Smoking Accessories Merchant Account
In 2015, the global tobacco market, including the industry as a whole, was valued at more than $6 billion. This monumental sum factors in the amazing growth the industry has continued to see throughout the years. With such a lucrative market, it comes as no surprise that so many individuals are looking to provide smoking accessories to customers in need.
If you have a business that offers smoking accessories such as bongs, pipes, and other paraphernalia, it is essential to accept debit and credit cards. Accepting debit and credit cards as a form of payment helps to avoid missing out on potential sales opportunities for those who do not have cash available. This is why it becomes vital to secure a smoking accessories merchant account in order to join the eCommerce era.
When you are the owner of a smoking accessories business, finding merchant services for smoking supplies is essential before you begin generating sales. Obtaining credit card processing through a standard processor can lead to unexpected freezing or termination of your account due to the high-risk nature of selling smoking accessories.
Why Selling Smoking Accessories is Considered High-Risk
Unfortunately, the smoking accessory industry is still considered high-risk in many states due to the varied legislature in place. Although the sale of smoking accessories in itself is not illegal, some states or jurisdictions consider these businesses high-risk. The businesses may be considered high-risk due to their association with substances that might not necessarily be legalized on the federal level.
Utilizing a smoking paraphernalia credit card processing service is one way to ensure you are fulfilling orders to completion. With a merchant account designed for payment processing for smoking paraphernalia, you have the ability to continue running your business as usual.
The Importance of Smoking Paraphernalia Credit Card Processing
Applying for a standard merchant account using Paypal, Stripe, or Braintree may result in acceptance or denial for your smoking accessory shop. However, this can result in extreme risks. Even if you are accepted for a merchant account, your account may be at risk for the following:
- Flagging: If you are selling smoking accessories such as bongs or pipes, your account may be flagged. Selling paraphernalia can be considered illegal or frowned upon in different states, depending on the local legislation.
- Frozen Account: If your account is flagged for any reason, it may also be frozen. Frozen accounts may require a manual review from your current payment processor. When your merchant account is frozen, you are not able to accept or process payments. In addition, many times your funds will also be held by the processor pending their investigation into your account.
- Account Termination: A standard payment processor such as Paypal has the ability to terminate your account at any time. Even if they initially approved your merchant account, they may find your inventory or content to qualify as high-risk. If your account is terminated, you will immediately lose access to your ability to process sales and payments.
Why Use a Payment Gateway for Smoking Accessories?
As a business owner, you understand the importance of being able to accept any form of payment. Using a payment gateway designed for high-risk industries such as smoking accessories provides a number of advantages, such as:
- Reduced Risk: Smoking accessory payment processors approve the inventory you stock, allowing you to process payments without issue. You can dramatically reduce the risk of having your account frozen, locked, flagged, or terminated with the correct processor behind you.
- Chargeback Support: Smoking supply payment processors understand the risk of more chargebacks. They accept business deemed as high-risk, regardless of higher chargeback rates--which are typically higher than 3%.
- Increased Sales: By offering additional payment methods to your customers, you can drastically increase your sales. Your business can go from a cash-only establishment to one that accepts all major credit card types.
What is Required When Applying for a Smoking Accessories Merchant Account
Before you submit an application for a smoking accessories merchant account, it is important to remember that there are requirements involved in the process. While you are in the process of seeking approval from your chosen smoking supplies payment processor, you may be asked to provide the following information:
- Bank Account Details: Your personal and business bank details are required to receive approval for a high-risk merchant account. Your account and routing numbers will be requested. Additionally, you may also be asked to provide at least 3 months of bank statements to give the potential processor a snapshot of your finances.
- Personal Information: You will be required to provide your name, mailing address, phone number, and social security number while completing your application. You will also be required to provide an official driver's license or a government-issued ID.
- Business Model: Sharing your business model or revenue plan may also be requested if you have not yet established your business. If you have proof of sales and revenue, showing this can expedite the approval process.
- Online Presence: In some instances, providing your website's official URL as well as your online presence on social networking sites that your business is associated with might be required. Showing your company's online presence is a way to provide proof of its existence and viability.
Obtaining a merchant account that welcomes smoke accessory companies is a way to continue conducting business without issue. By finding the right smoking supplies payment processor, your customers are given better access to interact with your products as well as grant you the peace of mind that your business won’t be shut down.
Partnering with a Credit Card Processor you can Trust
Most of the time merchants reach out to us because their business has been shut down by their previous, tier-one processor. While this can occur at any time, it most commonly happens after months of processing and without proper warning. Fortunately, PaymentCloud is situated to accept businesses belonging to a range of industry types that otherwise would be rejected by traditional processors. Specializing in high-risk, such as smoking accessories merchant accounts, we have what you need to get your business up and running.
With our large staff of dedicated account representatives, we are available everyday to help answer questions and provide valuable support to our merchants. Any questions before, during, or after the acceptance process go directly to the representative who understands the wants and needs of your business. Our merchants’ satisfaction is a big driver in all that we do at PaymentCloud.