, “We believe everyone should be able to participate and thrive in the economy.”
Square has fees for using their service, like any payment processor. For CBD merchants, online and in-app purchases come with a 4.2% charge and a flat fee of 30 cents. In-person transactions have a 3.9% charge plus a flat fee of 10 cents. While keyed-in and card on file purchases carry a 4.8% charge and a flat fee of 15 cents.
All cards, Visa, Discover, American Express, MasterCard, and all rewards cards maintain the same rate when a purchase is made.
Additionally, CBD businesses can access other aspects of Square’s services such as payroll and inventory management.
Many CBD businesses have struggled to get off the ground because of their inability to have a consistent payment processor. If people can’t purchase a product with ease, it becomes hard to keep and attract new customers.
Shopify, an e-commerce software, also allows CBD merchants to use their platform. Shopify is essentially a one-stop-shop for businesses looking to be online. It offers payment processing, website management, marketing tools, and more.
Depending on a company’s needs, using Shopify for e-commerce or Square for simply payment processing can elevate the success of their business. Having both of these key players on board will greatly change the CBD business game.