Why Electronic Cigarettes are considered High Risk Merchant Accounts?

Why Electronic Cigarettes are considered High Risk Merchant Accounts?

As more and more smokers are trying to stop smoking and stay away from the addictive habit they find themselves looking for alternatives and tools that would help them accomplish the mission. In the last several years electronic cigarettes have hit the market and became very popular among weaning people. The new product was believed to help reduce the dependency on nicotine and therefore help stay away from the unwanted addiction.

In real life only some brands are considered healthy and truly help accomplish that. Other brands might decrease the dependency on cigarettes but increase dependency on electronic cigarettes. The Israeli famous news magazine Ynet has posted that over 84 studies has been made about the industry and some have found that electronic cigarettes may be toxic and include chemicals that may cause harm to the smoker.

Without regulation put in place about the industry, the subject has become controversial among merchant services companies and processing banks. While some banks prohibit this kind of industry, others may put restrictions on some accounts and approve the business to process payments.

It is believed that if clear regulation was to be put in place on the industry it would help merchant services companies and processing banks determine a different and friendlier approach towards the industry. Until that happens, E-Cigs merchants would be in the high risk category.

So What Are The Options?

As an Electronic Cigarette business owner you still have multiple options open for you. Depending on the products you offer (e-cigs, e-vapes, the liquid that comes along), each business is examined individually. While brick and mortar businesses can still find it easier to obtain merchant accounts, online providers struggle to find a bank that would approve their business model. This is where MagicPay comes in pretty handy. MagicPay works with a network of domestic and individual banks. Our underwriters will examine your account and consult with you on whether a domestic solution is available or whether offshore is the best option to explore.

For more information about obtaining a merchant account for your electronic cigarettes business click here.