Recent studies have revealed that Americans buy more electronic cigarettes (e-cigarettes) than anyone else in the world. According to Euromonitor International, the U.S. accounted for around 43 percent of the $8 billion market in 2015 – more than triple the level of the second-largest market, the U.K.
However, if you assumed that this thriving market was easy to operate in, you would be wrong. Despite being a billion-dollar industry, e-cigarette businesses struggle to find merchant accounts and payment processing solutions. Without a merchant account, these businesses are unable to process debit and credit card transactions. It goes without saying that trying to operate in cash-only is inefficient and completely unsafe. For the entrepreneur that chooses to launch his or her e-cigarette business online to maximize sales, operating without a merchant account is not an option.
For the most part, banks are unwilling to offer e-cig merchants the payment processing services they need. Why? The lack of clarity in the classification of e-cigarettes scares banks and institutions. In their eyes, the risks are simply too high.
High Risk Merchant Account Providers
While the task of securing payment processing has slowed down the process for many entrepreneurs, it has not stopped all startups. E-cig merchants are increasingly turning to high risk providers – like First American Merchant – for their needs. High risk providers specialize in working with industries that are otherwise considered to be “high risk”. This includes: nutraceutical, tech support, gaming, bad credit, restaurants, travel and e-cigarettes (among many others).
The biggest advantage of working with a high-risk provider is that their services are tailored to meet the needs of each industry it works with. If the company you choose is a full-service provider like FAM, you’ll have access to more than just secure payment processing; you’ll also be able to take advantage of business funding options, electronic check processing and chargeback prevention and protection programs.
Unlike working with a bank, the application process is simple, fast and hassle-free. After submitting an application, entrepreneurs hear back in as little as 24 hours, if not sooner. Because approval is not based on financials, time in business or industry (approval is based on business performance), your business can enjoy high approval rates as well.
If your agency is currently struggling with the task of finding payment processing solutions, don’t overlook the convenience and simplicity of securing an electronic cigarette merchant account with a high-risk provider.Get Started Now