Credit and Debit Card Processing for Online Tobacco Businesses
There is no federal law that prohibits the online sale of cigarettes, cigars, smokeless tobacco, or loose-leaf tobacco, but you wouldn't know it from the way the credit card processing industry treats card-not-present tobacco sellers. Banks are generally hesitant to process payments for online tobacco stores due to the inconsistent way tobacco is regulated by different states. In addition, there's always a greater degree of risk associated with online sales as opposed to in-person transactions. For these reasons, you may find it necessary to pay higher per-transaction fees and lower deposit limits through a dedicated high risk merchant account in order to sell tobacco through your online store. If you can find a quality credit card processor, however, the value of increased sales, streamlined operations, and reliable customer support will offset the higher rates you pay.
To help you find a top-rated credit card processor, we've put together the following list of the best merchant accounts for online tobacco sellers. The companies on this list offer online shopping cart integration, payment gateways, internet marketing tools, and other useful services for selling tobacco online. They are also known to provide low-commitment contracts with transparent pricing and quality customer service. To find the right provider for your online tobacco store, be sure to research each processor's products and features and compare pricing and terms.
How to Select the Best Online Tobacco Credit Card Processor
When selecting the best credit card processor for an Online Tobacco business in the USA, there are several factors to consider. Here, we have identified some of the most important considerations.
High-Risk Merchant Account
The Online Tobacco Industry is considered a high-risk industry by most credit card processors, which means that you will need a high-risk merchant account to accept credit card payments. It's important to choose a credit card processor that specializes in high-risk merchant accounts and has experience working with businesses in the Online Tobacco Industry.
Age Verification
The Online Tobacco Industry is heavily regulated and requires age verification to ensure that only customers who are 21 years or older can purchase tobacco products. It's important to choose a credit card processor that has built-in age verification tools to help you comply with these regulations.
Compliance
As mentioned, the Online Tobacco Industry is heavily regulated, and it's important to choose a credit card processor that is familiar with these regulations and can help you stay in compliance. You will need to comply with both federal and state laws, which can vary depending on where you are located.
Fraud Prevention
Online tobacco businesses are at a higher risk for fraud due to the nature of their products. It's important to choose a credit card processor that has built-in fraud prevention tools to help protect your business from chargebacks and other fraudulent activities.
Credit Card Processing Fees
Credit card processors charge fees for their services, including transaction fees and other charges. It's important to choose a credit card processor that offers competitive rates and transparent pricing.
Reliable Customer Support
Finally, it's important to choose a credit card processor that offers excellent customer support. You will likely have questions and concerns as you set up your online tobacco business, and you need a credit card processor that can provide prompt and helpful assistance when you need it.
In summary, when selecting a credit card processor for an Online Tobacco business in the USA, it's important to choose a processor that specializes in high-risk merchant accounts, offers age verification and fraud prevention tools, helps you stay in compliance with regulations, offers competitive pricing, and provides excellent customer support.
Top Picks for Merchant Services for Online Tobacco Sales
#1 PaymentCloud
Top Pick for Online Tobacco Credit Card Processing
Based in Woodland Hills, California, PaymentCloud is a merchant account provider that specializes in serving high risk business types. The company's products and services include point-of-sale solutions, mobile phone swipers, an online payment gateway and virtual terminal, EMV-compatible terminals, and merchant cash advances. PaymentCloud is a good option for online cigar, pipe, and tobacco sales.
PaymentCloud provides a dedicated account rep to all new merchants for the life of the account. The company has not received any negative complaints on consumer forums, and it customizes its pricing according to each merchant's business type and processing history. The BBB does not maintain a profile for PaymentCloud at this time, but CPO gives the company an “A.”
Why PaymentCloud is the Best Online Tobacco Payment Processing Solution
If you're an online tobacco business owner, you understand the challenges that come with accepting credit card payments. Many traditional payment processors do not support the sale of tobacco products, leaving businesses with limited options for payment processing. This is where PaymentCloud comes in – as a reliable and secure payment processing solution that specializes in high-risk industries like online tobacco sales.
Seamless and Secure Payment Processing
One of the main advantages of PaymentCloud is its ability to provide seamless and secure payment processing for online tobacco businesses. With PaymentCloud, you can accept all major credit and debit cards, as well as ACH and e-check payments. Moreover, PaymentCloud has a dedicated team of risk management experts that ensure all transactions are legitimate and meet the industry's compliance requirements.
Customized Payment Solutions
Another reason why PaymentCloud is an excellent option for online tobacco businesses is its flexibility. PaymentCloud provides customized payment solutions tailored to your business's unique needs. For instance, PaymentCloud offers a virtual terminal that allows businesses to accept payments online without a physical credit card machine. Additionally, PaymentCloud provides chargeback prevention and management tools to help businesses minimize the risk of fraudulent chargebacks.
