Looking for a Square Alternative? Why Hemp and CBD Retailers Should Start Preparing Now

For years, Square was a popular POS and payment solution for hemp and CBD retailers because it was familiar and easy to set up. But on August 7, 2026, Square announced that affected accounts will be closed, giving retailers a limited window to find a new provider and prepare for the transition.

According to Nothing But Canna, Square has reportedly notified affected businesses that their accounts will close on November 5, 2026, although we've also heard reports of some retailers receiving earlier closure dates in October. Retailers using the platform should start preparing now to transition their technology, preserve important business data, and evaluate their options.

At the same time, the regulatory landscape is shifting. The U.S. Senate recently advanced legislation that could delay federal hemp restrictions originally expected to take effect in November. Read the latest update from Marijuana Moment.

That may give the industry more breathing room. But a regulatory delay does not necessarily change Square's business decision or its November deadline.

For retailers affected by the change, the smartest move is to use that extra time to prepare rather than wait until the final few weeks and scramble to migrate years of business data and critical systems.

Key Takeaways

• Square is discontinuing CBD and hemp-derived product sales in the United States, online and in person. Sellers can continue until their own deadline, which falls between October 15 and November 5, 2026.
  
• Mixed-catalog retailers must remove CBD and hemp items by October 15, 2026 and keep their accounts. Retailers whose catalog is mostly hemp are reported to face account closures beginning November 5, 2026.
• Export your transaction history, product catalog, customer list and 1099-K forms now. Square's guidance states account information becomes inaccessible after deactivation, and no grace period is published.
• Canadian retailers are not affected. CBD is a controlled substance under the Cannabis Act and is sold only through provincially licensed cannabis retailers.

Square's US CBD Payment Processing Program Is Ending

Square is discontinuing CBD and hemp-derived product sales in the United States, online and in person. Sellers can continue until their own deadline, which falls between October 15 and November 5, 2026. Square ran an approved CBD payment processing program, open only to U.S. businesses, from 2019 and is closing it following the federal change to how hemp is defined.

Square told sellers on August 7, 2026 that CBD and hemp-derived products can no longer be sold on its platform. Mixed-catalog sellers have until October 15 to strip those items. Sellers whose catalog is mostly hemp have reportedly been told account closures begin November 5. Square's wording, given to Marijuana Moment, was that "selling CBD and hemp-derived products, online or in person, will no longer be permitted on Square's platform." A spokesperson added that Square is "notifying impacted sellers and helping them update catalogs."

The reason Square gave is the change in federal law. Section 781 of the 2026 Appropriations Act redefines hemp using a total THC standard rather than the delta-9 threshold retailers have worked with since 2018. It counts THCA and delta-8 toward the limit and adds a cap of 0.4 milligrams of total THC per container on finished consumer products. The U.S. Hemp Roundtable has estimated that around 95% of hemp cannabinoid products currently on shelves would fall outside those limits.

Worth noting: Square's deadlines land before the law does. Retailers lose card acceptance on Square in October and early November, while the rule they are being moved for does not apply until November 12 at the earliest, and possibly December 11. Whatever happens in Congress, the Square deadline is a business decision Square has already made.

Which Retailers Are Affected

What happens to your account appears to depend on how much of your catalog is hemp or CBD. Square has not published where the line falls, so the safest step is to read your own notice rather than assume you match someone else's.

We've heard from retailers who received October closure dates rather than the November 5 date reported elsewhere. If your notice gives you an earlier date than the one you've read about, work to your date.

What Happens to Your Account, Your Data, and Your Money

Square's announcement covered very little of this. Its own standing documentation answers more than you would expect, and knowing which parts are genuinely unanswered is worth as much as the answers.

What to Look for in a Square Alternative

Switching providers is about more than replacing one piece of technology with another. For highly regulated businesses, your technology partner should understand the industry, support the way you operate, and make the transition as painless as possible.

Here are three things to consider.

