The SFATA Fights to Preserve E-cig Merchant Accounts

Jun 23, 2014

The Smoke-Free Alternatives Trade Association (SFATA) held a spring conference this year to discuss the internal and external challenges the vapor industry faces in the years to come. Not only are e-cig merchant account holders leery about the effects that impending government regulation may have on business, but they also are struggling to create a unified identity that will enable them to fight Big Tobacco.

A multitude of e-cigarette stakeholders weighed in on how they could combat legislation, the media, Big Tobacco, and misguided health officials, and win the support of the public and legislators to protect the young industry. Some e-cig merchant account holders and entrepreneurs believe that the vapor industry needs to rethink its developmental and business strategies.

Cynthia Cabrera, Executive Director of SFATA, believes that the first mistake that the vapor industry made was naming their product “electronic cigarettes” in an attempt to market to adult smokers. The term “cigarettes” has developed a negative connotation and a reputation as a health hazard, which may attribute to the public misconception that e-cigarettes are a health hazard as well.

E-cig stakeholders deny that their products are anything like the traditional tobacco-based cigarettes that the vapor industry seeks to replace. The power of the e-cigarette comes from its ability to customize user experiences. Consumers can choose from a variety of flavors like mocha, strawberry, and cinnamon. E-cigs also cost less than traditional tobacco. Consumers can make a one-time purchase of an e-cig and then only bare the cost of the cartridges. Cartridge life can last up to a week in many cases, and cost less than a pack of cigarettes. Not to mention that many habitual cigarette users have used e-cigs to break their tobacco addictions.

The e-cig has not only transformed the lives of consumers, but it has also breathed life into a booming industry. For many small business owners and e-cig merchant account holders, the vapor revolution is the embodiment of the American dream. A few years ago, only the risk takers and the desperate dared to invest in e-cigs. Now those first entrants are enjoying massive profits, but are once again left unsettled as the government debates over how to regulate their products.

The vapor industry also faces a few internal challenges. Many in the industry focus on competing with each other, as opposed to focusing their energy on taking more customers away from Big Tobacco. Also, true manufacturers with credible products and experience must find ways to differentiate themselves from less credible hobbyists.

Despite the various panels and discussions that took place at the SFATA, the main theme of the conference is the need for the vapor industry to mature quickly, which it appears to be doing. Last year, the SFATA had only six members, today it has around 140, and they are all waiting anxiously on government regulations to see if their vapor business will thrive or be snuffed out.

eMerchantBroker is a proud member of SFATA


For more on an e-cig merchant account click on the button below





Let us help you get a high risk merchant account today!

Get Started

Award winning.

  • 2012
  • 2013
  • 2014
  • 2015
  • 2016

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.

Live Chat