Electronic cigarettes, also known as e-cigarettes, e-cigs, and vapes, are becoming an increasingly popular alternative to traditional tobacco products. E-cigarettes deliver nicotine effects without producing smoke, instead emitting water vapor. This shift has led to a rise in vape shops and online vape retailers, thereby increasing the demand for e-commerce merchant accounts. The e-cigarette merchant account industry often finds itself in a grey area with many payment processing companies due to regulatory uncertainties.

Merchants in the electronic cigarette and vape industries have experienced the impact of regulatory changes and tightening underwriting guidelines. It’s not uncommon for an electronic cigarette payment processor to require documentation similar to that of tobacco businesses. Working with an experienced vape shop merchant account provider can help ensure businesses have reliable and affordable payment processing.

What is an Electronic Cigarette Merchant Account?

Once a merchant secures merchant services, the payment processor or merchant services company will provide a credit card terminal; this could be a physical POS system/credit card machine or an online application such as a payment gateway or virtual terminal. Customers making purchases can either swipe or dip their cards at a retail storefront, or enter their card information through a secure payment gateway on their computer or mobile phone.

When the card account information is captured by either a terminal or gateway, the transaction information is encrypted in the payment terminal and sent as a file through the acquiring bank to the payment card network. This network, managed by major card companies, decrypts the information, determines the customer’s card-issuing bank, and starts the verification process. The customer’s bank performs a fraud check and confirms available credit. After verification, a response to the authorization request is sent back to the merchant location.

The authorization process takes only seconds before informing both the customer and the merchant of the result. A transaction receipt is then printed in the merchant storefront’s credit card machine or displayed on a secure checkout page.

Vape and e-Cig Merchant Accounts

Merchants selling e-cigarettes or e-juices can greatly benefit from using a vape merchant account designed for their business. Vape merchant accounts set up for online or storefront sales will be properly established with the banks. The financial industry sometimes changes its stance on certain types of merchants if industries are deemed too risky, often based on changes in the legal or regulatory environment.

Partnering with an e-cig merchant services company specializing in tobacco and electronic cigarettes can help ensure that any sudden regulatory changes affecting the industry can be managed without disrupting business. This means that a specialized e-cig merchant account processor will have several options to quickly and seamlessly adjust their e-cig merchant accounts to prevent any loss of credit card processing services.

Advantages of Online Vape Credit Card Processing

Merchants in the e-cigarette industry have specific needs and requirements from their payment processors to ensure the functionality and longevity of their e-cigarette merchant account services. Since e-cigarettes and vapes fall into a grey area for many card processors, merchants must ensure that their chosen service provider can handle any potential changes to the legal environment or payment networks.

Online merchants using an e-cig merchant account instead of a sponsored payment account have the option for direct integration into the acquiring bank. This is important for businesses as it can allow for better approval rates, faster authorizations, higher monthly volume caps, and fewer restrictions than most merchant accounts placed through an eWallet or similar type payment account system.

Another important aspect for online card processors is the functionality of the business’ billing model, as most e-cig companies generally offer two types. Working with a bank that can provide merchant accounts for both one-time sales or a subscription re-billing program can give merchants the flexibility to offer different products and services without creating problems at the payment processor.

Internet-based merchants will also need to consider the payment gateway they partner with for integration. Working with a PCI Compliant tobacco payment gateway ensures that all online processing of transactions is secure. Fast authorizations, extensive reporting, and robust transaction management features distinguish the quality of gateway services.

Pricing for Vape Merchant Accounts

Most e-cigarette merchant accounts use either tiered pricing or cost-plus pricing, also known as interchange-plus pricing. Both provide businesses with complete e-cigarette merchant account services with various fees for account services, network services, and other transactions.

The tiered pricing method charges merchants on a scale that varies depending on the customer’s card and acceptance method, among other factors. The cost-plus pricing model discounts every transaction the same amount regardless of the type of card or acceptance method. Merchants opting for this pricing system almost always save significant amounts on payment processing costs.

Required Documents for Vape Merchant Account Services

When seeking an e-cigarette or vape merchant account, underwriters generally have a list of required documents. Providing these documents from the start will help merchants have their vape or smoke shop approved for merchant services faster. Commonly requested documents include a completed application, copy of government ID, proof of business, recent bank statements, and recent merchant account statements.

Prior financials are also an important part of the underwriting process for acquiring banks. Understanding how the business operates and is managed plays a big part in the decision-making of vape merchant account applications. Due to increasing regulations, underwriters might request additional documentation when reviewing an online e-cigarette merchant account application.

Paywise Solutions will always assist merchants in understanding what documents need to be submitted with every application. This helps businesses receive their approvals in a timely fashion without much hassle by the acquiring bank’s underwriting team.

Apply for Vape Merchant Services from Paywise Solutions

Paywise Solutions provides top-notch vape payment accounts in the industry with our retail and online electronic cigarette credit card processing services. Our solid e-commerce payment relationships ensure that e-cigarette companies can continue growing their businesses without interruption of services.

Our fast application process allows vape merchants to set up and process transactions almost immediately. Working with Paywise Solutions ensures merchants have a secure e-commerce processing service. Whether merchants sell e-cigarettes online or through a retail storefront, Paywise Solutions can accommodate.

Merchants with questions or needing more information about e-cigarette credit card processing or online e-cigarette merchant account services are welcome to contact us. Our helpful representatives will assist merchants in the vape industry with their needs.