1. Choose a Platform Built for Hemp and CBD Retail

Square and most generic payment platforms are built to serve many different types of businesses. Hemp and CBD retailers have more specific needs, from product tracking and age verification to compliance requirements, regulatory scrutiny, and constantly changing laws.

At Cova, we understand those challenges. Our platform is purpose-built for regulated retail, including hemp, CBD, and cannabis businesses. We design around the realities of your industry, helping simplify complex workflows, keep up with changing requirements, and make day-to-day operations easier to manage.

Learn more about Cova POS and Payments for CBD and Intoxicating Hemp Retailers, or read why Square was never built for regulated retail.

2. Look Beyond the Headline Price

When comparing Square alternatives, don't look at just one number. Consider the total value of the platform, including software, hardware, fees, integrations, support, and the cost of managing multiple systems.

Just as important, choose a partner that understands your industry and can adapt as regulations, compliance requirements, and timelines continue to change.

Cova is more than just POS and payments. You get highly competitive processing rates built into a powerful retail platform, plus the industry expertise, compliance know-how, and real human support to help your business adapt and keep running smoothly as regulations and market conditions change.

If you're weighing providers side by side, our guide to CBD and hemp payment processing covers what to ask about rates, reserves, and approval.

3. Make the Transition Stress-Free

Changing your POS and payment system takes planning, especially when years of business data are involved.

The earlier you start, the more time you have to organize your data, prepare your team, test new workflows, and resolve issues before they become last-minute emergencies.

Cova's implementation and support teams help make the transition easier, from onboarding and data migration to training and ongoing support.

And when questions come up, you get real, in-house experts, not AI chatbots. Our highly rated support team consistently earns five-star reviews, with an average wait time of under 30 seconds.

A Checklist for the Weeks Ahead

Two dates are fixed: October 15 for removing CBD and hemp items, and your closure date if you received one. Everything else you control. Work backward from whichever applies to you.

1. Read your own notice first. Check the Square dashboard and your email rather than working from what other retailers have posted. Your date may not be theirs.
2. Export everything while your account still works. Transaction history, product catalog, customer list, and your 1099-K forms. Square's own guidance says you lose access to this once the account is deactivated, and it publishes no grace period. Do this in the first week, not the last one.
3. Request your card-on-file migration separately. Square can move saved customer cards to a processor that meets PCI DSS Level 1 standards, and says it takes up to two weeks. If you run subscriptions or repeat orders, this is the step most likely to catch you out.
4. Move your domain if it sits with Square. Unlocking it and transferring out takes seven to ten days and runs through your dashboard, so it needs an account in good standing.
5. Write down what you have. Current rates, hardware list, integrations, outstanding gift card balances, and any active Square Loan terms. You'll need all of it when you compare providers.
6. Shortlist providers that underwrite hemp under the new rules, not just the 2018 standard. This is the question that separates real options from ones that will drop you again in six months.
7. Start your application at least six weeks before your deadline. Underwriting takes time and usually involves document requests.
8. Check your catalog against the new limits. Some SKUs will not survive the total THC standard whichever processor you use. Better to find out in September than in November.
9. Run both systems side by side for a week or two before you switch over. Catch the problems while you still have a fallback.
10. Move recurring charges over about a week before your cutoff.
11. Remove your CBD and hemp items from Square by October 15.
12. Reconcile your final Square payouts and keep the records. Your chargeback liability continues after the account closes.

Questions Retailers Are Asking

Does Square still process CBD payments?

Only until November 5, 2026. Square is ending CBD and hemp-derived product sales in the United States, online and in person. Mixed-catalog sellers must remove those items by October 15, 2026, and hemp-focused accounts have been given closure dates from November 5, 2026.

Can I still apply to the Square CBD program?

As of August 2026, Square's own page still invites U.S. businesses to apply and carries no notice of the discontinuation. An application would not survive the program's deadlines, which run from October 15 to November 5, 2026. Treat any guidance published before August 2026 as out of date.

