What is Vape Credit Card Processing?
Industry experts valued the vaping industry at around $14 billion in 2018. It is expected to grow to over $29…
Industry experts valued the vaping industry at around $14 billion in 2018. It is expected to grow to over $29 billion by 2022. It is unquestionably a boom period for successful vaping companies.
However, they face a significant problem. Finding vapes credit card processing is often a nightmare. Although vaping remains legal in many countries, finding the right merchant account is a challenge. We discuss the reasons, and check out the best credit card processing companies in this article.
Credit Card Processing for Vapes in an Online Store
When you operate a business online, you rely on customers paying you via credit or debit cards. However, many ‘traditional’ financial institutions refuse to do business with vaping companies. As a result, they need to find vapes credit card processing alternatives.
This was a huge problem just a few years ago. Fortunately, in recent times, a growing number of companies have entered the fray. Trusted brands like CannaPay now offer the banking services that companies need to proceed in their industry.
Vapes Credit Card Processing 2020 – What’s the Issue?
Such are the issues companies face that they try the likes of Reddit to find information on vapes credit card processing! You don’t have to do that because there is plenty of reliable info available online.
The main problem is that the banking industry considered vape shops as ‘high-risk’ businesses. This is the case whether you receive payments via card online or in person. Factors such as age limits and FDA regulations mean that traditional credit card processors want nothing to do with vaping.
There is also the chance that a vape shop sells cannabis products. This is a massive problem for banking facilities. At present, marijuana remains a controlled substance in the United States. It is federally illegal. Banks and credit card companies that work with such businesses could theoretically get into legal difficulties.
The vaping industry received a damaging blow not so long ago. In April 2019, the first case of a vaping lung illness outbreak was reported. It was the beginning of an epidemic that claimed at least 60 lives and hospitalized over 2,700 people. Investigation revealed that most people who were ill had purchased black market products. Vitamin E acetate was one of the likely culprits as this ingredient was linked with many of the cases.
In January 2020, the United States announced a nationwide ban on most e-cigarette flavors. Only tobacco and menthol flavors are permitted in vaping devices. Of course, vaping is also linked with cannabis, another banned substance. These links, plus the associated FDA regulations, mean that vaping businesses are now high-risk.
It isn’t just vape shops that suffer from the restrictions. Companies that manufacture and distribute vaping products are also on the list. Identification as a high-risk business means you can’t access a lot of credit card processors. It also means that businesses who work with you will charge higher fees.
Small business owners, in particular, bear the brunt of these restrictions. They may need to have large cash reserves to maintain a partnership with a processor. This makes the business a target for burglaries and also limits cash flow. Occasionally, there are limits on the monthly number of transactions.
Thankfully, you no longer have to accept this problematic scenario.
Credit Card Processing Companies for Vapes Companies
In general, you would expect these features from a typical credit card processor:
- Functionality that works with how you do business.
- A range of services that cater to your needs.
- Relatively low fees and a high degree of transparency.
- Clear statements which outline how much you pay, and to whom.
- Training for you and your staff to figure out how to use the services.
However, vapes credit card processing online for vapes companies also requires the following:
- A reliable system capable of verifying the ages of customers. This helps meet federal, state, and local requirements concerning age verification.
- Fraud and chargeback protection tools. Chargeback schemes run rampant in the vaping industry, so watch out!
Also, don’t lie to your processing partner. Honesty is the best policy! Be open about your industry and your high-risk status. If they catch you in a lie, they will immediately drop you as a client.
Vapes Face-to-Face Credit Card Processing Alternatives
Whether you sell vapes, pills, or edibles, credit card processing is tricky in a high-risk industry. You can try to set up a physical store and accept payments in person. Whether this helps improve your chances of finding a processor is open for debate.
We can tell you that storing large amounts of cash on the premises is a bad idea. Research indicates that robbers now specifically target high-risk industries such as vaping stores and cannabis dispensaries. They know that such businesses carry an enormous amount of cash.
Indeed, they understand that they get more money from robbing a dispensary than on a bank job. There is also a LOT less security!
Therefore, the government needs to sort out the vape vendors and credit card processing mess. Until then, companies in the industry must rely on services like CannaPay. It specializes in medical cannabis payment solutions but will also do business with vaping companies. Remember, many such enterprises sell marijuana products!
CannaPay has been in the industry for over five years to date. Already, it has thousands of delighted customers and a growing staff roster. It has quickly become one of the fastest-growing and most trusted processor in the industry. In essence, CannaPay allows you to function like a ‘normal’ business.
The question: “Why Are Vapes Suppliers Having Credit Card Processing Problems?” is easy to answer. What’s more difficult is finding a solution. Hopefully, the federal government will remove the roadblocks and stop preventing honest companies from operating.