Connect with us

CBD News

CBD Brands Will Be Able to Accept Orders via Square Payment System




The program is presently in the “early access” stage and potential participants will need to apply.

Square has higher fees associated with each transaction, due to the heightened risk that they take on for the companies.

Square is a well-known payment processor that always tends to be on the forefront of innovation. The point-of-sale company already works within the cryptocurrency sector, and their recent decision will likely secure them as a necessary part of the cannabis community. According to a recent Twitter post that highlights a report from Forbes, Square will be announcing payment processing services for CBD.

CBD companies have struggled with securing any kind of banking or payment services, due to cannabis’s present status as a schedule 1 substance. Even though much of the CBD in the United States presently comes from hemp, hemp still contains trace amounts of THC, leaving banks apprehensive about offering services that could violate federal laws. While there are several bills in Congress that could help, Square is aiming to offer a more immediate solutions, and they don’t share the fears implied by the traditional financial industry.

Presently, Square is accepting applications for an early-access program for CBD brands, which was preceded by a beta program that was started in May. Shopify seemingly beat Square to the punch, as it announced willingness to work with CBD brands last week by hosting their e-commerce pages and providing payment processing options.

Presently, beauty and personal care businesses make up 12% of the payment volume at Square, while retail companies account for another 17%. For each sale, businesses will pay up to 4.8% to Square, along with another $0.10 to $0.30 per transaction, which varies based on the way that the transaction is handled. Other sellers have much lower rates, starting at 3.5% of each sale and $0.15 per transaction, which is due to the higher risk that Square takes on with these agreements.

Square’s general counsel, Sivian Whiteley, stated,

“From our perspective, what we are doing is bringing more sellers into the mix and bringing economic empowerment to a new audience. This allows sellers flexibility to sell in multiple channels.”

Any business that uses Square in the sale of their products will have to confirm that they are adhering to the regulations that the 2018 Farm Bill established. An employee with Square has to check and verify that the information on the brand’s website is true and accurate, though CBD transactions will not be functionable in Idaho or South Dakota. Both of these states have already established regulations to prevent these sales.

Even though the actions of Square could help with the CBD industry’s legitimacy, there is a possibility that CBD brands will be negatively impacted. New brands will have a smaller barrier to enter the market, which could let in bad players, but at least there will be room for these companies to grow as the federal policies evolve as well.

Andrew is a full-time professional writer in Canada with over 8 years of esteemed experience. He is one of the best cannabis health researchers, polished legal investigators and active CBD news reporters we have at TOC. While being featured in hundreds of health, technology, science, and even bitcoin publications; Andrew's now on the frontline of the Canadian cannabis culture and will continue breaking down everything so easily your grandma can understand hemp and CBD.

Continue Reading

Ultimate CBD Guide


ultimate-cbd-products-company-guidepopular-cbd-health-benefits best-cannabidiol-guide-resources hemp guide

TimesofCBD is the most active daily CBD news publication featuring the latest cannabis industry stories and marijuana market trends. As the leader in CBD-centric content curation, we invite all readers to come for the headlines and stay for the insights. Quality is the top priority when presenting user guides, analyzing product reviews and reporting fact-checked news announcements. All information is for educational and informational purposes only. Disclaimer.

Got news? Email

Copyright © 2020 | Latest CBD News, Cannabis Guides and Marijuana Trends
Note: Always seek real additional medical advice and consultation with a professional healthcare practitioner before considering any CBD. No statements found on this website have underwent Food and Drug Administration evaluation. The efficacy of any products or claims made have never been approved by the FDA either. No products shall ever be intended to diagnose, treat or cure any disease or prevent any ailment.