The popularity of electronic cigarettes is steadily growing, and many customers tend to pay with plastic instead of cash. Your business needs to be ready for this influx of business, and by accepting credit card transactions you are one step closer. Not only will accepting credit cards help increase sales, but it can also help reduce the amount of loss if a robbery were to occur.
Choosing the right method of credit card processing is a serious business decision. While it may seem that all processors and banks are alike, they are not. Obtaining a merchant account from a bank can be a tedious task, as many banks are strict on which businesses they will host accounts with. Banks will often delve into the business’s debt, sales volume, and length of time they have been in business. Businesses are often asked by banks to put up money as a safeguard against credit card fraud. Banks also tend to charge terminal fees and software fees, on top of already existing transaction fees. They usually allow businesses to process only one type of credit card. This limits the number of transactions businesses can do, causing harm to the business.
Customers desire the ability to use whichever credit card they have on them at the time of purchase, regardless if it is a Visa or Mastercard. When a customer decides to purchase an electronic cigarette, they want a smooth transaction and not the hassle of being told that their card cannot be used because it is the wrong type. If you decide that a bank is not an option, you can look into high-risk processors. High-risk processors do not arrange merchant accounts through a bank, but rather host the companies themselves. High-risk processors also charge higher transaction fees than banks. However, if you cannot obtain a merchant account at a bank and want to accept credit card transactions, a high-risk processor may be worth the extra charge. Some high-risk processors also allow for internet transactions. This is helpful for customers who are more comfortable purchasing an electronic cigarette online than in person.
Choosing the right bank for processing electronic cigarette sales, as well as any sale, is one of the biggest business decisions you will make. By researching and consulting various methods you are sure to find the best fit for your business and customers.
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