PaymentCloud offers a secure, reliable, and flexible payment processing solution for online tobacco businesses. Its dedicated team of experts ensures that all transactions are legitimate and compliant with industry regulations. Moreover, PaymentCloud provides customized solutions that meet the specific needs of your business, including a virtual terminal and chargeback prevention tools. If you're an online tobacco business owner looking for a reliable payment processing solution, PaymentCloud is an excellent option to consider.
For more information, visit the PaymentCloud website or call (888) 506-785
eMerchantBroker
Top Pick for Online Tobacco Merchant Accounts
eMerchantBroker is a Los Angeles, California-based company that offers high risk e-commerce processing solutions including card-not-present tobacco merchant accounts. The company's products include ACH processing, an online payment gateway, merchant cash advance, and a chargeback management system to help merchants dispute and resolve chargeback claims. eMerchantBroker.com can provide an offshore merchant account for online tobacco sellers as long as they are not selling illegal items.
eMerchantBroker.com offers custom pricing for each merchant and maintains a low complaint rate relative to its size and merchant portfolio. Our review of eMerchantBroker gives the company an “A” rating overall and the BBB assigns the company a rating of “A+.”
Why eMerchant Broker is the Best Payment Processing Option for Online Tobacco Merchants
For small business owners who sell online tobacco products, finding a reliable and secure payment processing solution can be a challenging task. eMerchant Broker is an excellent option for business owners who want to accept credit card payments from customers buying online tobacco products. Here are a few reasons why eMerchant Broker stands out in the online tobacco payment processing space.
Specialized Solutions
eMerchant Broker has specialized payment processing solutions tailored specifically for online tobacco merchants. These solutions comply with all industry standards and regulations, ensuring secure and reliable transactions. With eMerchant Broker, online tobacco merchants can accept credit cards, debit cards, and other payment types.
Multiple Payment Options
eMerchant Broker offers a range of payment options for online tobacco merchants. This includes ACH payments, recurring billing, e-checks, and more. With multiple payment options, merchants can provide their customers with flexibility, increasing customer satisfaction and sales.
Fraud Detection and Prevention
eMerchant Broker's payment processing solutions include advanced fraud detection and prevention tools. This ensures that merchants are protected from fraudulent transactions, chargebacks, and other payment-related issues. With eMerchant Broker, online tobacco merchants can enjoy peace of mind, knowing that their payment processing is secure and reliable.
eMerchant Broker is an excellent payment processing option for small business owners who sell online tobacco products. With specialized solutions, multiple payment options, and advanced fraud detection and prevention tools, eMerchant Broker provides secure and reliable payment processing services for online tobacco merchants.
For more information, see the eMerchantBroker website or call (877) 301-3442.
Host Merchant Services
Top Pick for Online Tobacco Merchant Sales
Host Merchant Services is a Newark, Delaware-based merchant account provider that is able to provide merchant accounts for some online tobacco merchants. The company's products and services include point-of-sale solutions, online marketing tools, an online payment gateway and virtual terminal, mobile credit card processing, gift and loyalty programs, merchant cash advance, and offshore merchant accounts. Host Merchant Services specializes in e-commerce businesses and provides a free website and email address to interested merchants. Host is a good fit for online tobacco vendors that have an established credit card processing history.
Host Merchant Services has received only positive feedback on public forums, with most reviewers singling out the company's customer service for praise. Host offers custom pricing to all of its merchants, but most merchants will enjoy transparent pricing and the ability to cancel service without penalty. The Better Business Bureau gives Host an “A+” rating, and CPO also gives the company an “A+.”
Why Host Merchant Services is the Ideal Choice for Online Tobacco Payment Processing
As a small business owner who sells online tobacco products, it can be challenging to find a credit card processing service that caters to your unique needs. Host Merchant Services is a payment processing company that understands the complexities of online tobacco payment processing and offers solutions that are specifically tailored to this industry.
Extensive Experience in High-Risk Industries
Host Merchant Services is an ideal choice for online tobacco payment processing is their extensive experience in high-risk industries. Host Merchant Services has worked with several businesses in the tobacco industry and has developed a deep understanding of the specific needs and requirements of online tobacco merchants. They have a comprehensive suite of payment processing solutions that can help you navigate the challenges of selling online tobacco products and ensure that your transactions are secure and reliable.
Commitment to Transparency and Fairness
Another reason why Host Merchant Services is a good option for online tobacco payment processing is their commitment to transparency and fairness. Unlike some payment processors that charge hidden fees or impose unreasonable restrictions, Host Merchant Services offers transparent pricing and flexible payment options. They also provide exceptional customer support and are always available to help you with any issues or questions you may have.
