Electronic Cigarette Merchants Diversity Payment Processes
As demand for e-cigarettes steadily increases, the opportunity for profit is undeniable. Despite this popularity, e-cigarette merchants still have a hard time acquiring funding from traditional lenders. This is because the electronic cigarettes industry is new and considered a risky investment by most lenders. There are a variety of things that make a business high risk, including newness and high instances of chargebacks, fraud or the possibility of a health risk. Thus far, chargeback rates for e-cigs are relatively low but studies on the health effects are inconclusive or still pending. This uncertainty is one variable that makes lenders leery of investing in electronic cigarettes. To keep growing, e-cig merchants must work within a market that supports startups and high risk industries.
In addition, the lack of clarity in terms of regulation is also a reason that merchants have a hard time acquiring funding. As a result, high risk merchants have elected to diversify their payment processing. There are a few ways that these businesses can acquire funding and payment processing. Reliable payment processing is extremely important in developing and growing e-cig businesses. Domestic accounts are the best solution for high risk merchants because of fast settlement times and high card approval rates.
Some domestic acquiring banks are starting to do business with e-cigarette merchant accounts. In addition to creating a domestic account, many e-cig merchants consider adding international merchant accounts to their processing mix. Diversification of payment processing is just a prudent strategy for electronic cigarette merchants. The combination of domestic and international merchant accounts is the best way to protect e-cig businesses from the uncertainty of regulations and financing.
eMerchantBroker is a payment gateway that will give e-cig merchants the diversification they need to help their businesses grow. EMB technology and systems accept multiple payment methods like checks, debit cards, and credit cards. An expert team of domestic advisers are available 24 hours a day, 7 days a week to assist e-cig merchants throughout North America and Canada. Contact eMerchantBroker.com to start a low hassle, stress free e-cig, tobacco, cigar, or cigar pipe merchant account.