Posted by tina on Oct 15, 2015


eciigarette merchant accounts

eCigrette Merchants are Considered High Risk by Banks

E-cigarettes and vaporizers, collectively known as electronic nicotine delivery devices, have become widely available, both online and offline.  However, the dispute between ecig supporters and their critics is ongoing and far from settled. Opinions on their health effects or value as replacement for regular smoking vary considerably not only amid the general public, but also among legislators and health experts.

After the negative report issued by the FDA on the worrying number of adolescents that use e-cigarettes, supporters must have felt at least partially vindicated by a widely-circulated, much more benevolent study of British origin. The study concluded that the use of these devices is 95% less harmful than smoking. The rapid dispersion of this report by numerous media outlets and websites around the world illustrates how strongly people want healthier alternatives to smoking.

If the tide seems to be turning overseas, this is not the case in the United States where the push for more regulation continues. Understandably, this is not good news for the businesses that sell ecigarettes to an ever-expanding customer base. To make the situation more challenging, the regulation that does exists has been applied unevenly across the United States, which means that some states are way ahead, while others have not treated the issue as a priority.

These regulatory uncertainties and inconsistencies are most problematic for online merchants. The default position of many payment service providers is risk-aversion.

Despite the fact that there is a great deal of anecdotal evidence that supports the benefits of replacing tobacco with e-cigarettes, the under-regulation, either real or perceived, of these devices is enough to categorize the businesses selling them as high risk. More regulation will not necessarily lead to the label being removed, as it expected to see adolescents turn to online stores if they cannot get the product at a brick-and-mortar shop.

Payment Processing for Ecigarette Merchants

Under these circumstances, finding a merchant account company that is willing to provide services for e-cigarette vendors can be challenging.   Finding accounts at favorable rates with low or no reserves is critical to the success & profits of your business.   

You have many good solutions for ecigarette merchant accounts.  High volume merchants and fast growing companies often find it prudent to establish multiple accounts to avoid depending on a single processor.  

Multiple merchant accounts are available allowing you to load balance between processors to mitigate risk.  While providing you the processing power you need to grow your business.


The global vaping market, will top $7 billion this year. Get your share of the market. Optimize your profits with ecig merchant accounts which make it easy and convenient for customers to buy from you.  

Are you looking for reliable, secure payment processing for your online ecigarette sites?

Contact today