Cutting-Edge Security Features
Host Merchant Services offers cutting-edge security features to protect your customers' sensitive information and prevent fraudulent activities. Their payment gateway is PCI compliant and supports 3D Secure authentication, which provides an extra layer of security for online transactions. They also offer advanced fraud detection tools that use artificial intelligence and machine learning algorithms to detect and prevent fraudulent activities in real-time.
In conclusion, Host Merchant Services is the perfect choice for small business owners who sell online tobacco products and need a reliable, secure, and transparent payment processing solution. With their extensive experience in high-risk industries, commitment to transparency and fairness, and cutting-edge security features, Host Merchant Services can help you grow your online tobacco business while ensuring that your customers' payment information is safe and secure.
For more information, visit the Host Merchant Services website or call (888) 727-4538.
Additional Options
National Processing
National Processing is a well-established high risk payment processor headquartered in Lindon, Utah. The company has been serving U.S. merchants with an emphasis on difficult-to-place and high risk merchant types since 2007. National Processing can supply processing for online tobacco stores and offers a wide range of services including an online payment gateway with QuickBooks integration, POS equipment, electronic check processing, and offshore banking partnerships. National Processing is a good fit for online cigar and tobacco sellers with limited payment processing history or the need for offshore merchant accounts.
National Processing has received overwhelmingly positive feedback with regard to its sales and support team and offers custom pricing depending on a merchant's business type. Our review of National Processing gives the company an “A+,” and the Better Business Bureau awards National Processing an “A+” as well.
National Processing: Making Online Tobacco Credit Card Sales Easy
National Processing is an excellent option for small business owners who sell online tobacco products and need a reliable payment processing solution. Online tobacco sales require a specialized payment processing service, as many traditional payment processors refuse to work with these types of businesses due to the high-risk nature of the industry. National Processing understands the unique needs of online tobacco merchants and offers a secure and seamless payment processing solution that meets their needs.
Customized Payment Solutions
National Processing is a great option for online tobacco merchants is their ability to provide customized payment solutions that are tailored to each business's specific needs. They offer a range of payment processing options, including credit and debit card payments, e-checks, and ACH transfers. Additionally, National Processing provides fraud detection and prevention tools to protect against chargebacks and fraudulent transactions, ensuring that businesses can operate safely and securely.
Competitive Pricing
Another advantage of National Processing for online tobacco merchants is their competitive pricing. They offer transparent and affordable pricing with no hidden fees, making it easy for businesses to understand their payment processing costs. Furthermore, their payment gateway is easy to integrate with online shopping carts, making it simple for businesses to start accepting credit card payments online quickly.
National Processing is an excellent choice for small business owners who sell online tobacco products and need a reliable payment processing solution. Their customized payment processing solutions, fraud prevention tools, and competitive pricing make them a top choice for businesses in the online tobacco industry. With their secure payment gateway and easy integration, National Processing makes it easy for online tobacco merchants to accept credit card payments and grow their business.
For more information, see the National Processing website or call (385) 777-1235
CDG Commerce
Headquartered in Port Orange, Florida, CDG Commerce has consistently rated as one of the best merchant account providers on CPO since we first reviewed the company. CDG Commerce is capable of serving merchants of all sizes and types, including some online tobacco sellers. The company offers traditional retail credit card terminals, mobile phone credit card processing, an online payment gateway and virtual terminal, QuickBooks integration, third-party shopping cart integration, API integration for websites, and various point-of-sale solutions. CDG Commerce is a great option for tobacco shops with solid business credit that have been operating for a long time and would simply like to start selling online.
In addition to its wide array of services, CDG Commerce offers custom pricing to most of its high risk merchants. As a result, the company enjoys a large number of positive testimonials from its clients on this website and in other consumer protection forums. The Better Business Bureau currently assigns CDG Commerce an “A+” rating, and CPO also gives CDG Commerce an “A+.”
CDG Commerce: The Ideal Credit Card Processor for Online Tobacco Merchants
As an online tobacco merchant, finding a reliable credit card processing service that caters specifically to your business needs can be a challenge. That's where CDG Commerce comes in. CDG Commerce offers a range of features that make it an excellent choice for small business owners who sell online tobacco products and need to accept credit card payments from customers who are buying these products.
High Level of Security
One of the standout features of CDG Commerce is its high level of security when it comes to processing payments for online tobacco products. CDG Commerce is fully PCI compliant, meaning that it adheres to the highest security standards set forth by the Payment Card Industry Security Standards Council. This ensures that your customers' sensitive payment information is protected at all times and helps to prevent fraudulent transactions.
