E-Cig Shops Take Notice of AB-1500’s Impact

May 27, 2014

E-Cig and “vape” shops are all the rage, and lawmakers are taking notice. In California, they have proposed AB-1500, which easily passed the lower state house, yet stalled in the upper house. This is great for those who are looking into becoming an e-cig merchant. However, there still are issues at hand, and having the right merchant account provider will help ease your worries.

While e-cigs are huge sellers, there are many who worry about their effects. E-cigarettes, which turn liquid nicotine into an inhalable vapor, are a growing public health worry. Though proponents claim they are safer than ordinary cigarettes because they do not generate tars and toxins like burning tobacco, research on their health risks has barely started. Thus, many citizens and lawmakers are pushing for tougher regulations on the industry. AB-1500 pushed for no sales to those under the age of 21. However, tobacco cigarettes (except for New York) are available for sale to those who are 18 years old, and in many European countries, 16 years old. The bill also pushed for a ban on free samples of vapors, and the buyer must sign for the package when it arrives. This would mean that someone would have to take the day off work and wait for the mail carrier. That part of the bill was a turn-off to many.

Those in the e-cig industry have supported bills to ban the sales of e-cigs and their vapors to those under the age of 18, as is the norm for tobacco cigarettes. The under 21 ban and the signature on delivery, however, was not a very popular idea. Thus, the bill failed. 10 of the 17 on the committee did not vote on the bill. While this is good for e-cig merchants, it brings up the point that this will happen again. The only problem is that these types of bills for try to be passed in the future. For this uncertainty, you will need a reputable, skilled, and knowledgeable merchant account processor.

E-Cig shops dodged a bullet when the AB-1500 failed to become law. However, this is more than likely the first of many bills that will be brought forth to restrict the use and purchasing of e-cigs and their vapors. To be sure that you and your e-cig business are on top of all the new rules and regulations, be sure that you have a merchant account processor that specializes in e-cig accounts.

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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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