Jul 31, 2014

Turning Back Time on The Tobacco Industry

OLYMPUS DIGITAL CAMERAThe American tobacco industry is changing; the face of the tobacco industry is going back to its roots. In 1911, the then government decided that the American Tobacco Company was too large and monopolized the industry; they ordered the split into smaller companies.

With the recent proposal for the purchase of Lorillard into the Reynolds American business, it is going back to before the company split, combining two of the biggest cigarette producers in America. The move will reduce costs, as savings on the production and the selling of the products will come into force, reducing the overheads of both businesses.

This gives the sales teams more options to offer their clients and this is a great time to start stocking cigarettes. Creating an online tobacco merchant account is going to allow for an increase in the potential sales, by giving customers the ability to pay using their credit and debit cards.

With the rise in smokers, this includes the e-cig market, there are more people becoming addicted to nicotine and the cigarette business in America is growing in certain areas.

This is because the price of cigarettes is still relatively cheap, allowing for greater profits and increase in prices over time. The only other market that has a similar closed market is China. Cigarette sales account for over 40% of the global market and China Tobacco produces these, both these countries have an isolated market. Not many cigarettes from other countries are able to penetrate the Chinese or American markets. In America, companies are waiting to see the price of compensation given to individuals who claim cigarettes caused illnesses. Whilst China protects its business, by refusing other brands into the country.

One major shareholder in Reynolds America is British American Tobacco, this company holds over 40% of the shares and rumour predicts a complete take-over of the company in the future.

Reynolds America is not holding onto all the brands in the merger of the two giant cigarette businesses, with Imperial Tobacco of Britain looking to procure the Winston and the Blu brands. The Winston is the closest to the Marlboro range and the Blu is one of the bestselling e-cigs on the American market.

The future of the companies trading tobacco in America might be going backwards, but it looks set to end isolation of America from the global cigarette market.

Contact us to set up your online tobacco 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 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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