E-cigarette / Vape Merchant Accounts
There is no doubt that e-cigarettes (or vaping) has exploded in popularity, and sales, over the last few years. Many long-time smokers are using e-cigarettes to reduce or quit smoking altogether, and a younger generation is taking to vaping due to the lack of health risks and many flavors being introduced into the market. A full 1/3 of tobacco retail establishments are now vaping shops and lounges, with more than 3500 of them spread across the USA. Individuals wishing to start an e-cigarette business, however, are finding it difficult to secure a merchant account with a bank due to the fact that they are considered a high risk merchant. Fortunately, the consultants at Merchant Processing Advisors specialize in high risk merchants and can find suitable payment processor partners that will help them maximize their profits for years to come by offering great services and competitive rates.
One would think that a vaping store or lounge would not be considered a high risk merchant by a bank, but there are reasons why this is so. One reason is that many municipalities are banning the public use of e-cigarettes, causing quite a bit of concern over the long-term legality of the product. Another reason is that dubious claims of health risks associated with vaping are considered fact and spread throughout the media, which causes more legal ramifications for the product. Banks also believe that there is a greater chance of chargebacks associated with e-cigarettes. Such concerns have led banks to stop offering merchant accounts to vaping retailers entirely or by forcing high rates upon their sales transactions. Merchant Processing Advisors is aware of the issues facing e-cigarette retailers, and their focus is to offer solutions that result in their client being able to put more money in their pocket. This is possible due to the fact that Merchant Processing Advisors has partnership agreements with merchant account providers around the world. The goal is to have these providers compete for your business, resulting in lower rates that are highly competitive.
While banks consider a vaping establishment to be a high risk merchant, this is a great time to enter the field. Total e-cigarette sales have climbed every year: $20,000 in 2008, $1 million in 2013, $1.7 million in 2014, and $2.875 million in 2015. People are looking for a safe alternative to smoking, and vamping is providing the answer. When you’re tired of getting the runaround from your local bank, give Merchant Processing Advisors a call. Our consultation is free, and we can give you a rate quote within 24 to 48 hours after you fill out our high risk merchant application.
Our services are provided at no additional cost to you.