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Tobacco and Glass Pipe Merchant Processing

Merchants selling eCigarettes, glass water pipes, smoking accessories, bongs, hookahs, tobacco products and vape supplies needn’t be told how difficult it is to keep the shutters up. Owing to stringent government regulations and policies, this industry has always been under the scanner. When it comes to payment processing too, it has never been easy for vape shops. This article offers an in-depth on what payment processing looks like for vape shops – the good and the ugly.

Reputation and Tobacco Regulations

If you’ve already looked around for a merchant account provider, you’ve probably learned that your business does not qualify for a regular merchant account. Your business features in the list of the so called “high-risk businesses”. The reason is your business deals in eCigarettes, glass water pipes, smoking accessories, bongs, hookahs, tobacco products.

The sale of eCigarettes, glass water pipes, smoking accessories, bongs, delta-8 cbd, delta-9 cbd, kratom products, hookahs, tobacco products and vape supplies draws heavy flak across the world. They are deemed as a major health concern and more because teens make up a large percentage of their customer base. Thus, government agencies try to regulate business practices by implementing policies. While it is legal to sell eCigarettes, glass water pipes, smoking accessories, bongs, hookahs, tobacco products, there are many states that have banned their sale online.

Banks and traditional payment processors are wary of providing credit card processing services to vape shops because of the controversial nature of the products being sold and the ever changing government regulations. They are unwilling to bear financial losses arising out of chargebacks frequent in card not present transactions. To add to this is the infiltration of illegal products. It is all about reputation for banks and they prefer not piling on any risk. There is yet another rule that requires vape merchants to pay an annual registration fee of $1000. This fee is given to the credit card companies Visa and MasterCard to enable credit card processing against the sale of eCigarettes, glass water pipes, smoking accessories, bongs, hookahs, tobacco products and vape supplies.

Does this affect the possibility of getting a payment processor?

Yes, it does. Traditional banks, if they agree to provide a merchant account, ask for limitless documentation and a good credit rating. They might also demand a large reserve amount. But it does not mean that you have to work without a credit card processor. There are several third party payment processors experienced in providing high risk merchant accounts to businesses denied by banks and processors like PayPal, Square and Stripe. You can register with them to ensure uninterrupted payment processing for your business. It is also common to find fraudulent merchant account providers taking advantage of small and start-up eCig shops. They charge heavy rates and offer unreasonable terms to merchants desperate to get a payment processor. Hence, it is advised to choose wisely.

Talk to the Experts Only

Do you know many on our staff have been merchants themselves and have been shutoff by low-risk processors? We know what happens! You will find many high risk merchant account providers, but you need one with experience working in your industry. They should know the in and out of your business and shouldn’t hesitate being associated with it because of its reputational risk.

Payment Processing Solutions

As a vape merchant, you want to give your customers a painless payment experience. Mail order and Telephone order processing enables customers to place orders over the phone. Virtual terminals allow card not present transactions. The credit card processor you choose should accept Visa, MasterCard, Amex and Discover cards; you don’t want a customer left high and dry because they don’t have a credit card you accept. A vape merchant account also needs eCheck and ACH processing among its other payment solutions. Payment can further be made flexible if payment processors can integrate your account with shopping carts online.

Stay Safe

A vape shop is already known for its poor reputation. You cannot risk it further with unsecure payment systems that compromise customer data. It is important to hire a full PCI compliant payment processor. It instills confidence in the mind of your customers and keeps your business from running into further problems.

Upfront Rates, Fees and Pricing

A high risk merchant account need not be expensive and an all inclusive payment policy will ensure you get the best features at a fair price. Look for transparency in pricing so that you don’t need up paying exorbitant fees by way of hidden charges. You shouldn’t be paying for application or set up. If you have a good credit and processing history, you can use it to negotiate the cost of merchant services with your payment processor. Typically, the more payments you process, the lower you will pay in transaction fees. Read the fine print on your contract, so that you do not have to pay termination fees in case you choose to switch merchant providers.

Stay Compliant with Laws & Regulations

As a business, you should never find yourself on the wrong side of the law. An eCigarette business is high risk and heavily regulated. It is important that you are aware and stay complaint with the industry policies in your jurisdiction. A payment processor specializing in vape shops should be able to provide the legal counsel you need. You also need to check which vape supplies products are prohibited by your payment provider. eCigarettes, glass water pipes, smoking accessories, bongs, hookahs, tobacco products and vape supplies are age restricted products. Hence, it is a must to have age verification measures in place. Having a reliable credit card processor can make the difference to your eCigarette business. You just need to know the right places to look and the right features to look for.