When Your Vape / eCig Business Needs Payment Processing Solutions
September 11, 2023
If you’ve read the news lately, you have noticed the growing number of vape, electronic cigarettes, and smoke shops opening. So you won’t be surprised to hear that the demand for vape merchant accounts is on the rise. In fact, researchers estimate the vape industry will be worth over $8.26 billion by 2025.
With this growth, it is a no-brainer high risk industry to break into, especially if you’re looking to start a vape small business. The vaping and e cigarette industry is subject to heavy government regulations. Because of these laws, vape shops must obtain high risk merchant accounts.
These factors may cause acquiring banking to pause any debit or credit card payment processing for vape merchant accounts since it is considered high risk. Before you open the doors or launch your online vape business, learn why you’ll need high risk merchant account solutions for your business.
Why Vape Merchant Accounts are High Risk
As mentioned before, there are factors about the vape industry that make major acquiring banks question a business. Before vape business owners start searching for high risk merchant account solutions for their vape shops, they should understand why a reliable credit card processing service is essential.
Because of this, it affects how likely a registered ISO MSP is to approve. In order for a vape shop to start accepting credit cards, the business needs a sustainable payment processor such as PayKings.
Securing A Vape Payment Processor:
Prior to 2016, US national regulations on e-cigarette and vape usage varied from state to state. There were no consistent regulations regarding use in a public space and laws limiting use by minors.
The Food and Drug administration considered e-cigarettes drug delivery devices under the Food, Drug, and Cosmetic Act until the decision was overruled in 2010 by a federal district court judge. It was then reclassified as a tobacco product. The FDA continued to propose new regulations on ingredients in e-juice and vaping devices. They officially extended their regulatory power to e-cigarettes in 2016.
Find Your Vape Payment Gateway
In order to find the most reliable vape payment processor, you should be aware of what terms are used when searching for vapes. To help you understand the vape industry better, here is a list of relevant words related to vaping:
- Ecommerce Vape Shop
- Vape Accessories
- Vaping Store Online
- Online Vapes
- Vaping Shops
- E Cig Store
- Online E-cigarettes
Regulations on vape products are strict. Because of this the FDA regulates online and ecommerce retailers that violate age and product restrictions. Acquiring banks know that due to these regulations, debit or credit card payment processing is too high of a risk. So they have been known to freeze cig merchant accounts once the underwriting process is complete.
Vape Merchant Services:
Although vape has been shown as a “safer” alternative to cigarettes, the technology is still too new for scientists to study the effects of vaping on human health. There are several factors which affect conclusions of vape products. On top of that, e-juices come in a variety of flavors that appeal to teens and children.
All these unknowns and the dangerous reputation tobacco products have earned over the years make it difficult to obtain high risk payment gateways. The risk of online vape shops make it difficult and risky to acquiring banks setting up your vape merchant account.
Choosing Your Vape Payment Processing Solution
PayKings specializes in vape merchant accounts which enables us to provide the most ideal electronic payment processing solutions for high risk merchants.
On top of efficient customer service, we have extensive knowledge of the vape and e-juice industry and have relationships with over 20+ acquiring banks.
We work on your behalf to get your vape and e cigarette merchant account approved. So you don’t have to waste time worrying about how will get a high risk merchant account. Go-ahead and forge your path in the vape industry. Apply for a vape merchant account with confidence. The experts at PayKings are your go to merchant services!
September 11, 2023 | High Risk Merchant Account | Guest Post