Thursday, June 11th, 2020
Vaping is the new smoking, as more and more US citizens take on vaporizers as a replacement for tobacco.
This has led to significant growth in the sector, opening a lucrative market for vape-selling retailers. But as with any merchant, these retailers must provide as many payment alternatives as possible—and credit cards are a must!
To process card payments, you need a merchant account, which holds your money temporarily until you choose to transfer the lump sum to your banking account.
But due to the stringent regulations governing the sector and its high-risk classification, a vape retailer won’t land a merchant account deal as quickly as any low-risk merchant would.
We shouldn’t forget that cities like San Francisco opened 2020 with an active ban on the trade of e-cigs, and Beverly Hills is planning to follow suit by 2021.
Still, consumers and retailers remain positive that the regulations controlling e-juice and e-cigarette sales may change as the FDA looks further investigation into tobacco-based products.
The Critical Role of Vape Store Merchant Account
A merchant account allows a shop owner to take all credit card payments made via a Point-of-Sale, card terminals, and other payment gateways.
The account is linked to an online store so that each transaction initiated via the payment terminals is processed from the acquiring bank to the card network, whether Visa, MasterCard, American Express, etc.
The vape credit card processing process involves confirmations of whether the shopper’s credit points meet the requested amount before the transaction continues. In the end, a receipt is provided to the retailer and shared to the shopper via email.
Securing a Merchant Account for Your Vape Shop
The document requirements for a vape merchant account application process is not very different from that of other accounts. Prepare the following documents upfront to ensure a smooth process.
- A filled application from the processing company
- A copy of your government-issued ID card
- Some sought of proof or business licenses, receipts, etc.
- 3 months of business bank statements
- 3 months of merchant account statements
Furthermore, you will need a perfect financial record or good credit to increase your chances of qualifying.
You also want to ensure your vape store complies with existing laws to increase the chances of acquiring a merchant account with a dependable provider. Make sure it is a perfectly legal FDA-approved business.