Aug 08, 2014

E-cigs – An Exploding Industry

ECIG-articleLargeElectronic cigarette sales have been exploding across the United States. By 2017 they are expected to reach over $10 billion annually. Though there is much debate regarding the regulation and distribution, parties on both sides of the fence can see that the economy will expand as a result.

Electronic cigarette sales have been steadily increasing over the last years. Analysts predict that sales from e-cigarette products could even surpass tobacco sales within the next ten years. With sales projected to top $1.5 billion this year, it is becoming obvious that this industry is booming. Business owners feel that they are helping the economy by providing jobs and sales. Businesses are seeing exploding sales which can be processed easily with an e-cig merchant account.

Lawmakers and regulators were seemingly caught off guard with the success of the industry. The rapid growth has sent them scrambling to figure out legislation and regulation for electronic cigarette based products.

The rapid growth has also caught the attention of industry leaders who have recently banded together to represent the interests of the industry. The Smoke-Free Alternative Trade Association was created in 2012 and is composed of companies with interest in the electronic cigarette and vaping industry. This year alone SFATA added 102 members making its total 171 companies.

It is clear that there is a major market for this industry. With billions of dollars at stake the SFATA seeks to represent the industry and ensure that growth is not stagnated by any new regulations. The SFATA however does support the ban of sales of products to minors and efforts to standardize the products and labeling. What the organization does not support is using the same regulations for electronic cigarette products as traditional tobacco.

The Food and Drug Administration found inconclusive results regarding the health implications of e-cigarettes, though it plans to impose regulations related to the manufacturing and sale of e-cigarette products.

If you’re in the market for an e-cig merchant account, contact us 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 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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