Merchant Account Services For Your Vape And eCig Business

May 21, 2020

Securing a reputable e-cig merchant account will better position you for financial success.

According to a new study conducted by Grand View Research, Inc., the worldwide vape and e-cigarette market is expected to hit $67.31 billion by the year 2027. A growing number of consumers are becoming more informed about the benefits of smoking “ashless” and “smokeless” tobacco. The benefits of using this type of alternative formulation are considered much less toxic. Unlike conventional cigarettes that produce clouds of cough-inducing smoke, these alternative cigarettes only create a vapor. 

More Than A Trend

The switch to vaping has given smokers another means to transition to quitting permanently. Vaping also provides a way for recreational smokers to engage in smoking, with less devastating health consequences. 

New vaping devices such as the IQOS MESH, “a puff-activated heating and a low-liquid level detection system”, is expected to further fuel interest and increase widespread adoption of this product. 

E-liquid flavors introduced into the market have also spurred interest and provoked growth within the market. 

Are Vape And e-Cig Businesses High Risk?

Although using vape and e-cigarettes could be looked upon as the lesser evil twin of conventional cigarettes, the American Medical Association (AMA) is not so sure.

AMA President Patrice A. Harris , MD, MA, had this to say:

“The recent lung illness outbreak has alarmed physicians and the broader public health community and shined a light on the fact that we have very little evidence about the short- and long-term health consequences of e-cigarettes and vaping products,”

Most traditional merchant account providers will simply look away and reject any of your attempts at securing a merchant account with them. They simply do not want to take the risk.

Traditional merchant providers must follow stringent federal regulations, taking extra careful steps to follow specific underwriting rules and procedures.

Finally, since the purchase of these items for most businesses is via an online terminal by using a credit card (card-not-present) this automatically exposes the business to higher chargeback risk.

What Are Your Options To Process Payments?

So now you know the controversial arena you are currently in and the immense difficulty of obtaining a traditional merchant account. So what are your options?

The answer is to find a solid and reliable high risk merchant account provider. High risk merchant account providers are equipped with dealing with a wide range of controversial industries such as escort and gambling businesses. 

You need to find a professional high-risk merchant account provider that has an established relationship with banks and acquirers that are sympathetic to the needs of vape and e-cig business owners. This will ensure that you will have a long-term partnership for your credit card processing needs. 

Every provider has different requirements to be approved for a merchant account, however, the standards that you must abide by are pretty common, they include:

  • You must abide by the most up-to-date FDA regulations for e-cig product sales
  • Only sell vaporizers that are compatible with e-juices
  • Do not sell vapes that can be utilized with flowered plants or herbs
  • Do not display images of Marijuana or Cannabis on your products or website

Seek A Provider That Values Your Business

One cannot deny the incredibly profitable prospect of opening up a vape and e-cig business. The key is to be meticulous in remaining within the federally mandated regulations and stay up to date with these ever-changing laws. 

Pair that with a professional and solid high risk merchant account provider who is well-read on these regulations and you have the recipe for success.

Let us help you get a high risk merchant account 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.

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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