It has clear limitations: product restrictions, higher fees, and stricter compliance
Square is not natively supported as a Shopify payment gateway
However, we have access to the workaround gateway that enables Square + Shopify compatibility
For scaling brands or broader product catalogs, a dedicated CBD merchant account is often the better choice
Stats Snapshot & Comparison Table
Feature
Square CBD Program
Dedicated CBD Merchant Account
Shopify Native Gateway
No
Yes
THC Limit Enforcement
Strict (0.3% or less)
Yes, but often more flexible
Compliance Monitoring
Frequent
Initial underwriting, then stable
Fees
Higher than standard
Varies; often volume-based
Product Flexibility
Limited
Wider acceptance (e.g. flower, topicals)
Setup Time
2–5 days
3–7 days, often with underwriting
Support for Subscription Billing
Limited
Fully supported
Intro: Square Is In the Game — But With Boundaries
Square isn’t anti-CBD. In fact, since 2019, they’ve operated a formal CBD program that allows U.S. merchants to accept payments for hemp-derived CBD products with 0.3% THC or less. It’s one of the more accessible options for beginners or brick-and-mortar stores dipping into CBD.
But here’s what most sellers don’t realize:
Not all CBD products qualify
Square’s compliance team actively monitors accounts
It does not work natively with Shopify checkout
That last one’s critical for online-first businesses.
Table of Contents
1. What Is the Square CBD Program?
Square’s CBD program lets you process payments for hemp-derived CBD products through its standard platform. You can use Square hardware for POS, the Square Online Store for ecommerce, and Square’s dashboard for managing inventory and payouts.
However, Square places you in a special high-risk category with:
Higher per-transaction fees
Ongoing compliance monitoring
Limited approved products
To join, you must:
Apply for approval
Provide documentation for your products (labels, COAs, etc.)
Higher processing fees for CBD than standard Square accounts
Strict compliance enforcement (your listings and labels matter)
Risk of frozen payouts if you fall out of compliance
“We built our business around Square… fully compliant, third-party audits, and still got shut down with no explanation. No appeal. No warning. Just gone.” — Real CBD Merchant (via Reddit)
Account shutdowns still happen — even when you follow the rules. One Reddit user documented how their fully compliant hemp business — complete with COAs, third-party audits, and legal review — was suddenly deactivated by Square without explanation. The company cited a generic “terms of service violation” and offered no appeal.
Does Square allow CBD sales? Yes, but only through its CBD program and under strict conditions.
Can I use Square with Shopify? Not natively. Shopify doesn’t support Square as a payment gateway. We offer a workaround integration.
Is Square a good option for CBD brands? It depends. If you’re starting small or running a retail store, it may work. But ecommerce brands usually outgrow it.
What happens if I violate Square’s CBD rules? Your account can be shut down and funds held. Always stay compliant with their product and labeling rules.
Square is one of the few mainstream processors that allows CBD — but it comes with tradeoffs.
If you’re running a small catalog or want fast setup, Square’s CBD program is a solid starting point. But for serious online sellers (especially on Shopify), a proper high-risk merchant account is almost always the better long-term play.
We’re one of the only teams that can offer both paths: access to the Square + Shopify gateway or a seamless CBD merchant account built for growth.
InclusivePay has been helping high-risk merchants stay live since 2018—supporting thousands of CBD, cannabis, peptide, and supplement brands with stable, compliant payment processing.
