E cigarette products have been an industry that’s seen great and constant growth over the past 5-10 years. Physical, face to face transactions always carry less risk, so you will often find large option for payment solutions for your shop or retail outlet.Recent studies show that approximately 10 new brands of e-cigarettes are launched every month.
There is no doubt that this industry is smoking hot, and entrepreneurs are taking advantage of it. However, banks don’t make it easy for new businesses and smaller businesses in the e-cig industry to get credit card transactions processed. Traditional financial institutions consider electronic cigarette and related businesses high risk, making it tough for them to get fair, cost-effective payment solutions. This is when iPayTotal comes in with a solution as a responsible high-risk e-cig merchant account provider that serves businesses worldwide.
Why are E Cigs High Risk?
The banks manage and consider many facts while approving the payments for these high-risk industries. The government has introduced really strict rule and regulation that has affected the new and old E-Cigarette companies. Some countries have also banned the sale of E cigars while other companies have the strict rule to sell these products. There is mandatory tobacco tax charged on such products, due to this E-Cigarette is considered of high risk. At iPayTotal, we promise to give you a simple solution for all the problems.Since the inception and release into the US markets, the e cig industry has remained relatively unaffected by significant legislation to regulate and control the industry. Even if there are few requirements by the card payment networks for compliance, some processors are becoming strict.
E-Cig Credit Card Processing
Merchants in the e Cig industry have certain requirements of their payment processor company to ensure the functionality and longevity of their merchant account services. Since e Cigarettes and vaporizers fall into a grey area category for many payment processors it’s important for merchants to ensure that their chosen service provider can handle any potential risk and changes to the legal or payment networks and their ability to accept e cig transactions.
Credit card processing companies charge a processing fee which is usually a percentage which is calculated by the processing amount. The amount of that percentage is regulated and it needs to be kept reasonable for any merchant account provider to compete. That’s the good news. The bad news is that other fees, like monthly fees and transaction fees, are not regulated and sometimes they are even hidden from view.
Merchants that decide to use a merchant accountwill have the option for direct integration into the acquiring bank, an important function for businesses because it can allow for better approval rates, faster authorizations, higher monthly volume caps and less restrictions.
Why Choose iPayTotal Solutions for Your business Credit Card Processing
iPayTotal has a team of experts and we also have partners with proven records when it comes to vape or e-cigarette sales. With everyone’s combined efforts, we assure you that both start-ups and existing companies will be nurtured. We provide tailored solutions, along with relevant recommendations so that you maintain compliance with industry standards.