For years, some mainstream merchant account providers have processed e-cig merchant accounts. While not all did so, some did, as this “high risk” industry could function as any other in terms of the government and its regulations. Recent changes have caused an uproar: E-Cigs are now stuck into the “high risk” category – and many mainstream retailers will be stuck looking for a new merchant account thanks to new FDA regulations. These regulations include the prohibition on sales of e-cigs, vapors, and other e-cig related products to those under 18 years old – just like tobacco. This puts a hold on many in the industry – especially those who are now looking for an electronic cigarette merchant account.
Arguments will be plenty in regards to these new regulations, which also include the prohibition on free samples of vapes to those under 18. Yes, even to give free samples you now have to ID people. Eh. But, some claim that this helps keep kids off tobacco – which is odd, since more and more tobacco users are turning to e-cigs are a healthier and cheaper alternative. These changes affect everyone – but perhaps none more than e-cig merchants who are at risk of losing their merchant accounts.
Don’t panic! That’s the worst thing that you can do. Panicking leads to bad situations, such as closing out your merchant account and doing this alone. It never works, because there are so many regulations that you must keep up with, not to mention chargebacks. Oh yes – the dreaded chargeback. Too many of these will leave you with your head spinning, but a high risk merchant account processor like EMB deals with these daily, so they are not a big issue. A high risk merchant account provider is what you need to look for when it comes to switching your electronic cigarette merchant account. Make sure that your prospective provider understands your industry, and have experience. With rapid changes, the e-cig industry is unique, and you need an experienced high risk merchant account provider to house your accounts.
The FDA’s new regulations on e-cig merchants can cause panic, but don’t! Search for the right electronic cigarette merchant account provider for your company, because not all are created equally.