When Your Vape Business Needs Payment Processing Solutions

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.