If you have been turned down for an e-cig merchant account by a bank or a conservative credit card processor, you are not in an elite club. Many new as well as existing e-cig merchants are finding themselves in the same boat and trying to figure out why. What have they done wrong?
These merchants have done nothing wrong except chosen to sell a product that is considered to be high risk. This does not mean the processors think the product itself is risking the health of the users because the jury is still out on that issue. Processors feel that the e-cigarette industry as a whole is high risk.
At this time it is against federal laws to electronic cigarettes to minors. Anyone caught could be shut down. This makes the business high risk. Some makers have resorted to deceptive marketing practices even with the popularity of the product growing exponentially every month. That combined with high chargeback percentages place the industry in the high risk category. It used to be that anyone selling e-cigs online would have to look for a very expensive off-shore processor to take their VISA and MasterCard sales. That is not the case today.
Businesses with e-cig merchant accounts will not only sell the electronic cigarettes on line, but they will also make vaporizers and liquid nicotine for refills available as well. There are secure gateways and shopping carts that facilitate the sales, only the conservative processors and big banks just will not allow a high risk merchant to join their ranks – even if the owner has stellar credit.
Even worse, there are companies who originally opened their e-cig merchant account with a processor and discovered they were being dropped because the industry was now being ranked as high risk. When the accounts were closed, the funds were frozen. The merchant was out the cost of the inventory and many found themselves with cash flow issues that seriously hampered their livelihood.
The good news is that there is a company that specializes in e-cig merchant accounts as well as all other high risk accounts. The application process is easy and transparent. Approval time can take as little as 48-72 hours. And you do not have to have a great credit score. They look at the whole picture and not just an arbitrary number. And there are no application fees.
Unlike the off-shore e-cig merchant accounts, processing rates are fair and equitable. Merchants are guaranteed safe, secure payment gateways. Plus, merchants are not required to have their own VISA and MasterCard registration. Merchants must, however, keep all chargebacks under a three percent threshold.