.jpeg)
Vape and E-Cigarette Merchant Account
General
Vaping as an industry has developed to give cigarette smokers a healthier alternative to smoking cigarettes. A "vape," or electronic cigarette, is a device that heats up a liquid infused with nicotine to create a vapor that the user would inhale. Vaping devices include pens, e-cigarettes, and hookahs. While vaping appears to be a healthier alternative to smoking cigarettes, there are still many health risks involved. Just like traditional cigarette and cigars, e-cigarettes and vape devices fall under FDA regulation. According to the FDA, any device that uses vape liquids is an electronic nicotine delivery system (ENDS). FDA regulations include not only ENDS but also liquids and accessories. While the vaping/e-cigarette industry is highly profitable, banks and credit card processors also consider it high-risk. Fortunately, securing a merchant account for your vape and e-cigarette business is easy with HRMPay. Simply fill out our quick form and a member of our Team will reach out to you to complete your application.
Why Are Vape and E-Cigarette Businesses Considered High-Risk?
The vape/e-cigarette industry is considered a high-risk industry for four main reasons. 1. Vape and E-cigarette products are heavily regulated by the FDA.2. Vape and E-cigarette products have an age-restriction.3. Vape and E-cigarettes may be considered a health issue.4. Vape and E-cigarettes business have a higher risk of chargebacks.
FDA Regulations and Age Restrictions
The FDA has banned certain vape/e-cigarette products, which can lead to questions with the approval of your merchant account. When a bank and payment processor underwrite and approve a vape/e-cigarette business, they are taking on the risk that the business could potentially sell unregulated products in violation of FDA rules.Depending on the state in which you live, FDA rules include:• Selling electronic nicotine delivery system (ENDS) only to customers 18 and up.• Checking the ID of everyone attempting to purchase ENDS who appears to be under the age of 27.• Not giving out free samples of ENDS including parts and components.• Not selling ENDS in vending machines.The legal age for vaping products/e-cigs is 18 in the United States, therefore, banks and payment processors take additional risk of proper age verification when purchasing vape/e-cigarettes, both online and in person. To further complicate matters, every state has different laws regarding the legal age for the sale of vape/e-cigarette products.Additionally, certain products like fruit-flavored juices and mint-flavored juices are banned by the FDA, creating further risk that a merchant could potentially sell a banned product.
Health IssuesSome major health organizations deem vaping healthier than tobacco products, however, they are still harmful. The FDA has concluded that there are no safe tobacco products, including ENDS. In addition to exposing people to risks of tobacco-related disease and death, the FDA has received reports from the public about safety problems associated with vaping products including:• Overheating, fires, and explosions• Lung injuries• Seizures and other neurological symptomsWhile many factors lead to vape merchants being deemed high-risk, the paramount reason is health/safety concerns and some products not being approved by the FDA. The FDA has applied rules for disclosure of vape/e-cigarette products. Some examples of ENDS include e-cigarettes, e-liquids, vape pens, e-hookahs, e-cigars, personal vaporizers, and electronic pipes. The FDA rules are as follows:• Check photo ID of everyone under age 27 who attempts to purchase e-cigarettes, e-liquids, or other ENDS.• Only sell e-cigarettes, e-liquids, and other ENDS to customers 21 and older.• Do NOT sell e-cigarettes, e-liquids, or other ENDS in a vending machine unless in an adult-only facility. • Do NOT give away free samples of e-cigarettes, e-liquids, or other ENDS to consumers, including any of their components or parts. • Do NOT sell or distribute e-cigarettes, e-liquids, or other ENDS without a health warning statement on the package. • Do NOT display advertisements for e-cigarettes, e-liquids, or other ENDS without a health warning statement.
