‘Vaping’ Industry Awaits FDA Ruling

Jan 24, 2014
fdalogodhhs

E-Cigarettes (e-cigs) and vaporizers have become a booming business sector as more casual and conventional smokers alike are switching to the smokeless, vapor approach to smoking. Merchants in this sector have sprung up quickly, yet the uncertainty of such a new market has caused the industry to be labeled as high risk. Touted as a healthy alternative that decreases carcinogens, forgoes combustion, and provides a cleaner product than cigarettes and other traditional tobacco products, vaping has moved beyond a trend and into the territory of a rapidly expanding market. Yet the Food and Drug Administration (FDA) has yet to regulate this industry creating wildly fluctuating product standards and city ordinances. The future of your e-cig shop and merchant account will depend on the FDA’s future rulings.

FDA Regulation

The FDA is expected to release new regulations and rules regarding e-cigs and vaporizers in the coming days regarding their use in public places. Vaporizers and e-cigs are not a controlled substance and are not regulated by as a ‘tobacco product’ to this point.

Currently permissions to use e-cigarettes and vaporizers are based on city ordinances or the rules of any given establishment. Vaporizers operate by using vapors from heating a cartridge with an herbal blend, nicotine product, or aromatherapy oil for inhalation by the user. They are smokeless and only emit vapors.

Health Concerns?

The lack of regulation by the FDA has given birth to concerns regarding, among other things, nicotine levels in e-cigs and vaporizer products. Nicotine levels that vary greatly can have dramatic impacts on different users and can endanger their health.

Additionally, e-cigs and vaporizers are a new product meaning there has been insufficient long-term data regarding potentially harmful side effects down the road.

Between high nicotine levels, dangerous byproducts from foreign suppliers, and the lack of long-term study the perception of vaping has begun to shift. Instead of being the healthy alternative many are coming to see this new product as dangerous and uncertain.

The coming FDA rulings regarding vaping and vaping products will help to determine the future of this new industry and e-cig merchants. Rights to vape in public spaces, health regulations, and how new regulations relate to tobacco products are all issues waiting to be addressed by the FDA. The impact of the FDA’s ruling will be felt in the vaping industry for years to come. If you are an entrepreneur or business owner in this sector than the impact will be felt in how you apply for an e-cig merchant account, what kind of accounts are available to you, and the overall success of your business.

startnow

 

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