Tobacco Taxes a New Hot Topic Amongst Merchants

Feb 13, 2015

Being a tobacco merchant is tough. Not only do you have to compete with the booming e-cig market, but those in Bismark also have to compete with the newly suggested tobacco tax. North Dakota is trying to raise the state’s tobacco tax for the first time since the early 1990s. While many are in favor of the tax, many oppose it. The battle seems like it will last longer than the state Senate sessions, since the opponents are holding strong on their beliefs.

This can be tough if you are a tobacco merchant, regardless if you have a brick and mortar store or an e-business. What happens is that once one state has success, many states will follow. This means that tobacco merchants need to watch for tax hikes, and alert customers to any upcoming price changes. The uncertainty of the market also makes it hard to obtain a merchant account. If you are an existing tobacco merchant, you know that a tobacco merchant account is hard to come by. Usually, when you do find one, there are strings attached, such as higher transaction fees, transaction limits, and extensive background and credit checks. This can be intrusive to the average small business owner, and the system does not have to work this way. In fact, there are some merchant account processors who operate another way, a less intrusive way.

One of these merchant account providers is EMB. With EMB, you will get the service, quality, and security that is expected to come with a tobacco merchant account, but at a smaller cost. We at EMB do not gouge rates just because you are in the tobacco business, and we do not limit transactions. Also, we can help you fight a fraudulent charge if one arises.

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

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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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