Start Your Tobacco Merchant Service Account
Sell traditional tobacco products will put you in the high risk merchant account category. Mainly because of the laws and regulations that vary state to state. Unfortunately many business owners sign up with merchant service providers that terminate accounts without warning. Merchant Competitor is one of the leading tobacco payment processors for both online sales and retail “brick and mortar” shops. Merchant Competitor is a tobacco friendly merchant service provider and is bank direct, which means you won’t have independent agents adding bogus fees that eat away at your bottom dollar. It is important to select a merchant service provider that doesn’t leave you in the dark and continues to be up to date on the latest industry news to help protect your business.
A tobacco merchant account is a type of account that allows a business to accept credit card and other electronic payments for tobacco products. Tobacco products are products that are made from the tobacco plant, such as cigarettes, cigars, and chewing tobacco.
Tobacco merchant accounts are considered high risk for credit card processing, ACH (automated clearing house), and banking for several reasons. First, the sale of tobacco products is heavily regulated, and there are strict laws governing the advertising, sale, and distribution of tobacco products. This can make it difficult for tobacco companies to accept payments online, as payment processors and banks may be hesitant to work with them due to the potential for regulatory issues.
Second, the tobacco industry is often associated with negative health consequences and controversy, and there have been numerous lawsuits and regulatory actions related to tobacco products. This can make payment processors and banks hesitant to work with tobacco companies due to concerns about their reputation and potential liability.
Finally, the tobacco industry is subject to significant litigation, and tobacco companies may be at risk of legal action related to their business practices. This can also make payment processors and banks hesitant to work with tobacco companies, as they may be concerned about the potential for legal liability.
There are two main types of tobacco sales: retail sales and e-commerce sales. Retail sales involve the sale of tobacco products in physical stores, such as convenience stores or tobacco shops. E-commerce sales involve the sale of tobacco products online, through websites or online marketplaces.
It is generally legal to sell tobacco products both retail and online, although there may be restrictions on the types of products that can be sold and the way that they are marketed and sold. Some states and countries have laws that prohibit the sale of certain types of tobacco products, such as flavored cigarettes or e-cigarettes, or that restrict the sale of tobacco products to certain age groups
