In recent years, vaping and e-cigarette companies have looked a bit deeper into high-risk credit card processing solutions for their businesses. If you want to sell e-cigarettes or grow an online vape store, one obstacle you will face is finding a merchant account solution that can accept your high-risk product transactions.
Companies like PayPal do not allow the sale of electronic cigarettes because they consider them as being “high cost” products – meaning these devices cannot be sold using traditional payment methods such as Visa Debit Cards or MasterCard Credit Card Processing Solutions without risking cancellation from this type of company’s services altogether!
If you’re looking for a vape or e-cig merchant account with transparent pricing, almost instant approvals and expert support 24/7, get in touch with us today. We specialize in vape and e-cig payment processing, including credit card processing, and our team is available to answer any and all of your questions.
Vaping and E-cigarettes are on the rise. Yet, despite their popularity, payment processors often identify these businesses as high risk, because of:
- Uncertain legality and safety of still fairly new products.
- Lack of research on the short- and long-term effects of vapes on health.
- Lack of regulations for the budding industry in most states.
- Additional oversight and underwriting knowledge and procedures for age-restricted products.
Vape and e-Cig businesses should make sure their provider brings a couple more tools to the table than standard merchant accounts. As a high-risk industry with special needs, look for:
- Fraud and chargeback protection tools.
- Age verification systems.
Vape & e-cig merchant account application
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Vape and e-cig high risk merchant accounts
About Electronic Cigarette Merchant Accounts
They say the best things in life are free, but e-cigarettes and other vaping devices have come to replace tobacco cigarettes at least for smokers. With a more than $3.5 billion industry as the well-rising popularity of different smoking options such as hookahs or vapes, ex-smokers who switch over to these healthier alternatives find they can live an active lifestyle again without fear of lung cancer or heart disease. This is thanks in part due to their newfound vitality from finding healthy substitutes that still give them something sweet and satisfying on their lips after each puff no matter what flavor you pick!
The e-cig industry is smoking hot. Entrepreneurs and small businesses are taking advantage of the trend, but banks don’t make it easy! Traditional financial institutions deem electronic cigarette-related industries high risk because they think these businesses defy conventional finance models. Bankcard provides a cost-effective way for merchants to process credit card transactions by providing them with an alternative payment solution that will work within their business model at fair rates in order to thrive as part of this ever-changing world economy.
Bankcard’s services are geared at meeting the needs of high-risk industries with little to no credit and minimal funds or assets. They specialize in riskier businesses such as online e-cigarette shops, vaping stores, tobacco retail outlets that sell cigars and other smoking accessories like pipes. We offer merchants a customized payment processing solution for all types of companies with various monthly transaction volumes from $2K – 20M+.
Some of the features of your merchant account may include:
- Multi-bank processing (including off-shore)
- No reserve
- Fast settlements to merchants
- Secure payment gateway
- Chargeback alerts
- Chargeback disputes
- ACH/Check 21 processing
- Fraud prevention and protection
- Competitive processing rates (below industry standards)
- Merchants can begin processing in less than 1 week
What Will A High-Risk Vape Merchant Account Offer You?
A high-risk vape merchant account gives you the freedom to run your business efficiently. Tailored for those of us in a still-growing industry, our providers are constantly abreast with changing regulations and follow them faithfully. In addition, we help keep transactions good standing by working hand in hand with payment processing partners who understand responsible vaping practices as well as criminal law surrounding this new market we share that’s constantly evolving – Bankcard has more than 20 years’ worth of experience and expertise when it comes to understanding how these laws affect merchants.
Below is the list of non-tobacco related vape and electronic cigarette options:
- Disposable E-Cigs
- Electronic Vaporizer
- Nic Salts
- Nicotine Salts
- Pod Vapes
- Pre-filled Vape Cartridges
- Rechargeable E-Cigarettes
- Vape Batteries
- Vape Cases
- Vape Chargers
- Vape Coils
- Vape Juice
- Vape Mods
- Vape Pens
- Vape Tank Systems
- Vaporizer Box Mod Kits
- Vaporizer Juice
- Wooden Vape
Why your Business Needs an E-cig Merchant Account
One of the most challenging aspects of owning a business is accepting payments from customers. Many merchants rely on credit cards which can be difficult and time-consuming, but thanks to Bankcard specializing in electronic cigarette merchant accounts, it’s now easier than ever before! With an e-cig merchant account through Bankcard, you’ll have dedicated customer service representatives willing and able to help get your application processed as soon as possible so that you don’t miss out on any opportunity for revenue generation.
