tobacco merchant accounts

Tobacco Merchant Account Finding Global Acceptance With Payment Processors

Tobacco is the most premium product for smokers and regular users and it has become a gigantic industry with no slow down in any of the coming years. The various forms of tobacco whether used for chewing, smoking, and many other forms are also becoming a part of the e-commerce business. The Government and Banking regulations are still part of this industry but lobbying by the bigger tobacco merchant account adds to the industry with higher credit ratings. The retail tobacco shops are found with the payment processing and with high-risk gateways the business works well with the payment processor.


The tobacco merchant account is considered a high-risk industry for many of its specifications. Here are a few of them:

Health Concerns: Tobacco whether in the form of cigarettes and cigars that contributes to a number of diseases that include lung cancer and high blood pressure.

State laws: Each U.S state has different laws that regard tobacco sales or distribution and transport. The states have some prohibitions or restrictions that advise tobacco merchants that consults the Alcohol and Tobacco Trade Bureau which comes under the U.S. Department of Treasury.

The tobacco merchant accounts work with easy transactions by high-risk gateways and it adds to the sales and better earnings for the tobacco business that leads to the tremendous growth of the merchants who gets into this business.

Some of the most common products which are found with the tobacco merchant accounts are:

Cigarettes: The most common types of tobacco used with cigarettes and with many takers it gives the highest number of sales.

Cigars: The roll your own or hand made cigars or the better company made- cigars are part of good sale.

Hookah: The hookah sales are fund with the choices of flavors and the popularity of hookah lounges has added fun to the industry.

Here are some of the necessary requirements to set up a tobacco merchant account: 

    Government ID proof such as driving license or passport  
    3 months of business bank statements                            
    4-6 months of payment processing statements with the company name that are found with total sales or chargebacks along with refunds and returns

The fees which come with the tobacco merchant accounts are as follows:

    Merchant discount rate
    Per transaction fees
    Monthly statement fees
    Monthly gateway fees
    Chargeback fees
    Refund fees
    Six-month rolling reserve

The tobacco merchant accounts are found with the eCommerce business and with the connection between the shopping cart mechanism and the high- risk gateways work with the industry that supports the credit, debit, or the ACH payments.  

But apart from the few disadvantages of tobacco merchant accounts, there are some benefits which lead to better amount procurement for this industry:

    Easily acceptance of payments with the online store
    Larger sales with customers adding more funds
    Easy settlement of funds with the merchant bank accounts
    Provide complete reporting of sales and transactions
    Offer extensive fraud control and monitoring services

The tobacco merchant accounts by High-Risk gateways are found with these many solutions:

    Multi-currency acceptance with the different currencies along with minimizing foreign transaction fees
    No volume caps or monthly processing volume
    Global sales that allow business with the processing of transactions from countries throughout the world
    Fraud prevention with chargeback reduction

Tobacco merchandise is a billion-dollar industry and with high-risk gateways as payment processors, the business will reach a new high. The industry may be finding the new high but at times if the right type of payment processor is not found with it may see a certain backlash. The examples of the credit card industry may create issues with the industry and it is good to have a better payment processor to support the longevity of a business.

After understanding the tobacco merchant accounts the little understanding of high-risk merchant and its attributes could be found here:

    No application fees
    Competitive rates as compared to other business providers
    No Visa or MasterCard registration required
    Multiple Secure payment gateway options

The tobacco merchant account works with the government regulation as well as found with tremendous reach and the business finding new products such as hookah or others such as e-liquid cigarettes the tremendous opportunities are found with the smoke industry.  

The tobacco merchant account has also become an online business and the products finding e-commerce business with the eligible merchants who work with the customized payment processing solution the business also gets many of the sponsor banks which are guided by exemplary credit history. The online business is found although with certain chargebacks and with the high-risk gateways finding eCommerce tobacco business to flourish the merchant always adds much into his business with the help of financial institutions which makes it commercially successful.

Tags: International Payment Gateway, MLM Merchant Account, CBD Oil Merchant Account, Payment Gateway



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