Introduction to Vape Merchant Accounts
The vape industry is growing rapidly, with estimates suggesting it will be worth over $8.26 billion by 2025. However, vape shops and e-cigarette businesses are considered high-risk by many payment processors and banks, making it challenging to obtain merchant accounts for credit card processing.
Why Vape Merchant Accounts are High Risk
Several factors contribute to the high-risk classification of vape businesses:
Heavy government regulations
Relatively new technology with unknown long-term health effects
Appeal to teens and children (flavored e-juices)
Association with tobacco products
These factors make acquiring banks hesitant to provide debit or credit card payment processing for vape merchant accounts.
Securing a Vape Payment Processor
Historical Context
- Pre-2016: Regulations varied by state
- 2010: E-cigarettes reclassified from drug delivery devices to tobacco products
- 2016: FDA extended regulatory power to e-cigarettes
Finding a Vape Payment Gateway
When searching for a vape payment processor, be familiar with industry terms:
- Ecommerce Vape Shop
- Vape Accessories
- Vaping Store Online
- Online Vapes
- Vaping Shops
- E Cig Store
- Online E-cigarettes
Vape Merchant Services Challenges
- Strict FDA regulations on online and ecommerce retailers
- Risk of account freezes by acquiring banks
- Difficulty in obtaining high-risk payment gateways
Choosing Your Vape Payment Processing Solution
When selecting a payment processor for your vape business, consider:
Specialization in high-risk merchant accounts
Knowledge of the vape and e-juice industry
Relationships with multiple acquiring banks
Efficient customer service
Conclusion
Despite the challenges, it's possible to secure a vape merchant account with the right payment processor. Look for providers who:
Understand the unique needs of the vape industry
Have experience with high-risk merchant accounts
Can work on your behalf to get your account approved
By choosing the right payment processing partner, vape businesses can focus on growth and customer service, rather than worrying about payment processing issues.