For online merchants, one of the most important steps in running a smooth business is having a reliable credit payment processor: a merchant account. If you operate an online e-cigarette business you will fall into a high risk business category that will make opening merchant accounts difficult. The reality is if you want to open a merchant account for your e-cig shop, you will almost certainly need to find an online high-risk merchant account.
Conventional banks are unwilling to work with high risk businesses as the potential fallout from borderline illegal products and services, you are based offshore, or if your standard advertising and marketing tactics do not correspond with the bank’s expectations. Additionally, banks will require large reserve payments for chargebacks, extensive documentation regarding your business history and plan, and finally a favorable credit score. Should you fall short in any of these categories traditional banks will turn you down.
Searching for a merchant account for your e-cig shop online can be equally challenging. There are scores of unethical merchant account providers preying on small businesses online. As a high risk small merchant running an e-cig shop, you will be forced into terms and rates that are neither ideal nor favorable. This is why research is pivotal for opening your merchant account. Services that provide your e-cig shop’s merchant account can maximize your business’ development and keep it running smoothly.
Beware of application fees and hidden costs in your contract; read the contract thoroughly. For ease of business, check that your provider has online reporting to make your merchant account manageable. Be sure, above all else, that your account provider is okay with the e-cigarette business; find a specialized provider with accounts and rates specific for e-cigarettes. Finally, be sure to check on rates regarding domestic vs. international providers as Running an e-cig shop will mandate an offshore merchant accounts may be dependent on foreign taxes.
Traditional banks will rarely accept an application for a merchant account from a high risk business like an e-cig shop. However, you can still find an account online. Careful research and deliberate effort in finding a reputable provider of merchant accounts can put your business on the fast track.
Get approved for an electronic cigarette merchant account in as little as 24 hours!