E-cig merchants are in a tough spot – they need credit card processing but can’t get it because of their high risk. But as the vaping industry has grown, so have its merchant account needs, and now there’s an answer for them! Bankcard is dedicated to helping these small businesses find customized solutions to meet all their e-cigarette business’ financial goals while providing excellent customer service.
Selling Electronic Cigarettes Online
Vaping is the trendy alternative to cigarettes, and it’s forecasted that people will be switching over in droves. With vaping proven to be a “less deadly” substitute for smoking, more companies are getting into this booming new industry worth an estimated $14 billion. Establishing your own online presence may give you one of the best opportunities to expand your market share while not leaving any room for competitors behind!
As a veteran in the industry, Bankcard understands that each business has different needs and tailored solutions. From accepting e-cigarettes to juice or smoke shops, we are sure you will find just what your vape company is looking for. For merchants with high-risk merchant accounts, our experienced team can help simplify the complicated process of obtaining payment processing banks, so contact us today!
The Differences Between an E-cig Merchant Account and a Low-risk Merchant Account
An e-cig merchant account costs a little more than other low-risk accounts, but it has benefits that set them apart. For example, an e-cigarette business might have their funds delayed up to 30 days, or they may be limited by the number of credit card transactions they can process per month and still maintain approval for funding.
Bankcard always strives to make the customer experience better, which is why they have strict limits in place for new customers. However, after the first three months of history with successful processing, these limits are lifted, and merchants can be more creative about how their products or services will be paid by cardholders.
What is a Paraphernalia Merchant Account?
Did you know that the term paraphernalia actually refers to devices used for a particular activity? These would be glass pipes, lighters, grinders, ashtrays, and rolling machines. In relation to smoking accessories (which often come in handy), bongs are also considered paraphernalia.
CBD is becoming a booming industry, but some traditional institutions are still hesitant to get involved. Smoking paraphernalia companies have been relegated to high-risk status due in part because of the association with hemp and other related CBD products, which has made banks wary about issuing merchant accounts for these types of businesses.
Smoking Accessories Merchant Account
As more and more people are turning to vape, hemp, or CBD products over traditional smoking methods like cigarettes and cigars because of their health benefits. The sales for these alternative items have risen dramatically in recent years with a particular focus on accessories that complement the new lifestyle choice such as vape pens, bubblers/bongs, etc.; this has led to an increase in startups across America who cater exclusively to this industry.
The world today is going digital. If you want to be a successful business, it’s important that your company has an online presence in the form of e-commerce stores and websites. Companies with no website or store may miss out on opportunities because they are limiting their potential customer base by not selling products online. Let PayKings get your shop up and running so customers across America can buy smoking accessories from them!
What to expect during a merchant account application review
Merchants will need to prove they are operating legally by giving underwriters valid disclosures and restrictions that help support the businesses’ claims in order to have their applications approved. Merchants can use a number of methods, such as providing credit card processors with legal documents like licenses or permits if needed, before having an application accepted for higher-risk transactions.
When underwriters review your application from a vaping, electronic cigarette, or any type of smoking accessory business, they look for any applicable laws being followed. When examining a site to see if it would be approved on top of other factors, the company will have its eye out for products not marketed directly towards marijuana and other illegal substances.
Underwriters want to make sure that a merchant is worthy of their investment. Therefore, they look at many factors, including the company’s history with credit card processing and its website. Underwriters will also inspect your bank statements for any suspicious activity or unpaid bills you may have forgotten about to get an accurate picture of where you stand financially before they approve new merchants for service on behalf of their clients’ businesses.
