The vaping industry continues to explode as more people turn to what is popularly considered to be a safer alternative to smoking cigarettes. For retailers, operating within the vaping industry means you can tap into a market that is expected to have a value of $47.11 billion by 2025. Younger generations especially prefer vaping thanks to a rising awareness of the negative health effects of smoking tobacco. As manufacturers continue to create new vaping pens and devices, this puts retailers in a prime position to corner a piece of the vaping market. But opening a brick-and-mortar or online vape shop isn't as easy as opening a lot of other types of stores, especially when it comes to applying for merchant accounts.
Why Are Electronic Cigarette and Vapes Considered High-Risk?
There are numerous factors that cause retailers of electronic cigarettes and vapes to be considered high-risk. First and foremost, the vaping industry is highly regulated. There are a large number of FDA regulations that clearly outline a long list of rules for vape and cigarette sales. In addition, retailers must take into account any applicable city and state rules.
Secondly, legal and age restrictions on vape sales lead to retailers being considered as high-risk. Credit card processors often hesitate to partner with vape retailers because many vape devices can be used for smoking marijuana. In addition to vape juice and pens, accessories for the devices (including atomizers and batteries) are considered high-risk as well.
Even though vaping retailers are considered high-risk, this doesn't mean you have to go without accepting credit cards. In fact, all you need to do is find a high-risk credit card processor.
What Does it Mean to Be a High-Risk Merchant?
If you are a high-risk merchant, it means you are likely going to pay larger credit card processing fees than those that are not high-risk. Being a high-risk merchant also means some providers may completely reject your application because of your high level of risk. You may also have a limit on the number of credit card transactions you can process and some merchant service providers might require you to have an aggressive cash reserve. They might also try to lock you into a long-term contract with high termination fees.
How Can Electronic Cigarette and Vape Merchants Get a High-Risk Merchant Account?
The most important thing to remember when applying for a high-risk merchant services account is that you should be upfront and honest about the nature of your business. If you misrepresent your business, it may lead to immediate termination of your merchant services account as well as hefty fines.
The first step towards getting started with your high-risk merchant account is to fill out an application with a merchant services provider. You’ll have to submit proper documentation, including credit history, merchant service history, and financial history for your business. BankCard makes this process especially painless with our easy online application process. We are experienced in working with high-risk merchants, so when you fill out an application with us, our team immediately goes to work on getting you approved.
BankCard Services Provides E-Cig and Vape Merchant Accounts When Others Refuse
BankCard Services has a team of high-risk merchant service experts who understand the unique needs of businesses in the electronic cigarettes and vaping industries. We understand the complexities behind credit card processing and can give you next-day access to funds. With our BankCard Connect payment gateway, you gain access to terminal integration and online retail processing. Our 24/7 live support ensures you get answers when you need them. Best of all, we guarantee no hidden fees.
If you're ready to make the jump into the vaping industry, BankCard Services is here to help. We can help you connect with a credit card processor that specializes in high-risk payment processing. Contact us today!
Mickael is an entrepreneur and the Co-founder of Bankcard Services. He is a family man and loves technology, innovation, and soccer.