They say everything’s bigger in Texas – and while the state’s hemp THC market is quickly gaining ground, there are still plenty of regulatory and operational challenges for retailers to contend with. That’s where a hemp and THC-specific point-of-sale (POS) system comes into play.
Choosing the best hemp THC POS system for your store is about more than just ringing up sales. It’s about ensuring your store stays compliant with Texas hemp laws, handles high-risk payments securely, and scales smoothly as your business grows. A POS specifically tailored to Texas hemp THC and CBD retail can help you stay on top of state regulations, streamline day-to-day operations, and protect your business from costly compliance mistakes.
Understanding Texas Hemp Retail Compliance
The Texas Department of State Health Services (DSHS) has set rules under which all hemp THC and CBD retailers must operate. Texas’s hemp laws include proper licensing under the Consumable Hemp Program, strict product labeling requirements, lab testing, and detailed recordkeeping. Texas also requires retailers to maintain a compliance file with current lab results for every batch or SKU in inventory, transaction records, shipping logs, and supplier invoices. You’re also required to have a system in place for verifying government-issued IDs at the point of sale, as these products can only be sold to customers over the age of 21.
The problem is that standard retail POS systems aren't equipped to handle strict hemp compliance requirements, like those in Texas. That’s why many retailers turn to a purpose-built solution like Cova POS. Cova’s cannabis and hemp-specific POS system is designed to automatically capture and store compliance data in keeping with DSHS mandates. Other compliance-friendly features like audit-ready reporting, batch tracking, inventory logs, and built-in ID scanning technology help shield you from violations and leave you less prone to manual error.
Payment Challenges for Texas Hemp and CBD Retailers
Selling hemp-derived THC and CBD products puts your business in the “high-risk” category with payment processors, even though these products are federally legal. Unfortunately, that means many of the most popular payment platforms like Square, Stripe, and PayPal may not support your transactions. If you’re using a workaround, it could be just a matter of time before your payment account gets frozen. This is why you need a POS system that integrates with a high-risk payment processor built specifically for hemp THC and CBD stores in Texas.
Integrated solutions like Cova Payments for CBD help ensure your checkout process is smooth, secure, and fully compliant. By consolidating your payments and POS into one platform, you can reduce transaction times and eliminate the risk of processor shutdowns. You can read more about CBD payment processing and see a breakdown of the most popular processors on the market right here.
Essential POS Features for Texas Hemp & THC Stores
If you’re a Texas retailer selling hemp-derived THC or CBD, these are the key features you should look for in a POS system:
1. Regulatory Compliance
Above all else, your POS must help you stay compliant with DSHS regulations. The system should reduce manual work and support accurate, audit-ready recordkeeping. Look for a POS that includes:
- Batch tracking to record when products were received, tested, and sold.
- Lab report and supplier documentation links for every SKU.
- Age verification with an electronic ID scanner to block underage sales and prevent human error.
- Audit logs that track product movement, adjustments, and sales history.
- Automated DSHS-ready reports formatted for regulators during scheduled or surprise inspections.
These features help protect your store from compliance mistakes and ensure you stay aligned with Texas’ strict hemp rules.
2. Inventory Management
Advanced inventory management lets you track hemp THC and CBD products by potency, strain, or category. This enables accurate labeling under Texas rules and supports bulk or batch-based updates for test results and recalls. Systems with SKU-level details can help you manage expiration dates and product movement, reducing compliance risk and streamlining restocks.
3. Payment Integration
Because hemp and CBD sales are considered high-risk, you need a POS platform that can seamlessly connect to vetted processors that handle CBD and legal THC payments. These integrations offer real-time reconciliation so you can flag errors or chargebacks quickly. The most effective systems also include fraud prevention tools like address verification and transaction analytics to reduce exposure to payment shutdowns – a common risk for cannabis and hemp retailers.
4. eCommerce and Integrations
A strong hemp POS should also sync inventory between online and in-store channels to reduce stockouts and price mismatches. Look for an automated eCommerce connection that can ensure consistent pricing and centralize customer data like preferences and order history across sales platforms so your customers have a unified experience.
