Modern technology has changed the world in a lot of different ways, affecting many different aspects of how people work, live, and interact with one another. It’s even changed the world of smoking. In the past, smoking was all about cigars and cigarettes, but in the modern world, there’s another option out there: vaping with e-cigarettes and vape devices.
Vaping has taken the world by storm since the turn of the millennium, with vape devices becoming increasingly prevalent and the vape industry growing in size and value exponentially in recent years, becoming one of the fastest-growing industries on the planet. And it’s not hard to see why, as vape devices like e-cigs and mods have many advantages.
Before we look at the ins and outs of how vape merchant accounts work and how to obtain your own e-cigarette merchant account, let’s look at an introduction to the vape industry itself. This is a $6 billion industry, according to latest estimates, with a lot of room to grow and very optimistic expectations for the years ahead.
Research is still ongoing to find out more about how e-cigarettes work and what effects vaping may have on the human body, but preliminary results suggest that vaping can be less harmful than smoking, due to the fact that vape devices don’t produce any smoke or involve any combustion, resulting in fewer harmful materials entering the lungs.
This means that a lot of former smokers have been tempted to make the switch to e-cigarettes and vape devices, with many saying that e-cigs have helped them quit regular cigarettes. These devices have also created their own subculture in the smoking world, with many enthusiasts eager to try different vape devices, rigs, accessories, and liquids, too.
Thanks to this, there’s a lot of money to be made in the e-cigarette world and many different opportunities for entrepreneurs to start their own businesses. You could create an online vape shop, for example, selling e-cigarettes and accessories, or you could make a business creating your own vaping mods and items. But in order to do this effectively, you’ll need a vape merchant account.
So what exactly is a vape merchant account and how does it all work? Well, let’s begin with a simple merchant account definition. Merchant accounts are special types of business accounts that are designed to be used by businesses that do a lot of their operations online and have to handle many card-not-present transactions, i.e. transactions in which the card and card holder are not physically present at the sale location, like online purchases.
The vape merchant account is what makes it possible for the business to process and receive these kinds of payments. In other words, you have to have a vape merchant account if you want your customers to be able to pay you online. With a vape merchant account set up, you can have your own e-shop and payment system, with customers using your website to pay you safely and simply with their credit or debit cards.
The money goes from the customer’s account into the vape merchant account for processing, before continuing on to your main business account, where you can use it freely for anything from paying salaries to buying more inventory, and so on. Essentially, the e-cigarette merchant account is the “middleman” of the process, and with so many e-cig sales happening online these days, having a vape merchant account is absolutely vital in this industry.
Unfortunately, even though it’s clear to see that vape merchant accounts are vital for those in the vaping industry, it can be quite tricky to actually get one of these accounts in the first place. If you head to your usual bank or payment processors and try to do business with them, they might reject your application as soon as they learn that you’re in the vape industry.
This is because the vape industry is classed as “high risk” and associated with the kind of high risk credit card processing that many banks simply do not want to deal with. And there are a few reasons for this. The first is that vaping is still a new and relatively controversial industry, and some banks object to working with controversial industries on moral grounds, worried about their own reputations.
In addition, because the vape world is essentially still so young, with so much research still to be done and so many things to be found out about how e-cigarettes work, it’s a bit of a risky space in which to do business in general. Rules and regulations for vape goods are subject to change all the time, and this means that banks have to do more work to make sure their clients are following all the rules.
Plus, vape and e-cigarette businesses often have high rates of chargebacks, which is when customers dispute payments and ask for their money back from the bank. This can happen due to the fact that they aren’t satisfied with the products provided, due to a lack of quality control and regulation, or for other reasons, like if a minor uses a parent’s card to order vape goods and gets found out. All of these kinds of situations cause problems and fees for the banks involved.
So what can you do if you want to set up your own e-cigarette business but can’t find a bank that is willing to work with you or a payment processor that is ready to accept the risks of the industry? Well, Shark Processing can help with that, putting you in contact with one of our many partner banks and payment processors who are willing and able to offer high risk vape merchant accounts.
At Shark Processing, we’re experts in high risk payment processing and we work tirelessly to help high risk businesses get the accounts and merchant services they need. We can help you obtain a high risk vape merchant account as soon as possible, with the best rates guaranteed. Get in touch with the team to learn more about what we can do for you.