ECigarettes, eCigs or vape are a relatively new industry, and as such, large banks and payment processors have deemed the industry high-risk. However, the eCig industry isn’t large enough and there isn’t enough information easily available about how the industry operates. At iPayTotal we’ve put time into analyzing the eCig& vape industry and the ways that merchants of electronic cigarettes tend to conduct their businesses. We’ve catered merchant accounts that are designed to fit the unique needs of an industry that is basically brand new and experiencing exponential growth year after year.
What is the Ecig Industry?
The e-cigarette industry is a more than $3.5 billion industry and rising thanks to the increased popularity of e-juices, hookahs, and vaping. Ex-smokers have discovered e-cigarettes to be a healthier alternative to traditional tobacco-containing cigarettes. Vaping also seems attractive to those who have never smoked a traditional cigarette.
According to the CDCsurvery, over 9 million Americans were using e-cigarettes/vape regularly as of the end of 2015. This number continues to grow as the industry becomes more mainstream. This constant growth attracts newcomers to the industry every day. In fact, as of 2017, there were more than 12,000 retail stores in the United States selling e-cigarettes or e-juice.E-cigarettes doesn’t fall within the scope of existing national legislation on tobacco production use and distribution yet pose greater health risksimilar to regular cigarettes according toexperts which is not good for health.
Why is the Ecig Industry High-Risk?
- The banks that credit card processors and merchant services providers process through are exceedingly sensitive to anything that might affect their public image. For this reason, any industry that is considered “high risk” by the merchant services provision community, becomes truly high risk.
- When credit firms like visa and American express believe that working with certain types of retailers harms their public image, they often withdraw support. It’s a common occurrence that affects tobacco merchants, alcohol distributors, firearms dealersand of course, retailers who sell and distribute vaping supplies and equipment.
- The uncertainty of this industry because it is still a new concept for market and government has still not cleared the laws to govern how electronic cigarettes and vapes can be sold and consumed which scares many banks and processor.
Benefits of an e-cigarette merchant account
E-cigarette merchants, and the with businesses that sell e-cig merchandise, are rarely approved for payment solutions by traditional banks. This is due to the regulatory challenges and typically high chargeback ratios of the industry, thus rendering it ‘high-risk’ in the eyes of banks reluctant to provide traditional solutions.
Merchants in high-risk industries like e-cigarettes need to apply to an online payment solutions provider like iPayTotal if they wish to process sales via credit card. Apply now and get approved in as little as 24-48 hours.
iPayTotal’sTailored Solutions for High Risk Industries
Having trouble finding a reasonable vape merchant account for your eCommerce website? Need vape solutions? E-Cigarettes are considered to be high risk in the online merchant account world and credit card processing solutions can be really difficult to find. The vaping industry has boomed into a billion-dollar industry and the best way to expand your market share is with an online presence. If you’re looking for a way to accept credit & debit card payments for your e cigarrette/vaping business, fill in an application and we will be in touch within 48 hours! IPayTotal e cigarette merchant accounts improve the customer shopping experience and help grow your sales!