Kratom transactions are categorically prohibited by Square, just like they are with PayPal. I am banned from both platforms permanently for selling kratom before they caught on back in early 2019. In my defense, it is not expressly written anywhere in any of their policies. It is instead supposed to be inferred from some of the rules relating to psychoactive substances or ones that imitate the effects of recreational drugs.
Keep in mind, these companies reserve the right to terminate your account at any time, even for no reason at all. When they do cancel you, which they inevitably will, they hold hostage all of the money in your account for 180 days (the max allowed by law).
On top of Square's restrictions, Visa, Mastercard, American Express, and Discover all prohibit kratom transactions at their level, so even if Square decided to allow it, the actual card companies would refuse. This is a major problem in the kratom industry and the reason that most vendors don't accept card payments. It's why you see so many vendors pushing Zelle, Venmo, e-check, and cryptocurrency payments.
All of that said, there are actually some options out there. You can go with an offshore card processor, but you've got to accept all the implications of that. Alternatively, there are domestic options that involve sort of workarounds that I can't get too specific about at the risk of exposing the methods to the wrong person. My company has been using a very solid one for quite a while now, though the rates are high (6.5%). I can't mention the name here, but just know that domestic options exist if you look hard enough.
TL;DR - Yes, kratom transactions are strictly prohibited by Square, PayPal, Stripe, 99.9% of domestic banks, and by all the major card companies, even though it is legal.
