Electronic Cigarettes Prompt Tax Questions

Jul 25, 2014
mvweff-b781211162z.120131107064323000gvf1gqh0a.2The electronic cigarette business is booming with new brands of e-cigarettes and different flavors to fill the cartridges. With the popularity of this product rising every month, the market value is in excess of $2 billion.

This makes the e-cigarette market a very popular business to enter, having customers ready to purchase the different options available. However, making payment options easy for your customers is important; consider applying for an electronic cigarette merchant account.

Putting a proposal for a merchant account is going to allow your customers to purchase items from you using their debit or credit cards, this can quickly increase the potential sales. However, if you consider an on-line business, this is more high risk and you would benefit from finding a merchant account that deals with a high-risk application; this prevents wasting time and having to deal with a rejection. Some merchant account supplier’s aren’t looking for high risk businesses, they have the potential to lose money and this makes the risk high, a high risk merchant account will increase the fees charged for the service to cover any potential loss.

What is important in the e-cig market is to consider the government position in relation to the amount of tax claimed, currently the e-cig doesn’t fall under the same guidelines as cigarettes, but that is likely to change because of the amount of money the industry is currently making.

Making them a target in future with rises in taxes, this the right time to get into the e-cig market as a potential business opportunity.

Regulations will have the potential to slow down this market, currently the growth and popularity of the e-cig is amazing. There are recommendations for using it as an alternative to smoking or as a way to quit smoking cigarettes. There is still some harm from ingesting the nicotine and other chemicals, but they are less harmful than tobacco.

Until there are long-term studies done on the effects of the e-cig on the body, there are no answers for these questions, but what is going to happen is an increase in tax paid on these products.

Therefore, it is not up to business owners to worry about the future implications of the e-cig, but to understand its current potential in the retail market.

For an electronic cigarette merchant account call 1-800-621-4893 or click on the button below

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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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