Square's CBD and Hemp Product Deadline Is October 15: What Merchants Need to Know

Square, the payment and point-of-sale company used by many small businesses, has told affected merchants to remove CBD and hemp-derived products from their catalogs by Thursday, October 15, 2026. The requirement applies to both in-person and online catalogs. The notice was sent in August, and Marijuana Moment published the email on August 7.

Shops that sell other products through Square can keep selling those items, and their accounts stay open. Only the CBD and hemp items are affected. Square's deadline is separate from the federal law's implementation dates, so merchants should understand what Square is changing now, what the federal law changes later, and what steps they need to take to protect their businesses.

What Square Told Merchants

The email asks merchants to remove any CBD, hemp and hemp-derived items from their Square catalog, for both in-person and online sales. It also says these items will no longer be permitted on Square's platform after October 15.

The email does not limit the ban to intoxicating products. It covers the broad category of CBD and hemp-derived items, so non-intoxicating CBD oils, pet products and topicals could also be removed. The email does not list specific products, which means shop owners need to check each item in their catalog rather than assume which ones are affected.

Merchants with an outstanding Square Loan keep their balance and loan terms. For shops that sell other products, repayment continues as usual through their daily card sales.

A Square web page that once promoted its services to hemp businesses has since been removed. The page had said Square could help merchants sell CBD online and in-store.

Why Square Is Acting Before the Federal Restrictions Take Effect

Square tied its decision to federal law. A company spokesperson told Marijuana Moment that a new federal law taking effect later this year places new restrictions and requirements on hemp-derived products, including those containing CBD. The spokesperson said Square is notifying affected sellers and, where possible, helping them update their catalogs.

The federal change comes from a provision in the November 2025 funding law that narrows the federal definition of hemp. Under the revised schedule, most of the new restrictions take effect on December 11, 2026. Those include a limit of 0.4 milligrams per container for the combined total of THC and certain other cannabinoids with similar effects, along with restrictions on certain manufactured cannabinoids. Cannabinoids that cannot be naturally produced by the cannabis plant remain subject to the earlier November 12, 2026, effective date.

Congress moved most of these dates when it passed a stopgap funding bill on September 2. The delay does not repeal the restrictions, and lawmakers would need to act again to change the schedule. For products not otherwise excluded under the provisions taking effect on November 12, the existing federal definition's 0.3 percent delta-9 THC limit on a dry-weight basis remains relevant through December 10, according to Akerman's analysis of the funding bill. The delayed restrictions do not mean every product meeting that threshold is automatically legal under all applicable laws.

Square has not said whether it will move its own deadline to match the federal change. When Marijuana Moment asked whether Square might revise its policy if the federal ban is delayed or reversed, the spokesperson said the company did not have anything specific to share at that time.

Which Products Are Most at Risk

The 0.4-milligram total-THC limit is low enough that many currently sold hemp-derived gummies and beverages could fall outside the revised federal definition. The law also addresses certain cannabinoids with effects similar to THC and cannabinoids that cannot be naturally produced by the cannabis plant. The impact depends on each product's composition and the specific provisions that apply.

Non-intoxicating CBD is less clear. Square's email covers CBD in general, not only products that get people high. Shop owners should review each product's certificate of analysis, ingredient list and formulation, and seek qualified legal guidance where a product's status is unclear. A lab report alone does not establish that a product complies with every applicable federal or state requirement.

The Key Dates Shop Owners Should Know

1. October 15, 2026: Square's deadline to remove CBD and hemp items from catalogs.

2. November 3, 2026: U.S. Election Day. The election may shape the political debate over hemp policy, but it does not itself change the law's effective dates.

3. November 12, 2026: The federal restrictions on synthetic cannabinoids take effect.

4. December 11, 2026: Most remaining provisions take effect, including the 0.4 milligram per container limit and restrictions covering certain cannabinoids. Congress could amend the law before then.

The current federal funding measure also runs through December 11, 2026. Whether lawmakers use the next funding negotiations to revisit hemp policy remains uncertain.

What Shop Owners Should Do Now

Check your catalog now

Go through every item and category in your Square catalog. Look for CBD, hemp and hemp-derived products, both in-store and online. Follow the deadline and instructions in your Square notice, and keep a record of what you removed. If the deadline has passed, contact Square Support immediately to confirm the status of affected items and your account.

Ask Square for its notice in writing

Keep a copy of the email you received from Square. If anything is unclear about your account, contact Square Support and ask them to confirm in writing what happens after October 15, including whether your account will remain open for non-CBD sales.

Find a backup payment option

If CBD is a large part of your sales, start comparing other payment processors now. Ask each one whether it accepts hemp-derived products, what its fees are and how long account setup takes. If your business needs one, arrange an alternative payment method before the switch becomes urgent.

What May Come Next

Vector Payments has separately reported that some Square merchants whose businesses primarily sell CBD or hemp products have been given a November 5, 2026, account-closure date. That date does not appear in the mixed-catalog notice that Marijuana Moment published, and Square has not publicly confirmed it. Merchants should check the specific notice they received and get written confirmation from Square about their account's status.

Square's October 15 catalog deadline is separate from the federal restrictions scheduled for November 12 and December 11. Although lawmakers have proposed alternative hemp regulatory frameworks, the existing statutory deadlines remain in place unless Congress changes the law. Merchants should follow the instructions in their individual Square notices rather than assume the company will revise its policy.

The Push for an Alternative Federal Hemp Framework

Lawmakers have several proposals on the table. The Lawful Hemp Protection Act, introduced by Representatives Andy Barr and Angie Craig in July 2026, is proposed legislation, not current law. According to Representative Andy Barr's announcement of the bill, the proposal would create a federal framework with a 1 percent total THC dry-weight limit, testing and labeling standards, a 21 and over purchase age, domestic sourcing requirements and a ban on synthetic cannabinoids.

Not everyone wants the current rules reopened. In August, 35 state attorneys general urged Congress to let the November 2025 redefinition take effect. They argued that reopening it could bring new litigation, inconsistent enforcement and greater youth access. That disagreement is one reason the December deadline is contested.

AHAA advocates for a regulated hemp-derived product market, including age limits, lab testing, accurate labeling and restrictions on synthetic intoxicating products. Merchants and consumers who want to share their experiences with lawmakers can use AHAA's Tell Your Story page. AHAA's position is clear: regulate it, don't eliminate it.