Online Tobacco Merchant Accounts are a Must

Jul 23, 2015

Like e-cig sales and firearm sales, one of the biggest online sales areas concerns tobacco. There are many reasons for this, from sky-high state taxation (I’m talking about you, New York), to limited tobacco options, there are as many reasons as there are cigarette brands. If you are looking into a new business venture, the online tobacco industry is a great place to start. However, there are things that could easily deter your dream of being a business owner is you are not careful.

One of the biggest issues comes from selling to underage buyers. While every website should have an age identifier, this can be easily manipulated. Many online tobacco merchants require a faxed or scanned copy of the driver’s license, as well as a valid telephone number to contact the buyer, to verify information. It is also wise not to ship to a PO Box, but rather a home address. If you were to be scammed, typically those orders go to a PO Box.

You also need to make sure that your stock is fresh. Do not buy in bulk at first, as tobacco can lose its potency. When your business grows, you can buy in bulk, but starting out, you probably do not need 4,000 cartons of Marlboro Lights. This will save you money, and keep it easy for you to manage your new business.

You also need to make sure that you are operating within the federal, state, and local laws. Every locality has its own set of laws regarding businesses, and some do not allow tobacco shops, even if it is an online shop. You must have a business license, even if you do not have a brick and mortar store. Be sure to stay inside the laws, and if you are not sure about something, call your online tobacco merchant account processor, your attorney or your local Chamber of Commerce. If they cannot answer your inquiry, they can direct you to the right place.

Online tobacco sales are rising, and this is a great time to invest in the company. However, the industry can be tricky, so be sure to follow your laws and regulations, and reach out to your online tobacco merchant account processor with any questions.

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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 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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