Updated September 17, 2024

As smoking bans become increasingly common, more and more people are putting down their traditional tobacco cigarettes and picking up electronic cigarettes or vape pens. Between 2011 and 2018, the number of people who vaped worldwide grew from seven million to 41 million . In 2019, the e-cigarette and vaping industry was worth $19.3 billion.

For many former smokers, part of the appeal of vaping is the reduced risk . Ironically, many payment processors consider vape businesses as high-risk. It can be tricky to get a Vape and E-Cig Processing Solution for your business, including payment processing and merchant accounts.

If you own a company in the e-cigarette industry, you need to know what payment processing options are out there and how you can go about getting an e-cig merchant account, such as an e-cigarette merchant account.

Process Payments With a Zen Payments Vape Merchant Accounts

As the vape industry continues to grow, vape merchants will also continue to see success. One of the best ways to carve out a corner of the market is an online store. This is where difficulties can set in. Finding a vape merchant account provider who offers payment gateways and payment processing can be difficult.

At Zen Payments, we have years of experience offering merchant services to high-risk merchants, including vape merchants. We understand the vape industry, as well as the risks that come with e-cigarette merchant accounts and other merchant services. Let us help you with your e-commerce payment solutions. We will work with you to set up payment gateways, payment processing, and a merchant account for your online vape shop. With our decades of experience and large financial network, there's no better partner than Zen Payments!

Why Vape and E-Cig Processing Solutions Are High-Risk

Vaping and e-cigarettes aren’t illegal, but they are highly regulated. For example, you can’t sell e-cigarettes or vaping liquid to minors, which as of 2019, is anyone under the age of 21 .

Generally speaking, payment processors view highly regulated industries, such as the tobacco industry and its cousin, the e-cigarette industry, as high-risk . If minors purchase your products or there’s another violation of regulations, you can end up in hot water, and so can the payment processor that allowed the transaction to occur. That means potentially higher costs for the payment processor and an overall increased risk when working with businesses in the e-cigarette industry.

Although vaping liquids and e-cigarettes that replace tobacco products are legal for adult consumption, vaping itself can be seen as a gray area. For example, some people vape marijuana, which isn’t legal across all 50 states. Because of the connection to potentially illegal drugs, many payment processors classify vape merchants as high-risk.

Why Popular Payment Processors Don't Offer a Vape and E-Cig Processing Solution

It can be tricky for an e-cig businesses to get vape merchant accounts from a traditional payment processor for a few reasons:

• Higher costs for the processor: Companies that fall into the high-risk category typically cost more for the payment processor. High-risk companies often have a high chargeback rate . Customers might purchase an e-cigarette, decide they don’t like its taste or don’t think it’s effective and dispute the charge with their credit card. When a customer disputes a charge, the issuing bank takes the money back. The merchant may or may not be able to cover it, in which case, the payment processor is responsible.
• Potential for legal action: Vaping is legal but regulated. A merchant that sells its products to people under the age of 21 or that doesn’t verify age can get in legal trouble. There’s a chance that trouble could extend to the payment processor, which allowed the transaction to go through. This can be especially tricky if your vape business accepts online payments.
• Potential for reputational harm: The public’s opinion matters for payment processors providing e-cigarette merchant accounts. Many processors don’t want to be associated with high-risk industries, including vape shops. Even if an e-cigarette company does everything by the book, they may still have a hard time finding payment processing and merchant services.

Some of the more popular payment processors are up-front in their refusal to work with vape and e-cig processing solutions and others in the e-cigarette industry. If your company tries to apply for an account with them, it’s likely to get denied immediately. That's where high-risk payment processing comes in. You'll need a high-risk payment processor who is experienced with setting up a retail vape merchant account and a high-risk payment gateway.

What Can a High-Risk Vape Merchant Account Offer You?

Fortunately, high-risk merchant accounts aren’t impossible to get. The trick is finding a payment processing company that specializes in working with high-risk businesses. High-risk payment processors know the ins and outs of operating a high-risk business and are comfortable providing high-risk e-commerce payment solutions. They are also familiar with the industry’s regulations and with the e-cigarette industry itself.

Some of the features a high-risk merchant account can provide that a traditional account can’t include:

• Industry Expertise: Traditional merchant account providers don't understand the ins and outs of the vape industry, and are unwilling to learn. High-risk merchant account providers have experience in this industry and can help vape merchants handle the restrictions and issues that come with a vape merchant account and payment processing.
• Low Fees: High-risk payment processing companies that specialize in vape credit card processing typically offer competitive rates.
• Chargeback Protection: Vape merchants often see a high chargeback rate. High-risk payment processors have tools in place to help prevent chargebacks and protect vape merchants from the high fees that come with chargebacks.
• Secure Payment Gateways: High-risk vape merchant account providers can also get you set up with payment gateways that include additional fraud prevention measures.
• High Approval Rates: High-risk payment processors work with financial partners who are friendly to high-risk businesses. For example, Zen Payments partners with 15 other financial institutions. That means that these processors are much more likely to find a partner for e-commerce payment solutions for cigarette and vape merchants. In fact, Zen Payments has one of the highest approval rates in the industry at 98%. If you've been rejected by traditional credit card processors for a vape merchant account and payment processing, trust Zen Payments. We'll get you set up with a high-risk merchant account quickly.

What Is Zen Payments' Vape Merchant Account Approval Process?

Zen Payments specializes in working with high-risk merchants , and will work to help you find a Vape and E-Cig Processing Solution. We make it easy to get approved for a merchant account and accept card payments. Not only do we have an approval rating of 98%, but we also take you through the entire underwriting process quickly so you can accept payments in no time. We also have years of experience with the vape industry. We will not only set up a vape merchant account and provide merchant services, we will walk you through any questions you have about high-risk services, online payments, and anything else.

To apply for a merchant account with us, you’ll need to provide the following information:

• Business Name
• Your First and Last Name
• Contact Information (Your name and phone number)
• Business License
• Business Financial Records
• Bank Account Statements

Contact Zen Payments to Set up Your Merchant Account Today

Accepting card payments allows you to grow your e-cig or vape shop, whether you want to reach more customers online or make it more convenient for your in-person customers to pay. Don’t take the risk of getting turned down or having your account closed by a traditional payment processor. Work with a company that understands the unique needs of your business and has decades of experience with high-risk vape merchant accounts.

If you're looking for a vape merchant account, payment processing, and/or payment gateways, Zen Payments is the best choice. Get started on your Zen Payments account application today, or get in touch with us to learn more.