According to MarijuanaMoment, Square recently “quietly” launched a program for cannabis company credit card processing.
They wrote: “Companies that sell cannabis products — even those consisting of CBD derived from hemp, which was legalized in the US through the Farm Bill late last year — are continuing to have trouble accessing basic financial services that are available to businesses in other sectors. That includes being able to maintain bank accounts and process their customers’ credit cards.”
The CBD segment of the cannabis industry may be joining said “other sectors” soon, however, because the small business-focused mobile payment processing company — Square — is currently conducting an invite-only beta for some CBD products. This comes after a long history of refusing to work with CBD companies.
Unfortunately, Square is currently unable to support the sale of these products. If Square becomes able to support businesses selling CBD, we will announce it.
— Square Support (@SquareSupport) December 13, 2018
But no longer. Square’s beta, in fact, comes at an opportune time.
On March 14, the US Bank subsidiary Elavon announced it would be closing accounts for companies selling CBD products, which it had previously handled payment processing for. In spite of camp and CBD being legal, Elavon had “recategorized hemp and cannabidiol-based merchants as a prohibited business type.”
At the same time, politicians are pushing for further liberalizing cannabis policy, including encouraging various federal agencies to offer relevant guidance for hemp and related businesses.
Per MarijuanaMoment, Senate Majority Leader Mitch McConnell and Senator Ron Wyden wrote in April: “While some financial institutions have agreed to offer financial products to the growing hemp industry, many of them have not due to confusion over the legal status of hemp… However, as hemp is no longer a controlled substance, financial institutions should feel secure in engaging with this industry.”
As such, Square’s entry into the CBD space comes at a time where federal legislation is poised to allow broader access to financial services for cannabis businesses — and people are so grateful. Morgan Fox, media relations director for the National Cannabis Industry Association, even praised the Square for taking the step.
“Forward-thinking companies are stepping in to fill the gap created by outdated federal banking policies, and helping address the problems caused by a lack of financial services in the cannabis industry,” Fox stated via MarijuanaMoment. “Lawmakers should take heed and open this space to all financial institutions.”
Good for Square, but here’s the thing. Though Square may certainly be being so progressive and “forward-thinking” by opening its convenient, familiar services and cute hardware to a small sliver of recently legalized cannabis-adjacent businesses, they are being strategic and financially savvy too. Never forget that Square is in the business of doing business, just like big weed overall.
Oh, and also don’t forget the porn and panty selling and the like are also legal businesses in the business of doing business — and have been for some time. Don’t hold your breath for a quiet porn processing beta from Square coming any time soon though.
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