Don’t get smoked by your Credit Card Processor: The truth about Vape and eLiquid Merchant Accounts
- Posted on: Feb 15 2018
Although it seems a bit unfair, the vape and e-liquid space online has traditionally been considered high-risk, but that doesn’t mean you should be restricted to high rates and poor service. You deserve solutions that can fit your needs and deliver the best outcomes. In a growing industry, there is plenty of opportunity to learn what you need to know with Pinpoint.
eCig industry shows remarkable growth
Both the Electronic cigarette and Vaporizer industries are growing in popularity. BIS Research estimates the global electronic cigarette industry will grow at over 22.36% to reach a total market value of $50 billion by 2025. According to the Center for Disease Control, there are about nine million vapors in the U.S alone and as of 2013, there were over 3,500 vape shops here in the States. Being able to market accordingly to these consumers plays a large part in your success.
Vape merchant accounts, a match made in heaven
Many traditional banks, which deliver low risk merchant account options, unfortunately do not support the growing vertical. The same goes for many of the popular Payment Service Providers like Stripe, Square and PayPal who have deemed the industry type “Prohibited” or “Restricted”.
Your industry, unfortunately, dictates your overall ability to get a merchant account. Many of the larger banks and processors do not want their brand associated with the eCig industry, for fear of negative press and a variety of other reasons. We find that most are just uneducated or simply misunderstand the vertical altogether. Because of this, Pinpoint has worked diligently to develop reliable, long term banking solutions that truly understand the space and are willing to underwrite accounts for eCig, Vape and eLiquids.
Working with Pinpoint makes it easy to place your business. Depending on your specific business, there may be additional financial restrictions. Be sure to ask all relevant questions and understand any constraints. In many cases, things like rolling reserves, or a monthly credit card processing volume cap can be renegotiated after a history of three to six months of successful and stable card processing is established.
That’s why you need to partner with a processing company that works with a variety of high risk clients, delivering compliant, easy, and manageable solutions to help you build your business. After all, you won’t get far if you don’t allow for credit card payments.
Why eCig businesses partner with Pinpoint
As a leader in high risk merchant accounts, Pinpoint understands the unique requirements for sales and underwriting required for the industry. As a member of the Smoke Free Alternatives Trade Association, we take a vested interest in finding the very best solutions for your vape related ecommerce, traditional retail locations, and wholesale brands.
So what sets apart? While many eCig customers rave about our one-on-one support, or the fact that we were former merchants ourselves, while others take comfort in the fact that we attend many of the largest trade shows that are dedicated to the space. Vapor Fair, Tobacco Plus and the Vaporize Expo are just a few we were recently at, where we sat down and were able to catch up with many of our new and existing clients.
But processing payment online, is just the tip of the iceberg for Pinpoint. Our expertise is maintaining the health of these accounts that our team works so hard to get approved. From fraud prevention to chargeback management, our tools and solutions are unrivaled.
The payment ecosystem is complex but critical to any organization’s success. Reduce your overall risk of processing payments online, and boost your bottom line today.
Posted in: Risk Prevention