Do you own a business that sells tobacco online, or are you about to start one? Then maybe you have already found that getting approved for a merchant account and for processing credit card payments is both hard and expensive. Read on to find out how you can solve this problem quickly so that you can set up an online tobacco merchant account and start selling to customers ASAP.
Why Tobacco Is High-Risk Industry For Merchant Account?
- The tobacco industry has been fighting controversy since the 1950s, so it’s safe to say that it’s not going anywhere anytime soon.
- Nonetheless, the last 10-20 years have seen a number of laws and regulations passed all around the world that negatively affects sales of tobacco, and the political climate is slowly shifting to possibly do more of the same right here in the US.
- The possibility of such laws coming into effect and drastically changing the market means that banks and other financial institutions consider tobacco production and sales to be high-risk.
- In addition, on average, online tobacco sales cause more credit card chargebacks than online sales in general.
- Chargebacks are another cause for concern for banks and more mainstream multi currency payment gateway providers like Stripe or PayPal.
- Together all of this means that very few merchant service providers accept online tobacco stores as customers, making it very difficult to get an online tobacco merchant account and find a way to process online credit card payments.
You Need High-Risk Merchant Account For Online Tobacco Industry
- Rather than trying your luck with a bank, and at best getting approved only if you pay impossibly large processing fees, you need to get a high-risk merchant account.
- A high-risk merchant account comes with the expectation of higher risk built-in, so things like chargebacks don’t affect your ability to keep making online sales.
- A regular merchant account, even if approved for an online tobacco store, is likely to get shut down quickly, shutting off the oxygen that your business needs to stay alive.
- Worse yet, some providers can freeze your funds indefinitely, making it even harder for the business to survive. A high-risk merchant account will help you avoid such issues.
5 Star Processing Can Setup Your Online Merchant Account
- Our company was started to help high-risk businesses like yours to get approval for online high-risk merchant accounts.
- We have customers all over the United States, many of them running online tobacco stores and even CBD stores (an, even more, high-risk industry).
- This means that we already understand your business and the unique issues that you face, and can help you set up the perfect online tobacco merchant account and payment gateway for your specific needs.
- We have staff to handle incoming applications as quickly as possible, meaning that you can get fast approval for your account.
- Because of our unique business model, we can also offer you the lowest fees and the best rates for approval and processing than anyone else in the industry.