Payment processor drops THC drink brand days before federal ban

Square, a major payment processor, cut off 45% of the revenue stream for a Denton-based beverage company on the afternoon of Nov. 8, one day before the founders discussed their impending shutdown. Michael Williams, co-founder of Wild Revival, received an email from the platform stating it would stop processing transactions for the business due to a new federal ban taking effect in December.

The federal rule, which begins Dec. 11, prohibits the sale of hemp-derived products containing more than 0.4 milligrams of THC per container. Wild Revival currently sells beverages with 10 milligrams, 25 milligrams, and 50 milligrams of THC. Williams noted that he could not imagine manufacturing a 0.4 milligram product, describing the new threshold as a directive that would put the company out of business.

Williams and Andrew Martin, Wild Revival's co-founder, operate as both brand owners and manufacturers. Martin stated that the company invested personal funds into building manufacturing plants. He said that under the current federal legislation, the company faces no path forward. The two men run the Wild Revival and Hi-Res brands, relying on their own production facilities rather than outsourcing.

Martin emphasized the financial stakes, noting that 95% of the company's revenue is derived from cannabis-based products. He stated that losing the ability to generate that income would place the business in a very hard position. The company’s reliance on its own manufacturing infrastructure compounds the risk, as the founders have sunk capital into physical assets that may soon be idle.

New state restrictions on THC earlier in 2026 already eliminated a large portion of the smokable hemp market. Industry participants believed that makers of THC drinks had secured a safe harbor from those state-level changes. The new federal ban closes that gap, extending the prohibition to beverages and other hemp-derived goods across the country.

Williams expressed hope that the rule might be reversed before the Dec. 11 deadline. He pointed to elected officials who won on Nov. 3 and will take office next year. Many of those candidates campaigned on the idea that the industry grew in good faith and is composed largely of small businesses. Williams argued that these new officials were elected partly because of this sentiment.

The payment processor’s move illustrates the immediate operational friction companies face in the weeks before a regulatory deadline. Williams described the situation as timely, given that the email arrived the day before the interview. Small businesses in the sector are now scrambling to find alternative ways to process payments or restructure their operations before the new federal limit takes hold.