Applying For A Vape Merchant Account
The number of vape merchants has shot up in recent years. However, this hasn’t made merchant account providers any less skeptical of the business. Because vape sellers have to pay attention to some strict legislation, and the chargeback rate is high, these businesses are defined as high-risk. Most payment processing options normally available to businesses will not go near any accounts deemed to be of a high risk. They feel that it would impact their bottom line.
It isn’t uncommon for online vape sellers to sign up to PayPal and similar solutions. Their automatic account opening process means that you can start accepting payments within a day. However, if you read their terms and conditions, they do reserve the right to shut down high-risk accounts. This means that while you may be able to accept payments using their system for a while, they will eventually close your account down. This means two things:
- You will no longer be able to accept payments
- You may be denied access to any funds in your account until a holding period has been completed. This can last as long as six-months!
Of course, neither of these are a good thing. Many vape shop businesses have lost everything that they have worked for overnight simply because they chose the wrong payment processing solution to begin with.
Use our fast application to get a custom tailored merchant account that fits your needs.
Vape Merchant Account FAQs
What Happens If A Credit Card Processor Shuts Down The Merchant Account For A Vape Store?
Sadly, there is not a lot that you can do. If a payment processor closes down your merchant account, there is no way you can appeal the decision. There are processes in place, and if a payment processor decides that you are too high of a risk, then they do not want to deal with you. Simple as that. The same goes for any funds that they hold in your account. They have a legal right to hold onto this for up to 6-months in order to deal with any potential chargebacks. This means that you cannot rely on that cash for that long.
What does this mean? Well, it means that you will need to get a brand-new vape merchant account as soon as you can. The longer you leave it, the longer your business will not be able to receive money. This means that you will need to work with a high-risk payment processor, like eMerchant Authority, to help you out when it comes to getting a new merchant account and payment system. We take the headache out of the process. This ensures that you can be dealing with your customers sooner as opposed to later.
I Own An Online Smoke Shop, How Can eMerchant Authority Help Me?
When you run an online business, the ability to take payments online is absolutely vital. This means that one of the first things you will need to do is source a merchant account from a reputable vendor. The problem? This is something that is far, far easier said than done.
The problem is that smoke shops, or vape shops in general, are regarded as high-risk merchants. Due to the higher than normal risk that the merchant account provider could lose money if they work with smoke shops, most are not going to agree to work with them. This means that without working with a company that specializes in high-risk merchant accounts, the online business has no way of taking payments. This is where eMerchant Authority comes in.
Our business has been built to accommodate those that find it difficult to obtain high-risk merchant accounts, particularly those that are working in the vape industry. We make it our mission to find a merchant account that is perfect for your business. We will help your business get paid utilizing companies that have proven that they do not mind which legal business that you are in.
Because our process is so refined, we are able to accomplish this in under 48-hours, in most cases.
Do You Need A Merchant Account To Sell Vape Paraphernalia?
Even if you are not selling actual vape liquids and the like, you are still classified as a high-risk merchant. Therefore, if you are selling paraphernalia, you are still going to need to use a company that specializes in high-risk merchant accounts.
The same will apply to any accessories related to smoking.
The thing is that in this day and age, you can’t really avoid selling items online. It is probably how the vast majority of vaping companies get their business. While you can skip using high-risk merchant accounts if you sell in a store only, it is not going to be worth it. You will never be making the most amount of money that you can from your business. In fact, there is a strong chance that you will be alienating many nof your current customers instead. If they find out that they cannot make a purchase over the telephone or online, then they are going to go somewhere else. Luckily, working with a high-risk merchant account provider will help to aleviate all of these issues, and then best part is that it won’t be that much effort to apply for one. If you want your business to be taken seriously, you have no excuses.
Why Are Vape Retailers Classified As High-Risk?
It is no secret that the vape industry is heavily regulated by the FDA. This means that any business selling products in the vape business needs to conform to strong legislation. The way in which payments are dealt with will also need to conform to this legislation. Right away, this is something that is probably going to turn most payment processors off. They do not want to spend the time checking whether a business is following the law. They also do not want to take the time to put into place processes that ensure that they are handling payments properly too.
Perhaps the biggest issue here is the fact that it is not legal to sell vape-related items to anybody under the age of 18. Since you are not going to be meeting the person that is purchasing online ‘in person’, you have no guarantee that they are 18. This is something that could open up a lot of legal liability if something goes wrong with the sale. Again, this is something that most merchant account providers do not want to be dealing with.
Finally; this is an industry that has a higher-than-normal chargeback rate. Even if the other issues were not in place, the high chargeback and fraud rate is probably going to be enough to scream “this is a high-risk company”.
What Issues Will You Have If You Apply For A High Risk Merchant Account?
Companies like PayPal will deal with you. Initially. This is because they pride themselves on opening payment processing solutions quickly. This is how they make their money. However, just because you have opened an account with them does not mean that you are in the clear. Once PayPal starts to notice a lot of transactions going through your account, they will start to investigate the type of business that you are doing. If they believe that you are a high-risk account, your PayPal account will be closed.
This is something that is going to continue to happen if you are not working with a high-risk merchant account provider like eMerchant Authority, you will be dealing with closed account after closed account. This is not a good look for your business by any stretch of the imagination.
The main issue you will face is tracking down a high-risk merchant account that will accept you. You will often have to work with specialists in the industry. This will be a company that already built up connections with banks. That is what eMerchant Authority does. Our job is to find you a merchant account that will work with high-risk clients like your business. At the same time, we will try to ensure that the costs of using this merchant account and payment processor system are kept as low as possible. This means helping you to save as much money as possible for your business.
The Benefits Of A High-Risk Merchant Account For Vape
The main benefit is that you do not have to wake up wondering whether your merchant account was closed overnight. Since high-risk merchant accounts are provided by companies that know you are of a high-risk, they are not going to shut you down due to the nature of your business. As long as you make sure that you are conforming to the terms and conditions they laid out in your contract, the account will always be there for you to use.
The reason we are able to help you source a quality merchant account for your business is because of the connections we have built up over the years. We work with several banks to ensure that we find the right option for your business. All of your payments will go through the fantastic payment gateway we have built, which helps to keep transaction fraud down to the absolute minimum.
If you want to open a high-risk vape merchant account, you can start the process with eMerchant Authority today.
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