The simplest way to get a merchant account approved is by making sure the applicant has no outstanding debt, depositing enough money in their bank account so that they can cover certain expenses, and have an exemplary credit history. These steps show underwriters that you’re running a legitimate business with lower risk for them. In addition, if these three things are true, then merchants will be more likely to receive unlimited accounts, such as limits on higher monthly processing volume or lowering rolling reserves without any hiccups along the way!
E-cig merchant account application requirements
Businesses can apply for an e-cig merchant account today. To get started, simply fill out Bankcard’s vape merchant service online application!
Businesses can apply for an e-cig merchant account today. To get started, simply fill out Bankcard’s vape merchant service online application! You should have the following items ready to share with your Bankcard representative:
- Government-issued photo ID, such as a driver’s license
- Either pre-printed voided check or letter from the bank
- Three months of your most recent bank statements
- Three months of your most recent credit card processing statements
- Either SSN (Social Security Number) or EIN (Employer Identification Number)
- Chargebacks ratio under 2%
Keep in mind e-commerce merchants must also have a fully functional website that is secure and follows all regulatory obligations.
Bankcard guarantees a streamlined application process and offers approvals within 24 to 48 hours.
Did Your Credit Card Processor Shut Down Merchant Account?
You’ve got to have a place with your back, and we’re here for you. If you are an established vape or e-cigarette business owner whose credit card processor has shut down, take advantage of our services today! We offer the highest quality account recovery service in North America because most traditional credit card processing company doesn’t want any connection to specific industries such as vaping or cigarettes.
You need to work with a trustworthy high-risk payment processor to resume your company’s sales. Any suspension or locked account is due to one of two reasons: either the merchant has violated their own policy, resulting in an investigation and/or shut down, or the bank that holds those funds will freeze them until you contact customer service about getting back on track.
Bankcard will be there to help you through any challenging situation, like when your vape account gets suspended or shut down. Not only does Bankcard act fast and get things back up and running as soon as possible, but it has the proper solutions tailored just for you with over twenty different bank relationships!
How Does Being High Risk Affect Your Chances Of Getting A Vape Merchant Account?
Vaping is a high-risk industry, and most traditional payment processors would not approve of your merchant account. Selling products such as vapes will flag you to be classified as “high risk” by banks, which means that they may refuse the application for any type of financial services, including credit cards.
Traditional merchant accounts are a great way to start your vape business, but they come with some serious risks. The problem is that most traditional platforms won’t approve anything high-risk like e-liquids or vaporizers as the account goes through underwriting weeks after approval and then cancels any high-risk products immediately. This leaves you without revenue for those weeks until everything can be sorted out again in order to keep using their service.
It’s important to understand that being a high-risk merchant does not exclude you from getting the payment processing you need. However, if your options are limited, think again – there is more than one way for processors and banks to help! These financial institutions can offer competitive rates while keeping your business secure.
Rest assured, with reliable payment processors specifically designed to facilitate vape and e-cigarette purchases. You can focus on your business. Having sustainable credit card processing will eliminate any worries about merchant services. With Bankcard as the premier choice for merchants looking for a solution that won’t break their bank account or steal from them in other ways like fraudulent transactions, there are no more worries when it comes to making sure you have what is necessary to run an efficient company while still maintaining stable financials in this difficult market.
What are chargebacks and why are their ratios so high?
Online merchants who sell e-cigarettes, vaping supplies, and smoking accessories are at risk of high chargebacks due to a variety of reasons. When there is an inquiry about a transaction on the customer’s card or bank account, it can lead to what we call ‘chargeback.’ If the merchant does not know in time or if they do not have enough evidence for their side when this happens – because let’s face it: customers may be more inclined than ever before with online shopping – then it will most likely result in a loss for both parties involved; especially as commerce becomes increasingly digitalized.
With the increased popularity of e-cigarettes, many small businesses have opened up to try and capitalize on this high demand. However, with such a new industry comes an infamous lack in reputation – which could be higher than you think! Many customers who reported checking their monthly credit card statements were surprised by how few purchases they had made at local vape shops due to being unaware that it was happening.
If a customer’s order is delayed, they may become disgruntled and go through with chargebacks. This can be detrimental to an online e-cig retailer who relies on third-party fulfillment centers or shippers for the delivery of products.
