Why Your Tobacco Business Needs a Tobacco Merchant Account

Despite numerous attempts to curb the use and sale of tobacco products, the industry has only recently reaped enormous benefits. With its awfully diverse product portfolio, tobacco has become one of the most profitable industries in the market. Reports show that the industry generated the US $ 11.9 billion in global revenue in 2017 and is expected to grow to the US $ 13.4 billion by 2021. The new development shows that the purchase of the cannabis industry by the big tobacco companies and the expansion of their shares will help it to develop further.

A requirement has revealed no signs of moving out of business anytime soon.

Even Though the business could be plagued with various limitations and strict legislation, selling tobacco and related products aren't illegal and are still very much legal.

A Tobacco Merchant Account and Non-3D Payment Gateway has always been a great solution to the merchants to manage their processing and accept online payments. It was the answer to all the questions related to the merchant payment processing needs.

Need of a Merchant Account for Tobacco Industry

The ultra-competitive nature of the sector means companies must measure up to live in the long run. Following customer, trends could be a solution, with credit card payments and other online payment methods becoming a fast-growing client requirement.

Retail shops, smoke pubs, kiosks, or internet stores, irrespective of the form of tobacco company you run, you'll require tobacco merchant accounts options to provide credit card processing and other payment choices. They don't just provide an alternative to customers but also allow you to operate a smooth and cost-efficient business.

But getting merchant accounts solution for a tobacco merchant isn't that easy. The industry's uncertainty has resulted in financial and banking institutions' reluctance to participate and provide solutions to tobacco retailers.

Why Your Application Got Rejected?

If a merchant walks into a bank to get approval for a merchant account solution for your tobacco industry, there are fewer chances to get support. The primary reason is tobacco industry has been alluded to as a high-risk industry.

Various risk factors involved in business-like nature, regulation, chargeback ratio, etc. are the barrier that makes getting a merchant account challenging for a tobacco merchant.

Unsure Laws and Regulations

The apparent ethical and health issues linked to the tobacco sector usually means that the rules regulating business operations are rigorous. Several attempts to restrain on the tobacco industry resulted in a sudden change in legislation, which did not help the seller’s case.

The several constraints placed on companies who sell those goods and the stigma attached to people using them surely make merchant account suppliers and banks wary of being related to the business.

Health Risks Involved with the Products Sold

Consumption of Cigarettes, Cigars, and Tobacco goods shows clear signs of terminal health dangers. Lung Disease, Heart complications, Cancer, and assorted such deathly illnesses are the result of smoking.

High Chargebacks

Chargebacks are quite normal for the tobacco industry. CNP payments are the primary reason behind the chargebacks in the tobacco industry.

Additionally, many youthful buyers find innovative ways to use false credit card info because of the age restrictions set up, resulting in many chargebacks for your retailer.

Delay in shipping, customer satisfaction, and fraudulent scheme are the primary reason to lead chargebacks.

Few Points to Keep In Remembrance While Inquiring A Merchant Account Provider:

• Due to Unpredictable legislation and dangers, during the underwriting process, suppliers the regulating body.
• Merchants needs to be clear about their business operations and goods offered. Underwriters might check there are no falsely marketed marijuana products.
• Underwriters will gauge financial risks involved in your company that will pose a possible threat to banks and processors. It can help tremendously while analyzing your account program.
• Stinks any outstanding or poor debt, reduces chargeback rate, a significant bank balance and a positive credit rating will boost your odds of getting approved for a Tobacco Merchant Account.

Why choose us? 

Getting a merchant account for the tobacco industry may result in many rejections from the banks and financial institutes. You will have to take the help of high-risk merchant account service providers in the market to get the solution. They, with their banking network, make the procedure easy and convenient for you.

For instance, HighRisk Gateways is a high-risk payment processing service provider, getting you a hassle-free solution. It offers you Tobacco Merchant Account with non-3D payment gateway integration with your website. You can maintain your financial transactions without any hassle with our services.

Plus, our payment gateway has various built-in security tools that make your payment processing way more secure than other providers. PCI-DSS Level 1 compliance and SSL encryption help you in securing your sensitive card information from attackers.

Various other benefits are also there that makes operating your business hassle-free mentioned below:

l   Easy integration

l   Cost-effective solution

l   Non-3D Payment Gateway

l   Numerous payment gateway

l   Coinage solution

l   Credit card processing

l   Offshore merchant account solution

l   24*7 reliable customer support

To get more information about the Tobacco merchant account, connect with our team of experts.