If you are planning to set up an online vape shop, the first obstacle would be to find merchant services that are willing to accept your business. It’s a business belonging to high risk category, and most account providers may turn down your offer. Payment processing platforms like Paypal or Even Square have frozen many high-risk merchant accounts in the past. Vaping is a billion dollar industry, but banks have not been in the favor, for long. However, even with high-risk businesses, you can get credit card processing services.
Factors Affecting Online Vape Shops
The largest risk factor for a bank is the chance of fraudulent charges or chargebacks. Given the fact that accounts for vape shops are considered highly risky, it becomes more difficult to get credit card processing. Any type of card-not-present transaction is highly risky. We also have FDA rules that have direct impact on the type of items you are offering as a merchant. Without registration and FDA approval, you cannot sell new vape products. You will also face obstacles, if you are mixing your own liquids, since each mix is considered new by FDA.
The rules regarding registration with Visa and MasterCard is the biggest change affecting online sales of vapes. You may have to pay a fee of $1000 every year, and register your online vape store website. In a majority of cases, you may also have to get a lawyer’s letter stating that your business is complying with the applicable code and conduct. You need to follow the regulations accordingly, else your account may be frozen or put on hold.
How To Get A Merchant Account
Since the online vape shop is considered a high risk affair for merchant account providers, you may not be able to get approval with a standard merchant account. In the worst case, your account will be kept under review for months, if you are accepting credit cards. It can also freeze without any prior warning. This is the reason why one should opt for a high-risk merchant account for processing vape sales. Even if there are abnormal activities, your provider would know that the account is linked to a high risk category.
The word ‘high risk’ may sound like more expenses, but this is not true. This only implies that there are strict regulations in the industry, and you have to cross the hurdles, when it comes to payment processing. However, all these factors shouldn’t come in your way, when you are looking for options. You need to select a company that is experienced in getting approval for vape accounts. Nation Merchant Solutions offer quality merchant services and top-notch customer service. It can help your business grow without unreasonable fees charged by processors, strict policies or extra stress.
If you are looking for cost-efficient payment processing solutions to sell vape products online, give us a call today and let us assist you in making the right decision. There’s a lot of difference that a reputed card processing company can make in your venture.