What was the Square CBD program?

Square has run an approved program for hemp-derived CBD sellers since 2019, open only to U.S. businesses and operating under the 2018 Farm Bill definition of hemp. Sellers applied and were reviewed before acceptance. Square is closing it in 2026 after federal law redefined hemp using a total THC standard.

What did Square charge for CBD processing?

Square's CBD rates sat above its standard pricing, and published figures vary between sources. Compare current options and what to ask about rates, reserves and approval in our guide to CBD and hemp payment processors.

Can I keep using Square if CBD is only part of my catalog?

U.S. retailers with mixed catalogs keep their accounts. Square requires removal of every CBD and hemp-derived item by October 15, 2026, after which all other products continue selling normally. Square has confirmed that accounts remain open for non-CBD sales.

Which products does the change cover?

The U.S. restriction covers CBD and hemp-derived products sold online and in person. The new federal total THC definition captures THCA and delta-8, so products that met the previous 0.3% delta-9 standard now fall inside it. Square has not published a category-by-category list.

Does this apply in Canada?

No. Square's CBD program was open only to U.S. businesses, and the change responds to U.S. federal law. Canada has no general retail CBD market for that rule to affect, because the Cannabis Act controls CBD regardless of source or THC content and only provincially licensed cannabis retailers may sell it. Square has served licensed Canadian cannabis retailers directly since 2023, and that is unaffected.

Can I export my sales and customer data before my account closes?

Square's deactivation guidance instructs sellers to export payment history, item library, customer directory, and 1099-K forms before closing, and states that account information is not accessible afterward. No grace period is published. Saved customer cards need a separate migration request.

Will Square hold my funds when it closes my account?

Square's Payment Terms allow it to delay payouts or hold a reserve balance at its own discretion, with no fixed time limit published. Funds held at closure are paid on the normal schedule unless an investigation is open. Liability for chargebacks continues after closure.

Do I still owe my Square Loan?

Outstanding Square Loan balances remain payable and Square has confirmed the change does not affect them. Because repayment normally takes a share of daily card sales, Square has reportedly offered affected sellers an alternative arrangement such as a payment plan. Ask before your card volume drops.

Will my Square hardware work with a new provider?

No. Square readers, stands, terminals, and registers operate only on Square's platform. Square publishes a 30-day return window and standard warranty periods but no policy covering hardware when it closes an account, so treat replacement hardware as part of your switching cost.

What happens to my outstanding gift cards?

Square has published nothing on outstanding balances at closure. The obligation to customers sits with the retailer, not the processor. Most states treat unredeemed balances as unclaimed property reportable after a dormancy period, commonly three to five years. Pull your balance report and plan how to honor them.

Will I end up on the MATCH list?

MATCH is Mastercard's shared database of terminated merchants, and acquirers add merchants under defined reason codes covering fraud, excessive chargebacks, and regulatory breach. Square has published no guidance on whether affected sellers will be listed. Ask your next processor to check your status during underwriting.

What can hemp retailers still sell after the new rules take effect?

Under the new U.S. federal standard, products must meet a total THC limit of 0.3% dry weight, including THCA, plus a cap of 0.4 milligrams per container on finished consumer products. The U.S. Hemp Roundtable estimates around 95% of hemp cannabinoid products currently on the market fall outside those limits. State rules vary on top of the federal standard, so check where CBD is legal in North America for your market.

Regulations Change. Cova Is Built for It.

Hemp regulations, deadlines, and requirements continue to evolve, and there's still plenty of uncertainty about what comes next.

For Cova, navigating change is nothing new. We've spent years supporting highly regulated retailers through shifting rules, compliance requirements, and market changes.

Our team stays on top of regulatory developments so we can help retailers understand what's changing, prepare for what's next, and adapt with less disruption.

The rules may keep changing. Cova will be here to help you navigate them.

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