Help Your Business Keep Up with Explosive E-Cig Market Growth

Jul 23, 2018

Do you own an e-cigarette business? If so, you can expect massive growth in the e-cigarette market in years to come. A new research report by P&S Market Research has revealed that the global e-cigarette market is forecasted to attain a value of $70 billion by 2023 – up from a market size of $15 billion in 2017. This same report credits an increasing demand for smokeless and ashless vaping and the surge in the number of vape shops and designated stores as the drivers of this growth.

The e-cig market can be broadly categorized into: cig-a-like, vape mods, vaporizer and t-vapor product types. During the forecasted period, t-vapor is expected to experience the fastest growth of around 45%. A new category that uses real tobacco, t-vapor products are sold into two versions: heat-not-burn and infused. Of the major distribution channels, vape shops are projected to be the most successful.

The e-cigarette market in the U.S. is not the only one that has been tremendously successful. As of right now, the Asia-Pacific region has ample growth opportunities for e-cig vendors. In addition, China was shown to be the third largest e-cigarette market (after the U.S. and the U.K) globally in 2017, with an estimated 40.3%.

The E-Cigarette Market’s Biggest Challenge

It has been hard for e-cig merchants in the U.S. to secure the business funding and payment processing solutions they need. Unwilling to work with the risks of the e-cig market, banks turn these merchants away. Without these services, they are left with little to no cash to grow and no way to safely process customers’ payments. Seeing this ever-growing need, alternative lenders like EMerchantBroker.com have stepped in to offer a solution: the e-cigarette merchant account.

What is an E-Cigarette Merchant Account?

An e-cigarette merchant account offers a far, cost-effective payment solution. This account is specifically tailored to meet the needs of the e-cig industry and the many challenges these business face (e.g. ongoing regulatory changes and the high chargeback ratios). As a high-risk merchant account provider, EMB specializes in working with the e-cigarette industry. A dedicated team of experts guide merchants through the simple, hassle-free application process. Merchants are approved in as little as 24 hours. While other accounts may involve certain limits (e.g. funding delay, a monthly credit card cap, a rolling reserve, etc.), EMB can remove these limits after the first three months.

E-Cigarette Merchant Account Requirements

Unlike working with a traditional provider, EMB’s application requirements are easy and straightforward. To move swiftly through the application process, you should have this short list of items on hand:

  • A valid, government-issued ID (e.g. driver’s license)
  • A bank letter or a pre-printed voided check
  • 3 months of the most recent bank statements
  • If applicable, 3 months of the most recent processing statements
  • A social security number (SSN) or employer identification number (EIN)
  • Chargebacks must be under 2%

Once you have submitted an application, you will hear back in 24 to 48 hours. The streamlined application process ensures your business can quickly secure the cash and payment processing services it needs. Fund your business’ growth and offer your customers multiple payment processing options. With EMerchantBroker, you can expect:

  • No application fees
  • Competitive rates
  • No Visa/MasterCard required
  • Multiple Secure Payment Gateway Options

The e-cigarette market is not only booming but will continue to do so over the next several years. Make sure your business has the tools and solutions it needs to take advantage of the many opportunities that will come your way. To learn more about our e-cigarette merchant account, contact our team of experts 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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