What is a Vape Merchant Account?
A vape merchant account is a high risk merchant account that allows vape stores to accept payments from customers via credit or debit cards. Payment processing companies, such AllayPay, act as intermediaries between the vape / e cig merchant and the customer’s bank.
Vape merchants don’t qualify for a low risk merchant account because the sale of vaping products is regulated and age restricted. Therefore, banks and payment processors view the vape / electronic cigarette industry as risky. As such, partnering with a processor that fully understands the high-risk vape industry is essential.
Payment Processing Solutions for the Vape Industry
AllayPay offers multiple payment solutions to process payments.
1. Retail Vape Account: A retail vape merchant account is a merchant account solution that allows merchants to accept in-person credit/debit transactions via a POS System or standalone terminal.
2. eCommerce Vape Account: Stores selling vape pens, e-cigs, vape tanks, and other electronic cigarette products on an online vape store need a dedicated eCommerce merchant account. It’s a merchant account specifically designed for the high-risk vape / e cigarettes industry with online sales.
3. Payment Gateway: AllayPay offers its secure payment gateway / virtual terminal, but unlike other merchant services providers, we have partnered with the best high risk gateways in the marketing, including FluidPay, Authorize.net, NMI, iTransact, and many others to fully support merchants by setting them up with the best solutions available.AllayPay will set you up with the right payment gateway for your vape shop.
4. Mobile Apps: Mobile vape/e-cig merchant accounts can allow your vape business to use an app to take credit card transactions directly on a phone or tablet, which is perfect for trade shows and events to accept credit cards on the fly.
Top 3 Vape Point of Sale Systems
The best point-of-sale (POS) system for e cigarette merchant accounts will depend on the specific needs and preferences of the business.
Below are just some of the more popular POS companies that may be suitable for a vape business:
Clover POS is a point-of-sale system designed to help businesses manage transactions, track inventory, and analyze sales data. It includes features such as customizable product catalogs and customer relationship management tools.
Lightspeed is a cloud-based point-of-sale system to help small businesses manage their sales, inventory, and customer relationships.Over the years, it has become a dominant player for vape and smoke shops because of great features such as real-time reporting, integrations with various payment processors, and a customizable product catalog.
Quantic POS works with multiple processors and platforms. It’s a cloud-based point-of-sale system to help small vape businesses manage their sales and inventory. Quantic POS is comparatively cheaper vs. Clover and Lightspeed, should you not need all the bells and whistles.
Ultimately, the best POS company for your e cigarette credit card processing account will depend on factors such as the size and type of the business, the POS features and tools it needs, and the fees and support offered by the POS company.
All 3 are excellent choices and have options for cash discount, surcharging, and syncing with QuickBooks Online.
Learn more about zero-cost processing.
What Credit Card Terminals Does AllayPay Offer?
We have many options if you need a physical, standalone terminal for credit card processing vs. an entire POS system. Below are just a few terminals that work great for ecigarette merchant services:
- Clover Flex
- PAX A80, PAXA920
- Dejavoo Z8, Dejavoo Z9
- Valor VL100 and Valor VL110
- Ingenico Desk 3500 and Ingenico Move 5000
Terminals range from $200 – $500 depending on features, and AllayPay offers free terminals for most vape businesses.
Contact us today for more information.
Impact of the PACT Act on the Vaping Merchant Accounts
The PACT Act (Preventing All Cigarette Trafficking Act) is a federal law that regulates the sale and distribution of tobacco products, including e-cigarettes. The Pact Act heavily scrutinized the sale of flavored vape juice products and other e-cig vaping products by requiring sellers to verify the age and identity of customers, report sales information to the government, and pay applicable taxes. The Pact Act was a massive factor in why e cig merchant accounts are considered high risk for banks.
Top 3 Reasons Merchant Services for Vape Merchants is Considered High Risk
In addition to the reasons mentioned above, vape and e cig merchants are considered high-risk for payment processing for the following reasons:
- The sale of vape and e cig products is regulated by various state and federal laws, making it difficult for businesses to comply with all the relevant regulations. These laws can increase the risk of legal problems and financial liabilities for cig and vaping businesses, which is the number one reason why vape and e cig merchants need a high risk merchant account.
- Another reason electronic cigarettes and the vape industry, in general, are considered high risk is due to health and safety concerns with vape products.
- The sale of e cigarettes is also federally regulated with legal age restrictions, typically done only by a high risk processor. Payment processors will need to monitor the activity of the credit card processing account more closely than other businesses.
Other High Risk Factors For the Vape Industry
- The e cigarettes industry may be at a higher risk of negative media attention and reputation damage, as the industry is often the subject of public debate and controversy.
