FDA Regulations Leave E-Cig Merchants in Limbo!

Aug 11, 2016

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.

Let us help you get a high risk merchant account 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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