How to Sell CBD with Square
Payment Processing Expert
Here’s how to get started selling hemp-derived CBD (≤0.3% THC) using Square’s CBD Program:
- Verify Eligibility
- You must sell only hemp-derived CBD products containing no more than 0.3% THC.
- You cannot ship to countries where CBD is illegal (e.g., China, Hong Kong, India, Singapore, UAE, etc.)
- Apply for Square’s CBD Program
- Go to Square’s CBD page and click “Apply now”.
- Complete the online application to request access to the Square CBD Program
- Gather Required Documentation
- Certificate of Analysis (COA) for each product, confirming THC levels ≤ 0.3%.
- Detailed product descriptions (ingredients, usage).
- Business formation documents and banking information.
- Submit Your Application
- Upload your COAs, business license, bank statements, and product details.
- Square will review compliance and may request additional information.
- Configure Your Square Dashboard
- Once approved, add your CBD products as items in your Square Item Library.
- Set pricing and descriptions exactly as reviewed in your application.
- Integrate & Start Selling
- In-Person: Use Square Terminal or Square Reader for card-present sales.
- Online: Enable Square Online Store or embed Square’s payment links/APIs on your website.
- Understand CBD-Specific Fees
- Online: 3.8% + $0.30 per transaction
- In Person: 3.5% + $0.10 per tap/dip/swipe
- Keyed-In/Card-on-File: 4.4% + $0.15 per transaction
- Maintain Compliance
- Keep COAs up to date for any new SKUs.
- Avoid medical claims (no disease-treatment language).
- Monitor your Square Dashboard for holds or flags, and respond promptly to any compliance inquiries.
By following these steps, you can leverage Square’s user-friendly POS and e-commerce tools while staying fully compliant with CBD regulations.
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Navigating the complexities of selling CBD products can be a daunting task for many entrepreneurs. With a myriad of regulations and financial restrictions, finding a reliable payment processor is crucial for success. Enter Square, a robust platform that has expanded its services to include CBD merchants. In this article, we will explore how to effectively sell CBD using Square, focusing on its CBD Early Access Program and the benefits it offers to businesses.
Understanding Square's CBD Early Access Program
Square's CBD Early Access Program is a significant leap forward for CBD merchants, offering them a streamlined process to accept payments. This initiative was launched to address the unique challenges faced by CBD sellers, who often struggle to find stable payment solutions due to the regulatory landscape.
The Square CBD Pilot Program
The Square CBD Pilot Program was the precursor to the current offering, designed to test and refine the platform's capabilities in handling CBD transactions. This pilot phase allowed Square to gather valuable data and feedback from early adopters, ensuring a robust system for the official launch.
Joining the Square CBD Program
Participation in Square's CBD Program is relatively straightforward but requires adherence to specific guidelines. Businesses must ensure compliance with federal and state laws regarding the sale of hemp-derived CBD products. This includes obtaining the necessary licenses and certifications, as well as ensuring that their products contain less than 0.3% THC.
Key Features of the Square CBD Program
The Square CBD Program offers several features that make it an attractive choice for CBD merchants. Here are some of the key benefits:
Comprehensive Payment Solutions
Square provides a comprehensive suite of payment solutions tailored to the needs of CBD sellers. This includes point-of-sale systems, online payment processing, and invoicing capabilities. These tools ensure that businesses can manage transactions efficiently, both in-store and online.
Fraud Prevention and Security
Security is paramount when dealing with financial transactions, and Square's CBD Program is equipped with robust fraud prevention measures. These include advanced encryption protocols and real-time monitoring to detect and prevent fraudulent activity, providing peace of mind to both merchants and customers.
Seamless Integration
One of the standout features of the Square CBD Program is its seamless integration with other Square services. This allows CBD sellers to leverage Square's ecosystem, including inventory management, customer relationship management (CRM), and analytics tools, to optimize their operations.
Steps to Getting Started with Square for CBD Sales
For businesses looking to join the Square CBD Program, the process involves several key steps. Here is a detailed guide to help you get started:
Step 1: Application Process
Begin by applying for the Square CBD Program through Square's official website. The application will require information about your business, including product details and compliance documentation.
Step 2: Verification and Approval
Once your application is submitted, Square will conduct a thorough review to verify compliance with their guidelines. This includes confirming your business's adherence to legal requirements and the quality of your CBD products.
Step 3: Set Up Your Account
Upon approval, you will receive access to Square's payment processing tools. Set up your account by configuring your point-of-sale system and integrating online payment solutions with your website.
Step 4: Optimize Your Sales Strategy
Leverage Square's suite of tools to optimize your sales strategy. Utilize inventory management systems to keep track of stock levels, and use analytics to gain insights into customer behavior and sales trends.
Challenges and Considerations in Selling CBD with Square
While the Square CBD Program offers numerous advantages, there are still challenges that businesses must navigate. Understanding these challenges is crucial for long-term success.
Regulatory Compliance
The regulatory environment for CBD products is continually evolving. Businesses must stay informed about changes in legislation at both the federal and state levels to ensure compliance.
Product Quality and Transparency
Maintaining high-quality products is essential for building trust with customers. Providing transparency regarding product sourcing, ingredients, and lab testing results can set your business apart in the competitive CBD market.
Market Competition
The CBD industry is rapidly growing, leading to increased competition. Differentiating your brand through unique products, exceptional customer service, and strategic marketing is vital to capturing market share.
Conclusion
Square's CBD Early Access Program provides a valuable opportunity for CBD merchants to streamline their payment processing and enhance their business operations. By participating in this program, businesses can overcome many of the challenges associated with selling CBD products and focus on growth and customer satisfaction.
To succeed in the CBD industry, it is essential to leverage the tools and resources available through Square, stay informed about regulatory changes, and prioritize product quality and customer experience. With the right strategy and support, CBD merchants can thrive in this burgeoning market.
