Whats an e-cig?
An e-cig, the abbreviated term for electronic cigarette, is a cigarette alternative that offers a healthier alternative to smoking than traditional cigarettes. While there are many studies that confirm and others that deny the different effects one form of smoking has versed the other, the undeniable truth is that the electronic cigarette industry has grown, creating a signification demand for e-cig merchant services around the world.
Comprising of the electronic cigarette (also known as a vaporizer) and the liquid (sometimes referred to as e-liquid or e-juice), a starter kit can be relatively affordable for beginners looking to start or for smokers looking to change to a smoother product. While the cost of the e-cig is substantially more than the liquids, the ongoing sales of liquids provide a constant sales channel for merchants and has contributed to the ongoing growth of the industry.
When the trend first hit the marketplace, there were few restrictions and guidelines that manufacturers, marketers or retailers had to follow in order to legally sell these devices and products. As the government recognized the growth in the manufacturing and sale of electronic cigarettes and e-liquids, legislation was enacted to regulate these products, giving the FDA authority to oversee the industry.
What makes e-cig merchant services different?
While the industry is still relatively new and future regulations and restrictions are unclear, merchants need to work with a payment processing partner that understands the industry and can help in the future with any changes or regulations that could possibly affect sales or marketing. Many banks and payment processors might not fully understand the industry and have listed the ecig industry as a high-risk business type due to the perceived risk of high chargebacks and potential for future problems that might be associated with this industry.
Working with a merchant services provider that is familiar with the electronic cigarette industry can help merchants find the best companies to partner with for a long-term relationship. An e-cig merchant services provider will have a network of specialized banks that understand both the risks today of the industry and the potential for regulatory changes, eliminating the risk of excessive fees or other problems that could happen if using other banks and payment processors.
What is needed for e-cig merchant services?
Similar to other tobacco products, merchant accounts for electronic cigarettes will require additional documentation to ensure to the payment processor and merchant acquirer that the business is in full compliance with local and federal guidelines. Merchants will need to provide website precautionary services such as age verification and, with some payment processors, potentially the need for a delivery signature confirmation for orders placed online.
As with tobacco, merchants will generally need to understand they will be closely monitored to prevent any potential violations. These precautions usually involve a thorough website review along with registration with the card networks stating that the business and its merchants understand the potential risks of selling this product in a card not present environment and that they will ensure that they remain in full compliance for the life of the merchant account.
Where can I find the best e-cig merchant services?
There are many companies online that offer e-cig merchant account e-cigarette credit card processing services, but its dependent on the merchant to ask the right questions to make sure they partner with a merchant services provider that can deliver on the promised services. At Tobacco Merchant Services, we specialize in electronic cigarette merchant account and other tobacco merchant account services, providing our customers with industry special solutions at the lowest possible rates.
Contact one of our e-cig merchant account specialists with any questions or for more information about what we can offer businesses looking to sell electronic cigarettes online.