Clarification on AB 2991 Compliance – Square Bill Pay & Alcohol Vendor Payments

[Almir]

Dear Community Notes Team,

I’m reaching out regarding California Assembly Bill 2991, which is scheduled to take effect on January 1, 2026.

I recently opened a Square Checking account to streamline all my business payments, and so far, it’s been a mostly positive experience. However, I’ve begun receiving notifications from my beer and wine distributors about this new legislation.

They’re asking that I either create payment profiles through their internal portals or utilize third-party platforms like Fintech to process payments.

From my understanding, AB 2991 mandates that alcohol retailers must pay wholesalers exclusively via electronic funds transfer (EFT), and that payments must be initiated by the distributor?

Can you please confirm whether Square’s ACH Bill Pay system qualifies as a compliant EFT method under this new regulation?

More specifically, I’d like to know if I will still be able to pay my alcohol vendors using Square’s Bill Pay platform once the law is in effect, or if any adjustments will be required on the Square Checking side.

Thanks in advance for your time and support!

[VanKalkerFarms]

ACH should be considered a EFT method as it is fully electronic. @Square would have to chime in on this if it meets the regulations but I don't see how it wouldn't as just a quick google has multiple sites saying ACH is a form of EFT.

It is definitely getting more complicated for all businesses as different states keep passing new rules and regulations on many things businesses do that now differ from state to state.