Will Regulation Stop E-Cig Growth?

May 11, 2015

Electronic cigarettes are becoming extremely popular in the United States and around the world, as the FDA teeters on regulation for the billion dollar industry. Right now the FDA and other organizations are running studies to test the health effects of e-cigs. Until the FDA enacts federal regulation, how to treat e-cigs has been left up to each individual state. 41 states now prohibit online e-cig sales to minors, but persistent minors are still able to order e-cigs with little resistance. Four states have decided to regulate e-cigs like traditional cigarettes. 14 additional states have prohibited them in specific areas like, educational facilities and state buildings. Many more states, like New York, are submitting proposals to ban e-cigarettes everywhere traditional cigarettes are banned.

The absence of federal regulation, in many cases had made e-cig merchants operate using the honor system. Online e-cig sales have many health advocates concerned, as they believe this a way for teens to get their hands on e-cigs. Identity verification software is available, but many online retailers choose not to install it. In a recent study, 11 minors placed 98 illegal online orders. 75 order went through and of the packages delivered 95 percent did not require a signature. Although software is not ironclad, health advocates believe that responsible e-cig vendors should utilize the free age verification software available to act as a deterrent. But if the vendor is unwilling to adopt age verification software, and operates from a state without regulation, there is little the law can do.

Health advocates worry about the potential of teens to become addicted to e-cigs. Vaping is becoming popular amongst U.S. teens. As daily cigarette use has fallen by 50 percent amongst teens since 2010, they may be drifting towards the tasty flavors and sophisticated aesthetic of e-cigs. Also there is no regulation of how e-cigs are advertised. In many markets, e-cig advertisements are played on television without parental warnings, even though traditional cigarettes have been banned from television for years.

The uncertainty of FDA regulation has created a wild west in the e-cig industry. But vendors, merchants, and health advocates for and against e-cigs seem to welcome cohesive federal legislation. While any regulation is sure to create a decline in the sales of less ethical merchants, it will also give credibility to the industry which would encourage growth in the long term.

While the e-cig market is unregulated, merchants are experiencing huge gains due to no taxation, and television advertising. If you are interested in starting an electronic cigarette merchant account, trust no other payment processor than 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 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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