Skip to content
IBS Payment Solutions

IBS Payment Solutions

  • Home
  • Blog
  • Contact Us
  • Merchant Account
  • High Risk Merchant Account
  • Credit Card Processing
  • High Risk Payment Gateway
  • Virtual Terminal for mail orders
  • ACH Payment Processing
  • Cryptocurrency Merchant Account
  • Forex Merchant Account
  • Casino Merchant Account
  • Dating Merchant Account

Recent Posts

  • How to Open a Gaming Merchant Account
  • How do I apply for an Online Poker Merchant Account?
  • Steps in Applying for Merchant Accounts Online
  • Knowing How you Can Save Much On Credit Card Processing Fees
  • Accepting Online Payments: Security Tips For Merchants

Categories

  • ACH and Check Processing Services
  • Adult Merchant Account
  • Bitcoin Merchant Account
  • Business services
  • CBD Merchant Account
  • Credit Card Processing
  • Credit Repair Merchant Account
  • Cryptocurrency Merchant Account
  • Dating Merchant Account
  • E-Commerce Merchant Account
  • Forex Merchant Account
  • Fund Transfer
  • Gaming Merchant Account
  • High Risk Merchant Account
  • High Risk Payment Gateway
  • International Merchant Account
  • International Payment Gateway
  • Merchant Account
  • MMJ Merchant Account
  • MOTO Merchant Account
  • offshore banking
  • Offshore Merchant Account
  • Online Casino Merchant Account
  • Secure Payment Gateway
  • Tobacco Merchant Account

Recent Comments

  • admin on How To Open And Operate Offshore Bank Account
  • MAREK KOZLOWSKI on How To Open And Operate Offshore Bank Account
  • admin on Third Party Merchant Account Services
  • admin on Accept payments with Online Gambling Merchant Accounts
  • admin on How to obtain Adult Merchant Account Solutions?

Archives

  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • June 2017
  • September 2016
  • August 2016
  • May 2016
  • January 2016
  • December 2015
  • November 2015
  • October 2015

Meta

  • Log in
  • Entries RSS
  • Comments RSS
  • WordPress.org

Tag: vape merchant account

High Risk Payment Solutions: E-Cigarette & Vape Merchant Account

High Risk Payment Solutions: E-Cigarette & Vape Merchant Account

Electronic cigarette has proven to be an excellent alternative to traditional cigarette.

Chinese pharmacist Hon Lik first commercially launched e-cigarette in 2003 with the brand name Ruyan. Since then the industry has only grown in leaps and bounds and is currently valued at more than $3.5 billion. The popularity of e-juices, hookahs and vaporizes has only further enabled the industry.

Millions have found a healthy alternative with E-cigarette and Vaping. With the explosive consumption of these alternatives, retail markets and online businesses have come up and become almost mainstream. With even big tobacco firms joining to make profit of off this blooming and dynamic industry.

As with every business, demand should be met with supply. And supply, not just in terms of products or services but also in terms of customer payment preferences.

The need for merchant services and online credit card processing will only grow exponentially with the growth in the industry.

Why is E-Cigarettes a risky business?

  • Since it is a relatively new industry, debate on whether e-cig is safe for health since the research done regarding the same is limited.
  • Changing policies- Legislators introducing new rules or changing existing policies that could affect selling as well as buying the products either way.
  • The existing industry regulations are quite stringent wherein banks should strictly ensure that those are applied to e-cig businesses during the reviewing process. Which means extra procedure & precaution taken on behalf of the bank that banks do not want to offer.
  • Undecided regulations on packaging and sale of e-fluids
  • The industry also has a lot more political involvment making processors wary.
  • Age Regulations- There are serious concerns over sale of e-cigs to minors.
  • Just like every other high risk business, E-Cigarette industry is also prone to high chargebacks. Customer unsatisfaction, denying product order or delay in delivery are a few causes resulting in chargebacks.

Financial institutions see the uncertainty surrounding the industry & its pending regulatory status will result in potentially high chargeback rates, frauds and other risks.

Obtain High Risk Merchant Account Solutions for E-Cigarette Business

Offering merchant account services would be a policy violation for most banks and processers.

But with an expanding industry that is in its top form, there are certainly a lot more merchant account providers welcoming e-cig merchants with open arms since its inception.

Merchant Account Services are not just limited to e-commerce businesses but also retails stores selling E-Cigarettes and related products, with processors offering Point-of-Sale (POS) systems and Virtual Terminals.

Businesses also need to understand that some merchant account providers will impose certain limitations like a specific monthly volume processing cap or rolling reserves due its risky nature. They are the risk mitigation tools used by providers to manage potential credit risks.

But over time, with healthy & stable processing history, low chargebacks and positive relationship with the merchant account provider, a merchant can negotiate on those points.

Businesses that are offered High Risk Merchant Account Solutions:

  • Online & brick-and-mortar electronic cigarettes business,
  • Vape stores,
  • Hookahs parlours,
  • Cigars and other related accessories

Find a merchant match for your business and book a consultation soon!

Posted on October 24, 2018November 21, 2018Categories High Risk Merchant AccountTags credit card processing, Ecigarette merchant account, Europe, high risk merchant account, merchant account, merchant account provider, merchant account provider in UK, vape merchant accountLeave a comment on High Risk Payment Solutions: E-Cigarette & Vape Merchant Account
Proudly powered by WordPress