Restricted products for card-not-present transactions

About card-not-present transations

To comply with our Payment Terms, certain products are prohibited from being sold via card-not-present (CNP) transactions. This article highlights the guidelines around selling prescription-required items to help you stay compliant and avoid disruptions. 

Before you begin

A card-not-present (CNP) transaction occurs when the cardholder does not present the card physically for payment. In other words, if the card is not dipped, tapped, or swiped, then it is a CNP payment. This includes online, phone, or invoice payments and can also apply to certain transactions, such as Customer Prepayment for Square Appointments.

Key guidelines

Review the key guidelines for sellers offering prescription-required items or services:

1. In-person payment requirement for prescription-required items or services:

   • You may not process CNP transactions for items or services involving products that require a prescription.

   • Payments for these items may only be made in person when the item is purchased or the service is provided.

2. Noncompliant forms of CNP payments:

   • Any form of card payment that is not dipped, tapped, or swiped if the item or service contains prescription-required products violates our terms and may result in deactivation.

   • These include prepayments and Square Invoices, which are considered CNP payments and should not be used for any item or service that contains prescription-required products.

3. Online content compliance:

   • Ensure that your website and booking content accurately describes the in-person payment requirement for any prescription-required items or services referenced on your site. This helps ensure that your site does not provide false or misleading claims.

4. Warning and deactivation:

   • Violations of our terms of service may result in warnings, deactivations, and fines.

   • Sellers who operate mainly online with prescription-required products may be deactivated immediately.

See the Square General Terms of Service and Payment Terms to learn more.