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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