Vape Merchant Account Procedures for Online Sales

May 19, 2023 | High Risk Merchant Account | Dustin

Regulations, litigation, and questions over authorities have made it difficult to obtain a vape merchant account. Banks have classified these merchants as high risk.

Though each of the factors make it hard to get a vape merchant account, you can still obtain on with a high risk merchant account provider. It is important to stay current with industry standards and the regulations for vape retailers, especially for those who sell their products online and to successfully have access to eCommerce payment processing.

Know the Laws and Consequences for eCommerce Vape Merchant Accounts

In late-January 2018, vape stores in five U.S. states, filed federal lawsuits challenging a Food and Drug Administration rule that enables the agency to regulate vape and eCigs exactly the same way they do with cigarettes.

The retailers with vape merchant accounts are situated in Texas, Minnesota, Michigan, California, and North Dakota argued the 2016 FDA regulation, frequently called the “Deeming Rule,” since it deems vape products and e-cigarettes to become tobacco products, is unconstitutional.

In the suit, the retailers claim that the rule violates the U.S. Constitution’s free speech protections by requiring eCig and vape retailers to acquire the FDA’s approval before marketing information about their products health consequences. These  retailers have opposed federal regulations, stating that said regulations and rules will destroy modest businesses.

What’s Next for Vape Merchant Accounts?

It’s still possible to acquire an eCig or vape merchant account, even with all the uncertainty surrounding the regulations. High risk merchant account providers have many strategies they can use to offer the best possible payment processing solutions for eCig or vape retail businesses. Online retailers can start saving money, sooner, and with lower payment processing rates with PayKings, can they themselves charge higher fees for each transaction they make.

Many vape merchant account providers will offer those merchant accounts to businesses that keep and create a rolling reserve that is capped. With a reserve, a percentage of each transaction is stored in an account, which is used to cover chargebacks or fraud.

A reserve that is capped takes a portion of the trade that is successful until a specified, agreed upon quantity is reached. The vape merchant no longer has to place money in the reserve when the amount is reached. Reserves work best in situations where merchants are earning greater than $10,000 in profits each month.

Find a High Risk Merchant Account Expert

When you are a merchant that is considered to be high risk, you want to be sure to continuously manage the challenges you will face by staying ahead of the curve and in the know. Experts in the vape merchant account industry are more inclined to assist you to get approved, as they are well versed and  knowledgeable about the obstacles that come with eCigs and vape merchant retailers.

There are plenty of high risk merchant account payment processors and providers out there, and also with most of them will accept your application with the exchange of paying higher fees and facing limitations – for example, it might include monthly processing volume caps. It is important to make sure you do your research and even go as far as checking out client reviews before you move forward and sign a contract.

The Last Word on Vape Merchant Accounts

The eCig and vape merchant account industry, staying up-to-date with high risk providers, payment processors, and lenders as the litigation and law changes continue. There are many vape merchant account providers out there that understand there is a market for these products and will help you sell merchandise online, because it is also good for them.

Don’t just settle for a vape merchant account that is less than perfect for your business. Look around in a thorough way and weigh your choices. Regardless of the rates and the challenges, getting an eCig or vape merchant account is well worth it to have the ability to process payments online, and will clearly have a positive uptick on profit margins for your business.

PayKings is a vape merchant account provider that has helped many businesses find solutions for high risk merchant accounts that in the eCig and vape industry – we have created conditions and solutions for you specific business model that allows you to grow and expand in the future.