All you need to know about E-Cigarette Merchant Accounts
This article gives you detailed information about an e-cigarette merchant account. The industry of e-cigarettes is one of the fastest growing industries in the present decade. The reason behind its popularity is increased consumption of e-juices, vaping and hookahs. Smokers are quitting smoking normal cigarettes as they find e-cigarettes healthier than the traditional cigarettes that contain tobacco as the most important ingredient. Vaping is another attractive choice for those people who have never liked smoking traditional cigarettes. As per the ‘National Health Interview Survey’ conducted by the National Center for Health Statistics in the year 2015, at least 3.2 percent of the total number of people who smoke electronic cigarettes are those who have never used traditional cigarettes.
So, it cannot be denied that the industry of e-cigarettes is quite popular now. But, this does not make it easier for them to get approval of merchant account from banks. Smaller business and new businesses in the e-cig industry find it difficult to get transactions via credit cards processed. To Accept the payments from credit card, you need the help of a high risk merchant account provider to get approval of merchant account for your e-cigarette business.
How to setup anE-Cigarette Merchant Account?
Businesses selling vaporizers, hookahs, electronic cigarettes and other such products need to have an e-cigarette account. Due to high ratios of chargeback and ongoing regulatory alterations, banks do not approve accounts for high risk merchants. The reason is that traditional banks do not give their approval for these businesses.
So, an e-cigarette merchant who wishes to accept payment via credit cards needs to apply to some high risk processor of credit cards. Only a provider of high risk merchant accounts specializes in creating e-cigarette merchant accounts. So, you’ll get the customized solution for payment that you want. There are many providers who can give e-cig merchants approval in less than 24 hours.
The difference between a low-risk account and an e-cigarette merchant account
An e-cigarette merchant account is slightly expensive than the merchant account that is a low-risk one. An e-cig account can also have several other limits like delay in funding, a rolling reserve etc. It’s all depends on the circumstances of the business.
The best part about using an E-Cigarette Merchant Account is that it makes the experience of a customer better. Most of the limits that we mentioned earlier tend to disappear after the initial three months. During that particular time period, a merchant needs to display a successful and stable history of processing cards (credit cards).
Are e-cigarettes safer than traditional cigarettes?
Traditional cigarettes contain harmful ingredients like carcinogens (vinyl chloride and arsenic) and tobacco. A report published by Public Health England in the year 2016 revealed that e-cigarettes are actually 95% safer as opposed to traditional cigarettes. The best part about vaping is that it lessens chances of second-hand smoke. Vaping is basically inhaling vaporized water via an electronic cigarette, which is an inhaler operated by a battery. Vaping can also be done with the help of a personal vaporizer, like a hookah or a pipe. E-cigarettes make use of a cartridge known as the customizer along with an LED which lights up as soon as a person draws on that device. Cartridges for liquid fillers and e-cigarettes contain very less amount of nicotine or do not contain nicotine at all. Nicotine causes an adrenaline rush when one inhales it from a cigarette. Nicotine also causes a dopamine boost which is responsible for giving smokers a euphoric feeling. Since refills and cartridges do not have tobacco, health-conscious people vaping as the best alternative for chain-smokers for bidding adieu to tobacco addictions and therefore, reducing damages caused to second-hand smokers and saving themselves from several types of cancers, stroke and heart diseases.
What should one expect at the time of applying for an e-cig merchant account?
An e-cigarette merchant needs to prove to the processor of credit cards that he is running a legitimate and responsible business. An underwriter performs the task of accessing potential risks. When an underwriter reviews an application from any electronic cigarette or vaping business, he makes sure that the merchant has been following all the applicable laws. He also looks at the merchant’s bank statements, website and credit scores for getting a vivid picture of a merchant. Based on his assessment, he either declines or accepts the application. Once the application is accepted, getting your own E-cigarette merchant account need not be a problem.