Cigar Sales Are On The Rise

May 15, 2017

The global market for cigars is expected to account for 19.9 billion by 2020 because of less stringent regulatory environment and tax policies, which cannot be said about cigarettes.

Cigar Industry

The economic climate in the majority of regional markets all over the world has led to improved sales of small cigars and cigarillos. Manufacturers are paying great attention to mass market strategies with the aim of gaining profits. The launch of cigars in kid-friendly flavors like chocolate, candy and fruit appeared as a key trend in the market with the purpose of attracting youth and young adults.

The thing that cigars have been “premiumized” in certain markets or they were made more appealing to consumers by emphasizing their superior quality and exclusiveness resulted in demand for large size and premium branded cigars. Cuban cigars are considered the top segment in the premium cigar market. There is an increased demand for Cuban cigars in China, Europe, and the Middle East.

Merchants in the cigar industry interested in a reliable and low-cost cigar merchant account should consider turning to (EMB). EMB is the nation’s #1 high risk payment processor and offers the best high risk merchant services in the industry. EMB boasts an A+ rating with the BBB and has an A rating with Card Payment Options.

Cuban Cigars

Sales of Cuban cigars jumped 5% in 2016, reaching $445 million.

According to Manufacturer Habanos, which makes brands such as Cohiba, Monte Cristo, and Romeo y Julieta, 2017 is expected to witness moderate sales growth. Habanos dominates the global market for hand-rolled, premium cigars except in the US because of Washington’s half-century trade embargo against Cuba. The US is the world’s largest cigar market.

Vice President of Development Javier Terrés has noted they are quite happy they were able to grow during really challenging times.

According to Habanos, better relations between the US and Cuba have resulted in a boom in tourism, which, in its turn, has led to increased cigar sales in Cuba. The number of visitors to the island grew 13% in 2016.

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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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