Tobacco Rates Are Likely to Climb

Nov 26, 2014

Tobacco rates are notorious for going up and down… but mostly up. It should be no surprise that tobacco rates are about to climb again, but this time are not well known. Above all, if you sell tobacco products, you need to be ready for this change, and make sure that your tobacco merchant account processor is ready as well.

“Mysuru-Kodagu Member of Parliament on Tuesday held discussions with the Tobacco Board head, Regional Manager and other officers, and ITC and other buyers of tobacco against the background of the fall in tobacco prices”. Because of this, tobacco prices are sure to go up, but it’s not clear how much they will go up. Is it wise to alert your customers? Sure. Just be sure to tell them that it’s not you, that it is the industry itself. When tobacco prices climb even a slight percentage, cigarette manufacturers use that to dramatically raise the prices of their cigarettes. People will still purchase them, regardless of price, because they are that addicted.

As you already know, many tobacco sales are taking place online. You need to make sure that your online tobacco merchant account processor is aware of the upcoming spike in prices. You also need to make sure that they are prepared to handle any incoming fraudulent charges that may come from this rise in pricing. Let’s say a customer is used to paying $3 for a pack of cigarettes, and all of a sudden he notices a charge for $4 instead. He may claim this as a fraudulent charge, if he did not notice the price change before purchase. Too many fraudulent charges can cause your merchant account provider to drop you. For this, you need a merchant account that is experienced in online tobacco sales, such as eMerchantBroker.com.

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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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