Lack of Regulation Makes it Easy for Teens to Order E-Cigs

Mar 20, 2015

Right now 41 states prohibit online e-cig sales to minors, but a new study finds that despite these laws minors are still able to order e-cigs with little to no resistance. This makes many health advocates worry about the potential of teen addiction to electronic cigarettes. They note that the aim for anti-tobacco groups has been to stop the devastating health issues faced by long term tobacco use. They fear that unfettered access to e-cigs will create lifelong e-cig addicts, creating the same health crisis as tobacco.

Due to the absence of federal regulation, e-cigarette sellers are essentially working off of the honor system when it comes to policing who buys their products. Identity verification software is available that acts as a barrier to illegal purchases made by minors. Even though this software exists, many online retailers choose not to install it. Rebecca Williams, a leading e-cig researcher, coordinated a study where 11 minors placed 98 illegal online orders. A total of 75 were successful, and of the 23 that failed, only 5 were the result of age verification software. And of the packages that were delivered, 95 percent were left on the doorstep unsigned.

While most health advocates know that software will not stop the most persistent of teens from ordering e-cigs, they note that responsible vendors should utilize the software to act as a deterrent. Unfortunately, if an e-cig manufacturer is unwilling to adopt age verification software or other similar measures, there is little the law can do if the vendor operates from a state without regulation.

It is for this reason that many health advocates are pushing for cohesive federal regulation that holds all vendors, regardless of location, to the same standards. Until this happens, they believe, the burden will fall on local legislators, law enforcement, and the general community.

The e-cig industry has become a billion dollar industry in only a few years. E-cigs sales are predicted to outpace traditional cigarette sales this year.   eMerchantBroker.com is the number one online payment processor to manage your e-cig merchant account. Learn how an electronic cigarette merchant account can boost your profits and customer base by contacting us 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 on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

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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.

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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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