How to Run an E-Cig Shop

Feb 11, 2014

The surging popularity of electronic cigarettes is spurring growth as companies have emerged as important producers of the key ingredient and are creating opportunities here and elsewhere for storefront entrepreneurs. The many small business owners have jumped into a market that some belief will eclipse that of traditional smokes within a decade. However, obtaining an e-cig merchant account can be tricky, due to the newness and uncertainty of the e-cig craze.

The e-cig industry could soon change dramatically. To this point, it has been more or less the Wild West, with production and sales totally unregulated. Now, though, the U.S. Food and Drug Administration is poised to step in with as-yet undisclosed rules under its authority to oversee tobacco-derived products. That could shake up the business models of the Internet-based vendors and tiny, home-based juice-makers that have sprung up over the last few years. E-Cig regulation is headed one of two ways: Either overall acceptance or an overall ban.

E-cigarettes are battery-powered devices with a heating coil that turns a nicotine-containing liquid into a vapor the user inhales. “Vaping” generally is cheaper than smoking and, advocates say, safer because it does not produce the tars and many of the harmful substances found in cigarettes. Critics, however, say the vapors contain dangerous chemicals, and that research on e-cigarettes is needed. The U.S. Centers for Disease Control earlier this year said that while the products appear to have far fewer of the toxins found in smoke compared to traditional cigarettes, the impact of e-cigarettes on long-term health must be studied.

The vast majority of merchant accounts that will accept e-cig merchants will place the business into a “high risk” category. There is no shame in this label, and it should not project badly on your business. It simply means that the type of business is more prone than others to closing sooner than companies that are more traditional. While it can be hard to find a merchant account processor with decent rates for “high-risk” companies, it can be done. All it takes is some patience and research. While it is easy to be wooed by the newest terminal technology, be sure to look at your rates with each company.

The e-cig industry is booming, and it is not yet known if it is here to stay, or if it is simply a fad. Regardless, right now e-cigs is a moneymaker, and a great way reason to start up a small business. With a little initiative, patience, and research, you are sure to find an e-cig merchant account that will not only provide great rates but also provides support for your new business.

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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 on 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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