Lawmakers Pressing FDA: Need an E-Cig Merchant Account?

Jul 27, 2018

A group of US Senators questioned some of the decisions taken by the FDA. According to them, the agency must reconsider its decision to delay a review of vaping products. Besides, they asked the FDA to explain other regulatory decisions in relation. To learn more about this and know how you can obtain an e-cig merchant account easily and affordably, keep on reading below.

E-Cig Consumption and Regulations in the US

The Senators expressed their concerns about vaping products that’re gaining more and more traction with adolescents. They named products like JUUL and e-liquid flavors regarded as child friendly such as “cotton candy” and “gummy bear.” The Senators noted these products were being marketed to children and teens.

Scott Gotlieb, the Food and Drug Administration (FDA) Commissioner, a medical doctor having survived cancer, finds that all flavored tobacco should be banned, including flavors for e-cig devices considered less harmful.

According to the Centers for Disease Control and Prevention, over 2 million middle- and high- school students used e-cigs in 2016. The FDA finalized a rule (effective August 8, 2016) to bring all tobacco products under regulation.

14 senators, including Illinois’ Dick Durbin, state that e-cigarette use among high-school students grew ten-fold during 2011 – 2015. Besides, vaping amongst high-school students grew from 1.5% to jump to 16.0% in 2015.

The report called QuickStats: Percentage of Adults Who Ever Used an E-cigarette and Percentage Who Currently Use E-cigarette by Age Group — National Health Interview Survey, United States, 2016, showed that vaping declined. 3.2% of US adults used e-cigs in 2016. This number was 3.4% in 2015, and 3.7% in 2014.

According to a 2018 June study by the National Center for Biotechnology Information (NCBI), smokers are increasingly showing a willingness to go for e-cigs with a non-tobacco flavor. On the other hand, those having started with tobacco flavor are showing increased willingness to opt for non-tobacco flavors over time. The NCBI is an international resource for the scientific research community.

Lawmakers Pressing FDA: Applying for an E-Cig Merchant Account?

The 14 Senators have criticized the FDA for what it describes as lax enforcement that’s let children get addicted to flavored vape products in recent years. Specifically, the letter sent by the Senators mentions several products that’re attractive to children. These include flavors like gummy bear, cotton candy, peanut butter cup, and cookies ‘n cream.

As it’s written in the letter, companies that’re willing to use flavors in their tobacco products should show that flavor use will be beneficial to public health today and not 4 years later.

With all this being said, working only with a reputable payment processor like to get the best deal for your e-cig business is of vital importance. Only a reliable credit card processing company that has years of experience in the high risk industry and specializes in the high risk space can get you a secure and affordable e-cig merchant account to help grow your business.

EMB has an A+ rating with the Better Business Bureau (BBB) and A rating with Card Payment Options. What’s so much important, always talks to each and every business owner so to offer the right merchant services tailored to his/her own business needs. Beyond that, EMB is also a respectable alternative online lender working both with traditional and high risk businesses.

The letter comes after the May 2018 joint warning letters sent by the FDA and the Federal Trade Commission or FTC to 13 companies. The latter companies are involved in the marketing of flavored nicotine-containing e-liquids resembling foods that children find attractive such as juice boxes, candies, and cookies.

Earlier in 2018, the FDA published an Advanced Notice of Proposed Rulemaking concerning the regulation of flavored tobacco products. Comments for it could be submitted by July 19, 2018. Thousands of comments were submitted, and many of them were sent by adult consumers. Scientific evidence concerning flavored e-liquids’ benefits to public health was also submitted to make it easier for cigarette smokers to choose to vape.

The FDA’s approach to smoking reduction is as follows: first, the agency states it would start a public dialogue about decreasing the levels of nicotine in combustible cigarettes making them non-addictive. Second, the agency states its commitment to reform regulations to contribute to innovation for products like recreational (e-cigs) and medicinal (nicotine replacement therapy).

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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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