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Online CBD Website sales have A LOT of restrictions. Do you know them all? Are you compliant with the rules and regulations that are required in order to sell CBD on your website?
If you’re only using the open-source WooCommerce software, you don’t have to worry about these guidelines. Because WooCommerce is open-source software, we don’t limit its use unless other Automattic (the company behind WooCommerce) services are involved.
These guidelines apply to store owners who’d like to use other services offered by Automattic like Jetpack, WooCommerce Shipping, or WooCommerce Tax to sell cannabidiol (CBD) and other hemp-derived products online.
If you’d like to use any Automattic services in addition to the open-source WooCommerce software, we require you to use Square as a payment provider. Square has a program that reviews and approves stores selling CBD and hemp-derived products according to applicable laws and regulations. Sell CBD products with Square.
Square’s program is currently only available in the United States. If you’re operating a store outside the US, you’re still welcome to use the open-source WooCommerce software, but we cannot offer any other Automattic services, like those listed above.
Find out more at WooCommerce and Highly Regulated Products about selling CBD and other hemp-derived products with a different payment provider, including if your store is outside the US.
These guidelines are not intended as legal advice. The laws and regulations on CBD and other hemp-derived products are complex, so we strongly recommend seeking legal advice in the state or country you’re selling from, as well as the one(s) you’re selling to before setting up shop.
As the store owner, It’s your responsibility to understand and follow the laws and regulations that apply.
Square has a vetting process for stores selling CBD and other hemp-derived products, so we currently require Square as the payment provider if you’d like to connect your store to Jetpack, WooCommerce Tax, and WooCommerce Shipping. WooCommerce may approve additional payment providers in the future.
You can still use the open-source WooCommerce software to power a store that sells CBD or other hemp-derived products, but you can’t take advantage of Jetpack, WooCommerce Shipping, WooCommerce Tax, or other Automattic services.
Currently, the fees for Square for CBD processing are below. This is as of February 26, 2020. Please visit Square’s website for current pricing. The fee you will encounter on your website is the “Online and In-App” percentage.
4.2% + 30¢
Per Transaction
3.9% + 10¢
Per Transaction
4.8% + 15¢
Per Transaction
Square requires time to vet new sites before approving them to sell CBD and other hemp-derived products, due to heavy regulation of the hemp industry.
Check with your bank! Different banks have different policies on this. Once you’re approved by Square, you’ll need a bank that will ultimately accept payments.
Local laws in certain states or cities can be more or less strict than federal law. Be sure that your products are legal to sell in the location of your store and of your customers.