New E-Cigarette Regulations Could Put Retailers out of Business

Sep 16, 2015

Electronic cigarettes have always been a hot topic. Earlier on, they were seen as big business and many entrepreneurs jumped at the opportunity. In fact, those who have been in the industry for upwards of 20 years have been seen enormous returns on investment. In Indiana, particularly, e-cig business has been big business!

However, this smooth ride is about to come to a halt. If the new e-cig regulations that are currently being debated are passed into law, most merchants could be thrown out of business, never to b heard of again.

E-cigarettes have been causing a lot of fear recently, especially among manufacturers, distributors, and vendors. People working in the industry are worried about being hit with the same regulations that regular cigarette dealers operate under. Meanwhile, lawmakers and health experts feel that the time is right to place the e-cig sector under strict regulations to avert a possible public health crisis.

The worry first started when the CDC released its annual report on tobacco use among the youth. In the study, it was found that the number of middle and high school youth using e-cigarettes had tripled between 2013 and 2014.

While the report suggested that most of the students were using electronic cigarettes (e-cigs) in a bid to quite conventional cigarettes, which they pay for through sellers’ e-cig merchant accounts, health officers have expressed concern that the reverse could happen. They’re saying that the fact that these youths get exposed to e-cigarettes at such a young age means that they wouldn’t shy away from actual tobacco cigarettes in the future.

“That’s why Indiana is working hard to pass legislation to regulate e-cigarettes,” says Bryan Corbin who works in the Indiana Attorney General’s office. “The end goal is to avert possible public health risk associated with the rising use of e-cigarettes among our teens,” he continued. He also added that the AG’s office was afraid that the current trend would result in a “whole generation of nicotine addicts.”

Exactly what will be in the final bill remains anyone’s guess. However, it is very likely that the regulations will be strongly against the manufacture, sale, and distribution of any liquid or gel substance containing nicotine unless the product is in child-resistant packaging. Some have even suggested that those found in breach of the new law could be fined as much as 500 percent of the retail value of the substance in question, or $5,000.

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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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