- As a legitimate business, it is essential to have the necessary support from your processor. For example, traditional credit card processors may not always be willing to work with e cig merchants.
- Major debit and credit cards should be accepted to ensure that e cig business owners can serve the broadest range of customers.
AllayPay Specializes in High Risk Merchant Accounts
Fortunately, specialized payment processing companies like AllayPay can set you up with a vape processing account, usually on the same day. Such as AllayPay and other services specifically designed for businesses in the vaping industry.
Unlike traditional credit card processors, we get your vape account set up quickly and ensure your vaping merchant account remains intact day after day. These are the significant reasons traditional financial institutions tend not to provide merchant accounts for the vape industry.
Chargeback Concerns for E cigs Merchant Accounts
Vape companies may be at a higher risk of chargebacks and other types of fraud, as scammers and other unscrupulous individuals may target the industry. These customer disputes increase the costs and risks of processing card payments for vape companies.
Why Dedicated Vape / E Cig Merchant Accounts Are So Important?
A vape / e cig merchant account is essential for several reasons.
- First, a payment processing account can help a vape shop increase revenues by 25-40% over accepting just cash.
- Second, the vape shop can show that it is a legitimate and trustworthy business by offering customers the option to pay with cards.
- Third, e cigarette merchant accounts help establish credibility and professionalism amongst customers.
What is the Difference Between Low and High Risk Merchant Accounts?
There are many merchant account providers, but not all specialize in e-cigarette merchant services. For the reasons mentioned above, the vape and electronic cigarette industry requires a processor that fully understands your needs.
Low risk processors will not have the knowledge and experience to properly guide vape merchants. Instead, sales reps often attempt to signup companies with inadequate equipment, systems, and guidance.
Due to the high-risk nature of this business and the numerous rules and regulations that govern the products and services related to vapes, e-cigarettes, and hookahs containing nicotine, this business falls into a high-risk category.
What is My Rate for a Vaping Merchant Account?
AllayPay guarantees to beat your current rate for your electronic cigarette merchant account. Other credit card processors charge a high flat, but AllayPay focuses on saving merchants the most money possible. Our rates start at 2.00%, typically 25-40% less expensive than the top competitors in the industry.
What Is a Paraphernalia Merchant Account?
A paraphernalia merchant account is a type of payment processing account specifically designed for businesses that sell smoking pipes, vaporizers, and other items associated with the use of tobacco or marijuana, and other items typically found in vape related businesses.
Can I Sell Paraphernalia with My Vape Merchant Account?
Given that these two are very interconnected, you’ll inform us if your business plans to sell paraphernalia during your application process.
To set up a paraphernalia account, a business owner will typically need to work with a merchant services provider or a payment processor willing to work with businesses in this industry.
A vape merchant account specifically created for these products is necessary to ensure your payment processing account never gets shut down.
Can I Sell CBD with My Vape Merchant Account?
If you plan on selling CBD, Delta 8, Delta 9, and other related CBD products, getting a dedicated CBD merchant account is best. The reason is that although most vape shops sell CBD, the acquiring banks require separate underwriting policies.
Furthermore, lab reports and health claims will need to be verified. Otherwise, vape merchants will risk getting their accounts shut down should the bank find out.
AllayPay has been the top CBD processing solution for almost a decade.
Contact us today to get started.
Did Your Credit Card Processor Shut Down Your Ecig Merchant Account?
Besides e cigarettes, many vape stores also sell CBD, delta 8, delta 9, kratom, paraphernalia, and other products considered higher risk for banks. If your credit card processor shut down your vape/e-cigarette online business account, AllayPay can get you up and running in 1-2 days.
Do I have to Pay a $500 Registration Fee to Sell Vape / E cigs Online?
Vape related businesses that sell nicotine and wish to take online payments must register with the card brands. The cost of registration is handled by the processor and is required regardless of which processing solution is chosen.
The cost for card brand registration is $500, which is charged by each Visa for their High Brand Risk Program and Mastercard for their BRAM Compliance, but registration is required for American Express as well. There is a renewal fee required each year.
How To Apply for a High Risk Ecigarette Merchant Account?
AllayPay allows merchants to fill out our easy online application. For the fastest approval to accept credit cards, all credit card processors will require the following information:
- Voided check
- Social Security Number
- A valid government I.D.
- Bank and Processing Statements (if available)
Choose the Best Vape High Risk Processor
Finding a reliable high risk payment processing account that fits your business’s needs is significant. You will need to choose a payment processor specializing in high risk industries. You’ll want the best credit card processing solutions when selling electronic cigarettes and other vape products.
Contact Us Today
AllayPay has helpedthousands of e cigarette businesses and other high risk merchants with credit card processing merchant solutions. So let us help you set up your ecigarette merchant account today!
Contact us today to get started.
