Who needs an ecig and vape merchant account?
Any merchant in the ecig and vape industry, including those running physical smoke shops as well as online vape sites, can benefit from securing an ecig and vape merchant account. That’s because with the right merchant account in place, you’ll be able to make smarter, data-driven decisions about your business through access to easy-to-understand analytics that can help you streamline your entire operations.
Why are ecig and vape merchant accounts considered hard to place?
Acquiring banks consider merchants operating in the vape industry to be hard to place or specialty businesses for several reasons. These include the following.
The number of federal, state, and local regulations that have to be met. The presence of age restrictions. The increased risk of fraud and chargebacks associated with ecig and vape merchant accounts. The potential for future liability for health problems related to vaping. Have a large number of online transactions? That alone would place you in the specialty merchant category. That’s because when the customer’s card isn’t present, as with ecommerce, the risk for fraud and chargebacks is Credit card processing for ecig and vape merchants of every flavor.
Getting approved for an ecig and vape merchant account from an experienced, reliable, and knowledgeable specialty credit card processor can benefit your business in several ways. For starters, you’ll be able to:
Accept payments in person. 
Accept mobile payments on the go. 
Accept ecommerce payments through a secure shopping cart and your (or a third party’s) website. Of course, securing an ecig and vape merchant account with the right partner is about more than just finding reliable and affordable credit card processing. It’s also about getting access to the analytics-based data you need to simplify your customer, employee, inventory, and chargeback management. That way, you can make smarter decisions that will grow your business.
Chargebacks in the vaping/ecig industry and how to reduce them.
One of the biggest problems related to ecig and vape merchant payment processing is the industry’s high frequency of chargebacks. This is when a customer disputes a transaction through their issuing bank after a credit card transaction has taken place. Customers can issue a chargeback for several reasons, including the following.
They aren’t happy with the product they purchased from you. 
They don’t recognize your business name on their statement. 
They are attempting to commit fraud. Regardless of why your customers dispute a sale, chargebacks can prove costly for your business. Added to that, if your chargeback ratio gets too high, your payments partner may even close your merchant account.
To help reduce chargebacks, start with having a clear return policy and declining transactions from suspicious IP addresses. Having said that, the single most important thing you can do to reduce chargebacks associated with your ecig and vape merchant account is choose a credit card processing partner who can offer you access to the latest in chargeback reduction and anti-fraud tools. Only then will you enjoy peace of mind knowing that you have a partner helping protect your bottom line.
Why choose HBMS as your payment processor?
At Humboldt Merchant Services, we specialize in the hard to place. When you choose us for your ecig and vape merchant account, you’re not just getting access to the latest POS systems and technology to accept payments, you’re joining forces with a proven credit card processor. We understand the unique challenges merchants in the vape industry are facing and we’re ready to serve as a trusted ally that can help you streamline your back-office tasks and grow your vaping business.
Partner with the ecig and vape merchant account experts.
Click above to enter your information and a payments expert will contact you, or call 877.840.1952.
Related reading: Legal considerations for the ecig and vape industry.
