The surging popularity of electronic cigarettes is spurring growth as companies that have emerged as important producers of the key ingredient, and is creating opportunity here and elsewhere for storefront entrepreneurs. The many small business owners have have jumped into a market that some believe 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 that 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 are 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 are 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 to your new business.
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