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 emerchantbroker.com 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.
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.