Banks consider vape shops high-risk due to the reputational risks the industry represents. The products sold inside these shops are typically heavily regulated by the Federal Drug Administration and are age restricted.
Why are Vape shop merchant accounts considered high risk?
High risk merchant accounts are unable to qualify for standard processing accounts. Traditional banks and payment processors do not approve high risk merchants due to the high charge back ratios and the perceived reputational risks associated with vape shop merchant services. In other words, the more charge backs the higher the risk. The higher charge backs ratios make shopping around for vape shop payment processing rates more challenging.
What are high risk merchant accounts?
Although standard processing accounts are not an option, high risk credit card processing services are offered by certain institutions. This specialized account is set up via a special payment gateway and comes with some restrictions and additional fees used to cover the increased risk. Regardless of whether a vape shop merchant account has been turned down in the past for high risk processing or the vape shop account has been terminated, there are alternative solutions that can be customized to open a vape shop credit card processing account.
For a complimentary statement analysis or more information on High Risk Payment Processing solutions with TouchSuite, call us at 866-840-4721