Risk of ChargebacksAcquiring banks and payment processors underwrite merchant accounts based on risk. The unpredictable nature of vape/e-cigarette products and vape/e-cigarette legislation result in banks viewing your business as high-risk. Operating in the eCommerce space, in general, means that you run the risk of chargebacks. eCommerce is already considered high- risk because customers can easily dispute transactions with their issuing bank when unhappy with a purchase or forgot that they made an online purchase. This, added with the misconceptions surrounding vape/e-cigarette products, means that your business is considered high- risk for banks. HRMPay, however, has solutions for you to obtain a vape/e-cigarette Merchant Account. Chargeback ProtectionOur multi-bank processing capabilities help high-risk merchants prevent high chargeback ratios, but we also work hard to help our vape/e-cigarette merchants protect their bottom line by preventing unnecessary chargebacks. HRMPay provides merchants with technology designed to identify vulnerabilities within their system to limit instances of unjustified chargebacks.Some of the ways vape/e-cigarette merchants can prevent fraudulent chargebacks on their own include:• For brick-and-mortar retail locations, train employees to ask for photo identification with all credit card transactions and have them double check that the name is the same on both cards. • For brick-and-mortar retail locations, utilize time-stamped video surveillance for the cash register area. Be sure that the video captures the customers’ faces. This can be used to cross-reference with the time stamp on the credit card transaction and provided as additional evidence in disputing chargebacks• Retain all credit and debit card receipts. File them with care and keep them easily accessible in case a chargeback is initiated, and proof of the transaction is required.• Never process any transaction that is suspected of being fraudulent without confirming the information with both the customer and card-issuer. Keeping Vape/E-Cigarette Merchant Accounts in Good StandingAs a new industry, it is important that vape/e-cigarette merchants maintain their accounts with banks and credit card processors. Building good histories will increase the likelihood that banks eventually see vape/e-cigarette products merchants as a legitimate and viable business that they are willing to work with. Some things merchants can do to keep their accounts in good standing include:• Maintain a good history with credit card processors• Consistently perform a high sales volume• Keep a high balance in business accounts• Dispute chargebacks whenever possible and back up disputes with strong evidence• Remain transparent in all communications with your banks and payment processorAdhering to these standards is something any business should strive for, however, for a high-risk industry, it is more important than ever. In addition to creating a better name for the industry, merchants who keep their accounts in good standing increase the chances of raising their sales potential and processing limits.
Risk of ChargebacksAcquiring banks and payment processors underwrite merchant accounts based on risk. The unpredictable nature of vape/e-cigarette products and vape/e-cigarette legislation result in banks viewing your business as high-risk. Operating in the eCommerce space, in general, means that you run the risk of chargebacks. eCommerce is already considered high- risk because customers can easily dispute transactions with their issuing bank when unhappy with a purchase or forgot that they made an online purchase. This, added with the misconceptions surrounding vape/e-cigarette products, means that your business is considered high- risk for banks. HRMPay, however, has solutions for you to obtain a vape/e-cigarette Merchant Account. Chargeback ProtectionOur multi-bank processing capabilities help high-risk merchants prevent high chargeback ratios, but we also work hard to help our vape/e-cigarette merchants protect their bottom line by preventing unnecessary chargebacks. HRMPay provides merchants with technology designed to identify vulnerabilities within their system to limit instances of unjustified chargebacks.Some of the ways vape/e-cigarette merchants can prevent fraudulent chargebacks on their own include:• For brick-and-mortar retail locations, train employees to ask for photo identification with all credit card transactions and have them double check that the name is the same on both cards. • For brick-and-mortar retail locations, utilize time-stamped video surveillance for the cash register area. Be sure that the video captures the customers’ faces. This can be used to cross-reference with the time stamp on the credit card transaction and provided as additional evidence in disputing chargebacks• Retain all credit and debit card receipts. File them with care and keep them easily accessible in case a chargeback is initiated, and proof of the transaction is required.• Never process any transaction that is suspected of being fraudulent without confirming the information with both the customer and card-issuer. Keeping Vape/E-Cigarette Merchant Accounts in Good StandingAs a new industry, it is important that vape/e-cigarette merchants maintain their accounts with banks and credit card processors. Building good histories will increase the likelihood that banks eventually see vape/e-cigarette products merchants as a legitimate and viable business that they are willing to work with. Some things merchants can do to keep their accounts in good standing include:• Maintain a good history with credit card processors• Consistently perform a high sales volume• Keep a high balance in business accounts• Dispute chargebacks whenever possible and back up disputes with strong evidence• Remain transparent in all communications with your banks and payment processorAdhering to these standards is something any business should strive for, however, for a high-risk industry, it is more important than ever. In addition to creating a better name for the industry, merchants who keep their accounts in good standing increase the chances of raising their sales potential and processing limits.
Vape/E-Cigarette Products HRMPay Supports
HRMPay supports businesses selling vape/e-cigarette products and operating in locations where vape/e-cigarette products are legal. Supported products include:• Vape Pens• E-Cigarettes• Vape Juices• Coils• Vape Cartridges• Rechargeable E-Cigarettes• Vape Tanks• Vaporized Accessories• Batteries• Mods• Chargers• Drip Tips• Hookahs• Hookah Pens• Nicotine Salts
Vape/E-Cigarette Credit Card Processing Rates & Fees
Choose a vape/e-cigarette merchant processor who understands your business needs, industry-specific aspects, and budget. As a high-risk merchant, you’ll likely be faced with higher fees than low-risk merchants. While fees shouldn’t be the only reason you decide to work with a merchant services provider, they should be considered since it will determine how much money your business pays to process credit cards. The rate will be determined once your merchant account is approved.
