Securing a reputable e-cig merchant account will better position you for financial success.
According to a new study conducted by Grand View Research, Inc., the worldwide vape and e-cigarette market is expected to hit $67.31 billion by the year 2027. A growing number of consumers are becoming more informed about the benefits of smoking “ashless” and “smokeless” tobacco. The benefits of using this type of alternative formulation are considered much less toxic. Unlike conventional cigarettes that produce clouds of cough-inducing smoke, these alternative cigarettes only create a vapor.
More Than A Trend
The switch to vaping has given smokers another means to transition to quitting permanently. Vaping also provides a way for recreational smokers to engage in smoking, with less devastating health consequences.
New vaping devices such as the IQOS MESH, “a puff-activated heating and a low-liquid level detection system”, is expected to further fuel interest and increase widespread adoption of this product.
E-liquid flavors introduced into the market have also spurred interest and provoked growth within the market.
Are Vape And e-Cig Businesses High Risk?
Although using vape and e-cigarettes could be looked upon as the lesser evil twin of conventional cigarettes, the American Medical Association (AMA) is not so sure.
AMA President Patrice A. Harris , MD, MA, had this to say:
“The recent lung illness outbreak has alarmed physicians and the broader public health community and shined a light on the fact that we have very little evidence about the short- and long-term health consequences of e-cigarettes and vaping products,”
Most traditional merchant account providers will simply look away and reject any of your attempts at securing a merchant account with them. They simply do not want to take the risk.
Traditional merchant providers must follow stringent federal regulations, taking extra careful steps to follow specific underwriting rules and procedures.
Finally, since the purchase of these items for most businesses is via an online terminal by using a credit card (card-not-present) this automatically exposes the business to higher chargeback risk.
What Are Your Options To Process Payments?
So now you know the controversial arena you are currently in and the immense difficulty of obtaining a traditional merchant account. So what are your options?
The answer is to find a solid and reliable high risk merchant account provider. High risk merchant account providers are equipped with dealing with a wide range of controversial industries such as escort and gambling businesses.
You need to find a professional high-risk merchant account provider that has an established relationship with banks and acquirers that are sympathetic to the needs of vape and e-cig business owners. This will ensure that you will have a long-term partnership for your credit card processing needs.
Every provider has different requirements to be approved for a merchant account, however, the standards that you must abide by are pretty common, they include:
- You must abide by the most up-to-date FDA regulations for e-cig product sales
- Only sell vaporizers that are compatible with e-juices
- Do not sell vapes that can be utilized with flowered plants or herbs
- Do not display images of Marijuana or Cannabis on your products or website
Seek A Provider That Values Your Business
One cannot deny the incredibly profitable prospect of opening up a vape and e-cig business. The key is to be meticulous in remaining within the federally mandated regulations and stay up to date with these ever-changing laws.
Pair that with a professional and solid high risk merchant account provider who is well-read on these regulations and you have the recipe for success.