Online merchants are more likely than ever before to use outside resources when it comes to delivering their goods and keeping up supply lines; but if the merchant doesn’t have good quality control over these external providers, shipping delays could lead customers down the path of high chargeback rates that will put them out of business in no time at all!
As e-cigarette merchants are growing in numbers and size, many of them do not know the precautions they need to take against fraud. Fraudsters will target these businesses because they can’t afford proper security measures or don’t realize how much work is involved with it. Unlike larger businesses which have a higher awareness about what steps must be taken for protection, some smaller merchants may go through an entire lifetime without knowing these things exist until after their first experience being victimized by scam artists who steal money from their accounts at any time the merchant has already issued credit cards that cannot get refunded if there was no actual transaction made on those cards during this period.
Why are chargebacks bad?
Racking up chargebacks is much more detrimental to a merchant account vs. issuing refunds. You can lose your merchant service account if you have a high 3% ratio of charges, which means it’s important for all companies to be aware that this process could hurt them in the long term. Vape shops are at risk because when these terms are terminated and need another provider, there’s not always someone who will take on the business.
Why high chargebacks are red flags for processors
Businesses that don’t have the cash to pay refunds or chargebacks for disputed transactions can quickly find themselves in big trouble. Credit card processors will quickly drop a merchant with high chargebacks because these usually are signs of problems with customer service, but it’s not just them – merchants account providers know this too and will also end ties if funds get out of hand.
The cost of high chargebacks is not a problem for merchants, but it can be devastating to credit card processors. High charges are also bad news for the company’s relationship with its sponsor bank and credit card companies because they endanger both sides’ ability to profit from each other in the long run. The merchant account provider who persists in processing purchases on behalf of businesses that cannot manage low chargeback ratios might receive fines or even lose their banking partner altogether; this will prove far more expensive than any business could ever provide them back.
How to reduce chargebacks
The key to preventing chargebacks is providing the best possible customer service. Poor experiences or credit card fraud can sometimes result in a chargeback, so it’s important to be transparent with your customers and provide them detailed receipts of their purchases. E-cig businesses should let customers know what they purchased when they pick up an itemized receipt for all items bought at that store during one transaction.
Merchants should do their best to stay in contact with customers and ensure that they are satisfied immediately after each purchase. For example, send an email thanking them for the purchase, send over some final versions of receipts with your information on them so you can be contacted later if there is any confusion or something goes wrong, or ask customer service questions at the point-of-sale via smartphone scan & answer card survey software which will show consumers how much value they have added through shopping at your store.
Bankcard’s elite chargeback prevention system is the envy of merchants everywhere, and their partnership with leading solutions providers has allowed them to provide a premier service for high-risk businesses. The Bankcard team works hard to develop partnerships that keep up with evolving fraud schemes, ensuring they can stay ahead in this competitive market segment.
The prevention system operates with banks and card issuers, giving merchants control over the resolution of credit card transaction disputes. Alerts can trim about 25% off a merchant’s chargeback ratio by providing them an in-depth look at where to make improvements for more satisfied customers!
Some merchants have been regretting their decision not to take a proactive approach when it comes to chargebacks. Unfortunately, this sort of behavior can end with the company losing its business and even risk having their e-cig merchant accounts closed down for good if they don’t fight back soon.
E-cig and related-industry categories
The four-digit numerical codes given to business establishments by countries like the United States and other countries, including England, are known as Standard Industrial Classification (SIC) codes. These SIC identify the primary purpose of a company, but there is more to it than meets the eye: these numbers have been neglected for years due to NAICS or six-digit code that was created in order to classify similar types of businesses under one category with new data analysis techniques such as statistical agencies collecting information on economic impact related factors.
The tobacco industry is taking over the niche of vaping and e-cigarettes. Unfortunately, especially for those that don’t sell cigarettes, this can be a significant liability as it’s still unclear how safe these products are to use or what their long-term impacts will be on consumers’ health. For now, though, companies who want to protect themselves from future lawsuits would do best by not selling anything related under any SIC code other than 5194: Tobacco and Tobacco Products.