5. Multi-Location Support
If you’re already operating in multiple locations or have plans to expand in the future, centralized inventory and reporting are crucial. Multi-location POS features consolidate sales tracking, compliance documentation, and inventory movement, which allows you to view all operations from a single dashboard and generate location-specific or rollup reports for DSHS license renewals or audits.
6. Customer Experience Tools
Your system should help build customer loyalty with integrated rewards programs – think discounts, points, and exclusive offers. A POS that tracks repeat purchase data can also help you personalize your marketing efforts, and digital receipts improve record keeping, giving customers easy access to batch numbers and compliance data while making the return/exchange process easier and more streamlined.
7. Analytics and Reporting
Look for dashboards and downloadable reports that track top-selling SKUs, sales trends by product type, daily revenue, tax calculations, and seasonal demand spikes. This kind of intel is vital for both strategic marketing and regulatory compliance.
Each of these features enable Texas hemp retailers to run effective, compliant operations while leveraging sales insights to help boost the bottom line.
POS Cost and Scalability Considerations
Not all platforms are priced the same – but like most things in life, you get what you pay for. When comparing POS systems for your Texas hemp retail operation, you’ll want to factor in:
- Monthly software licensing fees
- Hardware like registers, tablets, scanners, and printers
- Payment processing rates (especially with high-risk processors)
- Add-ons like eCommerce or loyalty modules
Startup-friendly systems may be fine for a single location, but if you’re planning for growth, it’s worth investing in a POS that can scale with you. Upgrading to an enterprise-level solution with integrated compliance and automation will save you time and reduce costly manual errors over the long run.
How to Choose the Right POS for Your Texas Hemp Store
When evaluating hemp and THC point-of-sale systems, don’t just take the vendor’s word for it. Ask for demos, references, and proof of compliance. Consider asking these key questions:
- Is the system already being used by other hemp or CBD stores?
- Does it support high-risk payment processors natively?
- How does it track and report batch and product compliance data?
- Can it sync with your eCommerce platform?
- What happens if you expand to multiple stores?
These questions will help you cut through the sales pitches and determine which systems actually meet Texas hemp retail requirements.
Why Texas Retailers Trust Cova
As one of North America’s leading cannabis and hemp-specific POS systems, Cova is being embraced by retailers across Texas who want secure, compliant, and scalable point-of-sale solutions. With integrated tools for DSHS compliance, high-risk payment processing, multi-store support, and robust reporting, Cova empowers hemp retailers to grow with confidence.
FAQs
Do I need a specific payment solution or POS built for a hemp and CBD store?
Yes. Hemp and CBD products are classified as high-risk by payment processors, which means mainstream processors like Stripe and PayPal may not support your transactions. You need a POS system that is integrated with a high-risk payment processor that explicitly supports hemp and CBD sales in Texas.
What are the payment processing options for hemp products in Texas?
Most Texas hemp retailers work with specialized high-risk payment processors. Platforms like Cova offer fully integrated payment options that are built to meet state and federal hemp compliance regulations.
How can I stay compliant with Texas hemp laws when using a POS system?
Look for POS systems that include built-in batch tracking, lab result uploads, purchase history logs, and automatic reporting tools. Cova’s POS for Texas CBD stores is designed to make compliance seamless, with data capture that aligns with current DSHS standards. For a complete list of legal obligations, check out the latest Texas Hemp Laws 2025 update.
What’s involved in setting up or switching to a Texas hemp-compliant POS?
POS setup typically includes importing your existing inventory, customer database, and sales history into the new system. You’ll also need to connect a compliant payment processor and configure your compliance settings. Cova offers onboarding support to make sure your store is up and running with all the right safeguards in place.
Choosing the best POS system for your Texas hemp or CBD retail store is about more than just features. It’s about protecting your business, serving your customers better, and ensuring you’re always one step ahead of compliance. If you’re ready to see how Cova can support your store’s success, click the button below to book a free demo today!