E-Cigarettes and You: What You Need to know before Opening an E-Cigarette Merchant Account

Apr 28, 2014
Credit card terminal

There’s a new frontier in the world of smoking. Vapor-based technology such as vaporizers and e-cigarettes are steaming up politicians, concerned citizens, and entrepreneurs alike as the new industry grows at an exponential rate. High-risk merchants looking to open e-cigarette merchant accounts are at the forefront of the swirling argument over vapor-based technology.

Opposite Arguments

Opponents to e-cigarettes and vaporizers argue that they act as a gateway to cigarettes. Yet, proponents of e-cigarette technology point to the multitude of smokers that are abandoning traditional combustion-tobacco products in favor of vapor-based smoking.

Traditional cigarettes provide a limited scope of customization and flavor to the smoking experience. While sophisticated vaporizers and e-cigarettes can provide multiple ways of heating a blend, different add-ons for inhalation, and different flavored blends. With control over the heating apparatus, many smokers find e-cigarettes to be a preferable alternative.

As an added benefit, vaporizers and e-cigarettes eliminate the most harmful byproduct of cigarettes to others: second hand smoke. This has, until recently, allowed vapor technology to be used in places where cigarettes can’t: clubs and restaurants.

Legislation

Due to the void of FDA findings and standards for vapor-based technology, the Fed has been sluggish in legislating this new industry. Many local governments and state governments have taken it on themselves to begin legislating this new industry. If you have an e-cigarette business or merchant account then you must monitor the news in your city and state closely.

Due to a lack of FDA research, there’s currently a ‘gray zone’ for e-cigarettes. Those in favor of restricting e-cigarettes point to the worst-case scenario over the lack of facts while those in favor of keeping e-cigarettes de-regularized have essentially the same argument: there’s no proof or ruling either way.

The Research Void

The industry is so new, trials and studies simply haven’t had sufficient time to complete their findings. The lack of standards for the industry provides the best arguments for both sides. Is it possible for e-cigarettes to be harmful to your health? Yes. It’s up to the manufacturers and suppliers to ensure there aren’t harmful substances in their blends. Are e-cigarettes in most cases healthier than traditional cigarettes? Probably. It again depends on where your products are coming from.

Until the FDA completes its research and rules one way or another, the industry will remain high risk and merchants will continue to seek out specialized e-cigarette merchant 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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