Getting a Vape Store Merchant Account
The Vaping industry is booming and it is expected to grow to over $29 billion by 2022. However, vape stores and retailers face many challenges. One key challenge is to find a vape store merchant account to process credit and debit card payments. Even though vaping remains legal in many countries and states, merchant account providers and banks tend to stay away from this industry as it is considered high-risk merchant processing.
Why is the Vape Industry Considered High Risk?
One would think that a vape store would not be considered high-risk by a payment processor, but there are a number of key reasons why this is so. Firstly, many municipalities across the states are banning the public use of vaping, leading to a lot of concerns over the product’s long-term legitimacy.
Another reason is that dubious health risk claims associated with vaping are considered fact and spread throughout the media, leading to more legal ramifications for the product. Apart from this, payment processors also believe that vaping industry is prone to increased number of chargebacks. These primary reasons have led payment processors and banks to force high rates upon their transactions or stop providing merchant account services to vape stores and retailers entirely.
Vape stores and e-commerce sites may consider adding Chargeback Alerts to help offset their chargeback ratios, should they see them trending higher. Here is another resource to help Mitigate Chargeback Exposure. Remember, reducing chargebacks is the key to keeping your merchant account in good standing.
How to Get a Vape Store Merchant Account?
If you wish to accept debit and credit card payments, you will need to find a payment processor that can openly support your vaping business. Since your business belongs to the high-risk industry, it is recommended that you limit your search to high risk processor. This will save you a lot of time and hassle.
Choosing a High-Risk Merchant Account Provider:
There are many high-risk merchant account providers that work with retail vape stores and businesses. Follow these tips to make sure that you choose the right one:
- Read Online Reviews: Just like vape businesses, not all high-risk merchant account providers offer the same quality customer experience. Reading third-party online reviews of the providers based on recent customer experience is one of the easiest ways to separate the good from the bad.
- Look for Providers That Specialize in Vape: Find a merchant account provider that specializes in the vaping industry to make sure that you will be getting the services that are designed specifically for your specific business needs.
- Compare Service Quality: Merchant account services are something that business owners tend to forget about until a problem occurs. When this happens, a quality service and help is invaluable. So, make sure to compare service quality among different providers before making a decision.
How to Apply for a High-Risk Vape Shop Merchant Account?
Applying for a vape shop merchant account is a straightforward process. Most high-risk merchant account providers offer an application and setup process that is fast and easy. Following are the steps you will need to take:
- Visit the provider’s website and complete the online application process.
- Digitally sign the application.
- Securely upload all the required documents and details.
- Wait for approval. Once you are approved, the merchant account provider will provide a quote and have you set up and running. The entire process can take about 48 hours.
The Bottom Line
Although it seems a bit unfair, the vaping industry has traditionally been considered high-risk. However, that doesn’t mean you should be restricted to poor service and high rates. You deserve a solution that fits your needs and delivers the best outcomes. Fortunately, it is available in the form of high-risk merchant account. Getting a vape store merchant account is easy as long as you do your research and follow the proper guidelines. The above-listed tips will help you in this regard.
Merchant Account For Vape Shops
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About The Author
Mark Sands, co-founder of High Risk Merchant Account LLC, an authoritative expert in the high risk merchant account space. Mark has decades of experience in the payment industry & enjoys writing on entrepreneurial related topics.