- 5993: Tobacco Stores and Stands
- 5199: Nondurable Goods, Not Elsewhere Classified
- 7389: Business Services, Not Elsewhere Categorized
Vaping and vape shops, e-juices, and e-cigs are often the subjects of a business’ SIC code under industry 453991: Tobacco Stores NAICS. Sometimes they must use 424940: Tobacco and Tobacco Product Merchant Wholesalers as well to categorize themselves accurately.
No blowing smoking – e-cigs are popular and safer
In 2014, 3.7% of adults routinely used e-cigarettes, according to the National Interview Survey, and that percentage represents about 9 million Americans. However, the survey also revealed that one in six current traditional cigarette smokers use them and nearly one out four recent ex-smokers who have switched over to vaping rather than smoking cigarettes! Why?
A recent survey conducted in the United States has concluded that while there is no conclusive evidence of their safety or riskiness for human health, vaping may be a good substitute for those who can’t quit smoking tobacco products. The US Centers for Disease Control and Prevention (CDC) report states: “The toxicant levels observed in some studies raise questions about chronic exposure.” We do know that they don’t contain many carcinogens like arsenic or vinyl chloride, which means smokers will have less chance of developing cancer as well as other fatal diseases such as lung disease.
A new study from the United Kingdom has found that e-cigarettes are safer than traditional cigarettes, and more people are starting to switch.
It seems like e-cigarettes are the safer way to smoke, according to a report from Public Health England. The Royal College of Physicians also supports this statement and urged tobacco smokers–even those smoking just one or two cigarettes per day at most—to switch over. Canadian scientists found that vaping is less harmful than traditional cigarette smoking because it contains fewer toxins. In addition, none of the tar left in cigarette smoke after burning them up is all nice with fire. This reduces exposure for yourself and others around you who may not be interested in taking part in your nicotine addiction.
Clearing the air about vaping
Vaping is inhaling water vapor through an electronic cigarette, which is a battery-operated inhaler. When users take hits from hookahs or vaping devices, the batteries heat liquids that are atomized into inhalable vapors. E-cigarettes use cartridges called cartomizers and LEDs to light when drawing on them—both of these also contain varying amounts of nicotine for those looking for either relief from addiction or pleasure in smoking again without any health risks due to harmful chemicals found with regular cigarettes.
Vaping devices are a great way for smokers to kick their tobacco addictions by offering them an alternative. They also do not lead to second-hand smoke, which is known as the leading cause of all cancer and heart disease/stroke in adults.
Get your new e-cig and vape store accepting credit cards in as little as 72 hours! Bankcard has the perfect merchant account for any electronic cigarette shop. We’ll help you find one to fit your needs and get it set up quickly with NO application fees, so no time is wasted on waiting or paperwork.
Merchant Account for E-Cig Stores – Electronic Cigarette Merchant Account
Without a doubt, the Family Smoking Prevention and Tobacco Control Act of 2009 has caused processors to be wary about processing payments for electronic cigarettes. They’re technically not tobacco or cigarettes, but due to their status as an unregulated product, banks would rather avoid any legal risks by steering clear. As a result, electronic cigarette companies are being forced into finding other ways of accepting transactions, such as cash-only models, which increase prices on customers who need access without delays in delivery time that can happen with traditional bank products like credit cards.
Why browse for payment services when you could let the experts take care of it? Our team at Bankcard can guide you on setting up your merchant account so that your e-cig shop is off to a good start.
The complete vape merchant account
The Bankcard has a customer-friendly approach to credit processing, with fast turnaround times and easy application guidelines for any type of business owner or entrepreneur looking for an account designed specifically around their needs – especially if they’re in the vaping industry!
The benefits don’t end there: you’ll also get direct support from your personal specialist who will help guide you through every step on getting set up right away as well as offer ongoing mentorship so you can grow your company by leaps and bounds without worrying about not having all the tools necessary to succeed like access to financing at competitive rates with a consistent focus on simplicity.
- No Application Fees
- Streamlined Application Process
- Friendly and Fast Customer Service
- Competitive Rates
- Over 50+ Banking Relationships
- Multiple Secure Payment Gateway Options
The Full-Service High-Risk Merchant Account Company
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