Cigar High Risk Merchant Accounts

Jan 31, 2018

The statistics that exposed non-combustible tobacco forms are much less harmful than combustible types have speeded the shifted to electronic cigarettes. However, custom pipes, vapes and luxury cigars are still high on demand. This explains why the tobacco industry stays strong regardless of its high-risk nature.

But sometimes the stringent state regulations, the complexity of selling tobacco online and extreme chargebacks can put your business account at the risk of cancellation. That’s why wants to help you navigate the intricate aspects of these regulations and get you the most excellent cigar merchant account.

Common Challenges Micro-businesses Face When Seeking Cigar Merchant Accounts

Shopping for merchant accounts for tobacco-related businesses can be very frustrating. While you won’t readily set up payment processing, it is essential in the development of your company. Discover some legal challenges tobacco businesses face;

  • Strict Federal Regulations
  • Selling tobacco online
  • Extreme Chargebacks
  • Ever-changing laws and regulations

What Type of Financial Partner Should You Choose?

A competent account provider should put up payments for nearly all types of tobacco companies whether in-store or online and provide a custom lowly service rate, and sometimes, business funding when you’re in need. Be sure to ascertain a merchant account issuer has all the above characteristics before you start conducting business with them.

You also want to work with a financial partner who will be at your disposal when you need them, provide steadfast security and have flexible pricing models when your company needs a unique tweak. Dependable customer service is a must. Plus, don’t enter deals that will soon be called off when you’re just getting ready to begin growing.

How resourceful is your account issuer? Will they provide a complete package inclusive of everything including installing payment processing for you? These are some key aspects to inquire about when picking an account and payment service provider.

Enjoy Fast Application and Acceptance

Acquiring merchant accounts for a cigar business today shouldn’t last long like it used to. The process has been simplified to ease the hassle for startups. Online applications won’t even last 10 minutes, and if you prepare all the few legal requirements in advance, you can have your account functional within 24 hours.  Most times the credentials include;

  • A valid ID—driver’s license
  • Voided Check or bank letter
  • Recent bank statements ( for the last three months)
  • A Social Security Number or Employer Identification Number

Lastly, adhere to all other legal regulations to smoothly pass the underwriting process.  You don’t want to fail this last step because of mere failure to meet some seemingly minor state standards.

Wrapping Up

For a cigar merchant account, never waste your valuable time visiting traditional banks because they’ll reject you. Therefore your best choice is to consult with a high-risk credit account provider and credit card processor.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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