The exact credit card processing rate you can expect for your vape/e-cigarette business depends on several factors, including your business’s level of risk and whether you sell your products online or in person. HRMPay will review your application and assess these factors. Rates for vape/e-cigarette payment processing typically range from 2.85% to 5.5%. There could be other credit card processing fees like monthly fees, interchange fees, and related merchant account fees. That said, we offer competitive rates and transparent pricing with no hidden fees or long-term contracts.
What Documentation Is Required to Obtain a Vape/E-Cigarette Merchant Account?
1. Color Copy of Driver’s License or Government Issued Photo ID2. Document showing Proof of Company Registration (Sole Proprietorship, LLC, ETC)3. Voided Check/Bank Letter4. 3 Months Bank Statements 5. 3 Months Processing Statements (if available)6. EIN Letter7. Articles of Incorporation8. Fulfillment Agreement (if applicable)9. List of suppliers for vape/e-cigarette products10. Lab Results / Certificates of Analysis for products sold on website11. Website 1. URL/Website must have Age Verification and FDA warnings2. Website must have legal company name and address listed on footer of landing page; terms & conditions page; privacy page; refund/return policy; shipping policy; contact page with customer service number and card brand logos on the checkout page.
Vape/E-Cigarette Merchant Account Types that HRMPay Supports.
HRMPay offers the following solutions for vape/e-cigarette merchant accounts:• Vape/E-Cigarette Retail: Solutions that are best suited for traditional brick and mortar retail settings with reliable internet. A retail vape/e-cigarette merchant account allows you to accept credit/debit transactions in-person or card-present.• Vape/E-Cigarette eCommerce: Solutions for vape/e-cigarette products and accessories. For eCommerce vape/e-cigarette merchants, our state-of-the-art payment gateways provide you with everything you need to accept online payments securely. • Vape/E-Cigarette Payment Gateways: HRMPay offers a multitude of gateway options for our merchants. Whether you are a high-volume eCommerce merchant or a newer merchant, we have the best solutions for those merchants who make most sales via eCommerce. • Vape/E-Cigarette MOTO (Mail Order/Telephone): With a virtual terminal, you can accept payment details from your customers via phone and email. Our virtual terminals’ have an easy-to-use interface which makes it easier than ever to accept card-not-present payments.• Vape/E-Cigarette Mobile: Mobile vape/e-cigarette merchant accounts allow businesses to accept in-person payments via your cellphone. These solutions are perfect for selling at special events/conventions. Vape mobile merchant accounts are typically priced similarly to retail accounts as the chargebacks/fraud are usually relatively low.
Why Open a Vape/E-Cigarette Merchant Account with HRMPay?
1. To Accept Credit Cards: If you operate either in a brick-and-mortar retail location or an online website, you’ll need to be able to accept major credit cards to maintain a successful business.
2. Payment Gateway and Platform Integration: Our payment gateway integration into many of the popular website platforms, including Shopify, WooCommerce, Magento, and WordPress. This means that you won’t have to switch your platforms after spending long hours and tons of money developing the perfect website.
3. Customer Service: Our Customer Service Team understands the vape/e-cigarette industry and how to keep you processing efficiently and effectively.
HRMPay provides you with the option to accept credit card payments for your vape/e-cigarette business either in your retail location or on your website, giving you the best opportunity for success. When you partner with HRMPay, you also partner with a large network of payment solutions providers. We offer outstanding fraud and chargeback protection, as well as exceptional customer support. We have strong relationships with many of the largest acquiring banks who work with high-risk merchants both in the United States and offshore.
We utilize a variety of processing techniques to ensure that vape/e-cigarette merchant processing is a smooth and simple process for our high-risk accounts. Some of the features of your vape/e-cigarette merchant account include:
• Multiple payment processing relationships to assure placement of your merchant account
• 24–48-hour settlement to merchants
• Secure payment gateways
• Chargeback alerts
• Chargeback disputes
• Fraud prevention and protection tools
• Competitive processing rates
• Quick approval of your merchant account
In addition to providing outstanding customer service, HRMPay supports integrations directly into the software, systems, and tools you already utilize within your operations. We maintain a variety of partnerships with industry-leading payment gateways and payment platforms to include:
• Authorize.net
• NMI
• USAePay
• WooCommerce
• Magento
• WordPress
• Shopify
• BigCommerce
We can integrate with the most popular platforms to help you successfully sell your vape/e-cigarette products.
Once HRMPay has your merchant account boarded, you will be ready to transact your vape/e-cigarette transactions promptly, effortlessly, and conveniently!
Sign up today! quick form
