Discover how California's new CBD regulations impact the industry and payment processing. Learn how Signature Payments helps businesses stay compliant and adapt to changes.

Navigating California’s New CBD Regulations

Aug 5, 2026 | Payments

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California’s CBD industry faces significant changes as Governor Newsom pushes for new regulations aimed at protecting consumers and preventing youth access to intoxicating hemp products. These changes will profoundly impact the industry and businesses’ ability to process digital payments in California.

In this blog, we’ll explore the upcoming changes in CBD regulations, how they will affect the industry, and how Signature Payments stays ahead of the game by staying on top of all regulation changes related to CBD and payment processing in California.

Background on California’s Hemp and CBD Regulations

Before the new emergency regulations proposed by Governor Newsom, California allowed hemp-derived CBD products to contain up to 0.3% THC. This was in line with the federal 2018 Farm Bill, which defined hemp as “the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.”

In California, the regulation of hemp-derived products was primarily governed by the California Department of Food and Agriculture (CDFA) and the California Department of Public Health (CDPH). The CDFA’s Industrial Hemp Program regulated the cultivation of industrial hemp. At the same time, the CDPH’s Manufactured Cannabis Safety Branch (MCSB) oversaw the manufacturing and testing of cannabis products, including those derived from hemp.

The Upcoming Changes in CBD Regulations

Establishment of a minimum age of 21 to purchase hemp products
No detectable levels of THC or other intoxicating cannabinoids per serving of hemp-derived food, beverage, or dietary products intended for human consumption
Limiting the number of servings of hemp products to five per package

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This Will Have an Impact on the CBD Industry and Merchant Payment Solutions

Signature Payments understands the evolving CBD landscape and the challenges businesses face in processing digital payments in California. Our underwriting teams have several banks to choose from if one changes its protocols, ensuring our clients can maintain consistent payment processing despite regulatory changes.

By partnering with Signature Payments, CBD businesses can stay compliant with state and federal laws while enjoying reliable payment processing services. Our team is dedicated to staying informed about the latest developments in CBD regulation and helping our clients adapt to changes as they occur.

Pros and Cons of the New CBD Regulations Pros:

Pros:

Increased consumer safety and protection
Reduced risk of youth access to intoxicating hemp products
Greater clarity and consistency in regulatory requirements

Cons:

Potential loss of access to products used for medical purposes
Increased burden on businesses to comply with new regulations
Possible market disruption and loss of revenue for some businesses

Steps to Take Now

Review your current product offerings and determine if any will be affected by the new regulations.
Implement age verification processes for hemp product sales.
Stay informed about the latest developments in CBD regulation.
Partner with a payment processor like Signature Payments that understands the evolving CBD landscape

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FAQs

1. How will the new CBD regulations affect my business?

The new regulations may limit the types of hemp products you can sell and require you to implement age restrictions for purchases. It’s essential to stay informed about the changes and adapt your business accordingly.

2. Can Signature Payments help my business navigate these regulatory changes?

Signature Payments’ underwriting teams are well-versed in the evolving CBD landscape and can help you stay compliant while maintaining consistent payment processing.

3. How can I ensure my business is prepared for the upcoming changes in CBD regulations?

Stay informed about the latest developments in CBD regulation and work with a payment processor like Signature Payments that understands the industry and can help you adapt to changes as they occur.

Conclusion

The changing landscape of CBD regulations in California presents challenges and opportunities for CBD businesses. By staying informed and partnering with a payment processor like Signature Payments that understands the evolving regulatory environment, you can ensure your business remains compliant and continues to thrive in the face of change.

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