A great many e-cigarette merchants get turned down by banks as well as the more conservative credit card processors for a number of different reasons. Understanding why is the first step to reversing that situation.
The only difference between e-cigarette merchants and others is that they sell a product that is considered to be high risk. This has very little to do with the adverse health effects of the product (unknown) but due mostly to do with the bank processors assessment of the business itself. e-Cigarette merchant accounts are considered High Risk by many banks and credit card processors.
Given federal restrictions placed on the sale of e-cigarettes to minors, merchants caught violating these terms can be shut down. This, combined with the deceptive marketing practices of some merchants and the high chargeback percentages, places the industry in the high-risk category. Traditionally, e-cigarette merchants have had to look to very expensive off-shore entities to process their VISA and MasterCard sales. This is no longer the case.
Online e-cigarette merchants sell not only electronic cigarettes online but also vaporizers and liquid nicotine refills as well. These sales can be facilitated by secure gateways and shopping carts but large banks and conservative processors will balk at allowing merchants in high-risk industries to join their ranks, even if the owner has excellent credit.
E-cigarette merchants that have been operating successfully online have sometimes found themselves dropped by their processors when their industry has been reclassified as high risk. Funds are typically frozen when accounts are closed, leaving the merchant unable to cover the cost or inventory or manage cash flows, thus seriously imperilling their businesses.
SecureGlobalPay specializes in e-cigarette and other ‘high-risk’ accounts. Our online application process is easy and transparent and your account can be approved within 72 hours. SGP charges no application fees and is prepared to extend services to merchants with a history of inconsistent credit.
SecureGlobalPay’s processing rates are fair and equitable. We occasionally do not require merchants to have their own VISA or MasterCard registration and are able to provide secure payment gateways. Merchants are required to keep their chargeback levels under three percent.