When Your Vape / eCig Business Needs Payment Processing Solutions

December 5, 2018 | Financial Problems | Jessyka Lee

If you’ve read the news lately, or have noticed the number of vape (or e-cig, e-juice, e-liquid) shops cropping up in your community, you won’t be surprised to hear the vape industry is on the rise. In fact, researchers estimate the vape industry will be worth over $8.26 billion by 2025.

With this astronomical growth, it would seem like a no-brainer industry to break into especially if you’re looking to start a small business. Unfortunately, this is not the case. The vape industry is subject to heavy government regulations, and currently, not much research about the lasting effects of vaping has concluded.

These factors may cause many acquiring banks pause, and debit or credit card payment processing for vape merchant accounts 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 a few caveats about the vape industry that make major acquiring banks quaver. Before you start searching for  high risk merchant account solutions for your vape shop, learn why you can’t just go with any old payment processing service.

Government Regulation:

In the US prior to 2016, 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 and reclassified as a tobacco product. The FDA continued to propose new regulations on ingredients in e-juice and vaping devices until 2016 when they officially extended their regulatory power to e-cigarettes.

Regulations on vape products are volatile and the FDA takes action on online and brick and mortar 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 and have been known to freeze vape merchant accounts once their underwriting process is completed.  

Reputational Risk:

Although vape has been billed as a “safer” alternative to cigarettes, the technology is too new for scientists to study the long-term (if any) effects of vaping on human health. On top of that, e-juices come in a variety of fruity and candy flavors that appeal to teens and children. All these unknowns and the dangerous reputation tobacco products have earned over the years don’t look good to acquiring banks setting up your vape merchant account.

 

Don’t Be Discouraged, Choose the Right Payment Processing Solutions

We at PayKings specialize in vape merchant accounts which enables us to provide electronic payment processing solutions for high risk merchants. 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 merchant account approved so you don’t have to waste time worry about how will get a high risk merchant account.

So go-ahead, forge your path in the vape industry and apply for a vape merchant account with confidence. We at PayKings have got your back!

December 5, 2018 | Financial Problems | Jessyka Lee