Hassle free convenient merchant accounts for tobacco and e-cigarette business

Selling tobacco products and e-cigarettes are governed by rules and regulations which vary from one state to another and one country to another. So any business owner who launches a business in this segment like the stores selling cigarettes, cbd, delta-8 cbd, kratom, ejuice, nicotine, smoke shops, e-cigarette vendors or even the online merchants who sell any of these products should know that these are considered to be high-risk businesses. A credit card is a popular way of making payments these days. Merchant accounts for credit card payments could be of several types. Not all of them are flexible. And some of them might even come with high Fees, Rates, and other complications. To address this concern and to make it easy for the owners of tobacco based businesses and other such high-risk businesses there are now hassle-free merchant accounts.

These are the accounts that have the support of multiple underwriting banks and even many offshore options. So there would never be a shortage of funds. And even in those cases where there are unplanned transactions of a large size the high-risk merchant account would be able to handle that.

Online merchants have several limitations to overcome

Banks and popular credit card processors sometimes look at online merchants as big risks. Online transactions are very convenient for the customers as it helps them save a lot of time. This is the reason behind the rise in popularity of e-commerce businesses. Customers can simply log in to the business’ official website and place an order and the business, on the other hand, would also have very little to handle. The operational costs involved in running a physical store would be reduced for the online merchants. But these are situations where a card would physically not be present for the payment. This increases the chances of fraudulent transactions and thus increases the risks of chargebacks. Opening a merchant account for online merchants might thus be a tougher task to handle which might not be accepted by banks and other credit card processors. So for the e-commerce stores selling tobacco products a high-risk merchant account would be the best choice to depend on.

Rejections from banks

When it comes to getting the account request approved there are numerous background processes that occur. Given the stringent rules and the fact that there are numerous vendors who sometimes break some or several of these rules, there is a bad reputation in general about handling the accounts for the businesses in this category. Underwriting banks would consider the adherence to the rules. There are cases where some credit card processors accept the request and help open a merchant account and later the vendor sells products that are illegal. This might put not just the business at risk but also the merchant account provider. So in such cases, the merchant provider might block the business’ account. These are situations that occur often in this industry leading to the banks rejecting the applications. Even those institutions that have provided a merchant account might suddenly withdraw their services or impose huge rates if any other such business in the area has recently been part of scams leading to losses. In all such cases, the business would then have to tediously proceed with unblocking the account and then hunt for a different credit card processor. All this can be avoided if the business opens a specialized high-risk merchant account that easily handles smoke shops selling cbd, delta-8 cbd, kratom products, delta eight cbd, head shops selling delta 8, etc.

New businesses would also be treated the same

Rejection rates are very high for startups. After the long and complex application process, the business might be rejected by the underwriting banks and eventually, the application might be closed without any further assistance from the credit card processor. But in the case of high-risk merchants, there are multiple underwriting banks. So even if one rejects there would be another to handle it. This is one of the strategies that the high-risk merchant providers follow so as to develop a robust account. With the experience in handling all types of businesses and those that are known to have a bad credit, these high-risk merchants accept startups as well.

There would be no application fees involved and the application is also approved real quick. Without the hassle of paying extra for the setup fees and for the gateway setup and virtual terminals, the business would be able to read all of the benefits with a single merchant account. At any point, if the business needs assistance there is also a responsive customer care team to handle all the queries.

Though high-risk merchant accounts are not very popular these cater to the needs of high-risk scenarios and situations where sudden refunds or recalling of the transactions occur. So the online merchants, as well as brick and mortar smoke shops, would benefit from high-risk merchant account.

Offshore and domestic accounts can handle appropriate situations

For those regions where selling tobacco products involve a lot of rules and regulations opening a domestic merchant account might be even more difficult. So offshore accounts would be better because the account would be opened in a region where the legislations favor the business. So no matter where the business operates without having to shift the business the merchant account alone can be shifted to a convenient location. This is why merchant providers who handle offshore clients have sought after.

With domestic accounts the usual benefits are applicable. The rates are lower for domestic accounts than for offshore accounts. Along with the lower rates comes the benefit of security. But with an experienced high-risk merchant provider, you would get the same security promise even for an offshore account. Along with all these flexible options, you would also get iPhone/Droid Mobile Apps to track the payments and other features like ACH Processing/Check Processing and more. So in future, if the business plans to expand or globalize the merchant provider would still be able to serve the business and provide a suitable account that would grow with the business.