Quick answer:
- Square has notified merchants it is exiting the CBD and hemp category. Any account that sells CBD or hemp products are being closed on November 5, 2026 at 11:59 p.m. EST.
- The shutdown applies no matter the CBD type, THC level, or how long a business has processed with Square.
- Merchants with a mixed product catalog have reportedly been given an earlier deadline — October 15, 2026 — to remove CBD and hemp items and keep the rest of their Square account active.
- Square is tying the decision to a broader, evolving change in how federal law defines legal hemp, not to anything an individual merchant did wrong.
- Vector Payments works directly with banks that already underwrite CBD and hemp merchants, so affected businesses can move before the deadline without a gap in accepting payments.
Square has told merchants it is getting out of the CBD and hemp business entirely. If your business sells CBD, hemp-derived cannabinoids, Delta-8, Delta-9, Delta-10, THCA, or related products and you process payments through Square, your account is affected and for many merchants, the deadline is closer than it feels. Here is exactly what’s changing, why it’s happening, and what to do about it before November 5, 2026.
What Exactly Is Square Changing for CBD and Hemp Merchants?
Square notified merchants that it is shutting down every account that sells CBD or hemp-derived products, effective November 5, 2026 at 11:59 p.m. EST. This is not a partial restriction. It doesn’t matter what type of CBD is being sold, what the THC level is, or how long the business has processed with Square accounts that have been active for years are being closed on the same timeline as newer ones.
“Square is making one of the biggest changes we’ve seen in this industry in the eight years they’ve supported it. If your business primarily sells CBD or hemp-derived products, it doesn’t matter what type of CBD you carry or how long you’ve been with them; that account is being shut down.”
Ryan Mirpanah, Owner, Vector Payments
Why Is Square Making This Change Now?
The timing is tied to a major shift in federal hemp law. The 2018 Farm Bill legalized hemp products containing less than 0.3% Delta-9 THC. New federal legislation changes that standard to a 0.3% total THC threshold — not just Delta-9 — which would reclassify most hemp-derived cannabinoid products, including Delta-8, Delta-10, THCA, and HHC, as controlled substances once that threshold is exceeded. Rather than try to track every product against a moving compliance line on a case-by-case basis, Square has decided to exit the category altogether.
The exact effective date for that federal change has reportedly shifted at least once already and may shift again, so treat any specific date you see for the underlying law as fluid. Square’s own November 5, 2026 deadline for merchants is the date to plan around.
Does This Affect All CBD Products, or Just Delta-8, THCA, and Other Intoxicating Hemp Products?
Every type of CBD or hemp-derived product is affected and this is not limited to Delta-8, THCA, or anything else that pushes total THC over the 0.3% line. Fully compliant, traditional CBD products are included too. Square is not attempting to separate compliant products from non-compliant ones; it is stepping away from the entire category.
Is Your Entire Square Account at Risk, or Just Certain Products?
If CBD, hemp, Delta-8, Delta-9, Delta-10, or THCA is a meaningful part of your business sales, your account closes on November 5 regardless of what you do with your listings between now and then. For merchants where these products are a small piece of a broader catalog, Square’s notice reportedly draws a different line: remove the CBD and hemp items by October 15, 2026, and the rest of the account can continue. Either way, confirm in writing which notice your business received rather than assume and be sure to ask immediately (and repeatedly) because Square is a numbered ticketing system, so ensure you get your answer ASAP by requesting right away.
What Should You Do Right Now If You’re a CBD or Hemp Merchant on Square?
- Confirm which notice applies to your business — full account closure (November 5) or product removal (October 15).
- Start evaluating payment processors that specialize in CBD and hemp before your deadline, not after.
- Gather your documentation now: certificates of analysis (COAs), processing statements, and business formation documents.
- Export your Square POS inventory and SKU data so it can be imported into a new system if you have a retail storefront and use a Square POS.
- If you run an e-commerce store on a closed platform like Weebly, Squarespace, or Wix, start planning a move to a more agnostic platform like WordPress/WooCommerce, Shopify or BigCommerce.
How Difficult Is It to Switch Payment Processors?
Switching is more straightforward than most business owners expect, provided you don’t wait until the final weeks. A processor experienced with CBD and hemp will lay out exactly what underwriters need, manage the application process, and handle the new processing bank relationship while you keep running the business day to day. Most merchants are closer to approval than they realize because it usually comes down to getting the right documentation in front of the right underwriter.
Vector Payments typically turns around approvals in 2 to 3 business days once documentation is submitted. High-risk accounts with more complex product lines can take a little longer (3-5 business days), which is another reason to start before the deadline rather than during the final week of October.
Why Are CBD and Hemp Businesses Treated Differently by Payment Processors?
It comes down to risk and compliance. What counts as a legal hemp product can depend on cannabinoid content, how it’s manufactured, and rules that are still evolving at the federal and state level. Most processors and their banking partners aren’t set up to track that kind of moving target, so they either avoid the category entirely, as Square is now doing, or hold merchants to a much higher underwriting standard than a typical retail account.
What to Look for in a Replacement Processor
- Whether the processor and its banking partner actually understand your specific products, not just whether they’ll approve an application.
- What documentation is required, and whether reserves apply to your account.
- How chargebacks are handled for high-risk, card-not-present transactions.
- What POS and e-commerce integrations are available for your specific setup.
- Whether the company is committed to CBD and hemp as a long-term category, not just a short-term opportunity.
The Biggest Mistakes to Avoid Before November 5
The most common mistake is waiting until the last minute. Processors will be underwriting a wave of merchants trying to move all at once in late October, right before the holiday season, which is a bad time to be starting from zero. The second mistake is signing up with a mainstream processor without fully disclosing what the business sells, just to get an account open quickly. An account that isn’t properly underwritten for the actual business model can be reviewed and shut down again later, putting a merchant right back where they started.
Watch: Ryan Mirpanah Breaks Down the Square Shutdown
Ryan Mirpanah, owner of Vector Payments, recorded a short video walking through exactly what’s changing, why, and what CBD and hemp merchants should do next.