Companies that sell cannabis products—even those consisting of CBD derived from hemp, which was legalized in the U.S. 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 latter problem could be solved under a new pilot program that has quietly been launched by the payment processing service Square.
When asked about the reasons for the launching the new program, which comes after years of refusing to work with CBD companies, the spokesperson said that the company closely watches evolving public policies and strives to create new opportunities for clients.
In any case, Square’s beta effort comes just at the right time for businesses in the growing CBD space. This month, US Bank subsidiary Elavon, which has until recently handled payment processing for companies selling products with the non-intoxicating cannabis compound, is moving to shutter those accounts.
Published: May 23, 2019
Founder & Interim Editor of L.A. Cannabis News