Competitive Pricing Structure
Another advantage of CDG Commerce is its competitive pricing structure. With a simple, transparent pricing model that includes no hidden fees, CDG Commerce offers affordable rates for online tobacco merchants. Additionally, CDG Commerce provides a variety of payment processing options, including recurring payments and mobile payments, to make the payment process as seamless as possible for both you and your customers.
Exceptional Customer Service
CDG Commerce has a reputation for providing exceptional customer service. With a team of dedicated support specialists available around the clock to answer any questions or concerns you may have, you can trust that your business is in good hands with CDG Commerce.
If you're an online tobacco merchant looking for a secure, affordable, and customer-focused credit card processing service, CDG Commerce is an excellent option. Its commitment to PCI compliance, transparent pricing, and exceptional customer service make it a top choice for small business owners who need to accept credit card payments for online tobacco products.
For more information, see the CDG Commerce website or call (888) 393-1079
Frequently Asked Questions: Merchant Online Tobacco Sales Credit Card Processing
Merchant accounts for online tobacco sales are financial services that cater to businesses selling tobacco products, including cigarettes, cigars, and other tobacco-related items, through online platforms. These accounts enable these businesses to accept credit card and electronic payments from their customers.
Online tobacco sales involve certain legal and regulatory considerations due to age restrictions and regional laws governing the sale of tobacco products. Specific merchant account providers for online tobacco sales understand these complexities and offer solutions tailored to meet the unique needs of the tobacco industry.
To find the best merchant account for your online tobacco sales business, consider the following steps:
a. **Research Tobacco-Focused Processors:** Look for payment processors that specialize in serving the tobacco industry and online tobacco sellers. These providers will understand the specific challenges and regulations faced by tobacco businesses and can offer suitable solutions.
b. **Check for Age Verification Tools:** Ensure that the merchant account provider offers robust age verification tools to comply with legal requirements and prevent sales to minors.
c. **Verify Compliance Measures:** Choose a provider that is well-versed in the legal and regulatory landscape of tobacco sales to ensure that your business stays compliant with all applicable laws.
d. **Compare Transaction Fees and Rates:** Assess the processing fees, transaction rates, and any other costs associated with each potential merchant account provider. Choose a provider with transparent and competitive pricing that aligns with your business's size and transaction volume.
e. **Check for Dispute Resolution Support:** Given the nature of online tobacco sales, it's essential to select a provider with a reliable dispute resolution system to handle chargebacks and customer disputes.
Many mainstream merchant account providers may classify online tobacco sales as high-risk due to legal and compliance concerns. As a result, specialized merchant accounts for online tobacco sales are often more suitable, as they are designed to handle the unique needs and risks associated with the tobacco industry.
Yes, online tobacco sellers must adhere to strict legal requirements, including age verification, tax regulations, and compliance with regional laws regarding tobacco sales. Choose a merchant account provider that has experience in the tobacco industry and understands the legal landscape to ensure proper compliance.
The time it takes to set up an online tobacco sales merchant account can vary depending on the provider and the nature of your business. The process may involve additional due diligence due to the high-risk nature of the industry. Typically, the setup can take a few days to a few weeks.
Yes, specialized merchant account providers for online tobacco sales typically offer solutions for credit card payments, debit cards, and other forms of electronic payments to facilitate a seamless checkout experience for your customers.
Yes, online tobacco sales merchant accounts usually support both one-time transactions for individual orders and recurring billing for subscription-based services or auto-shipments of tobacco products.
Carefully review the contract terms and fees of potential merchant account providers to identify any hidden costs. Watch out for setup fees, monthly minimums, and any other charges that might impact your overall costs.
Yes, online tobacco sellers can switch merchant account providers if they are not satisfied with the service or find a better fit for their specific needs. However, be mindful of any contractual obligations and potential termination fees that might apply.
Finding the best merchant account for your online tobacco sales business is critical for ensuring smooth and secure payment processing while adhering to legal and compliance requirements. Take the time to research and compare different options to choose a provider that understands the unique needs and challenges of the tobacco industry.
Edward
I wanted to extend my sincere thanks for your in-depth and enlightening article on “Best Merchant Accounts for Online Tobacco Sales”. As a professional engaged in online tobacco sales, your guide has been crucial in helping me understand and navigate this specialized niche.
Your detailed breakdown of each merchant account, highlighting their unique strengths, potential limitations, and key features, was expertly done. You have a talent for simplifying complex topics, making them much more digestible for readers like myself.
I particularly appreciated your emphasis on important factors such as transaction fees, customer service, and security protocols. Your insights into the specific requirements of the online tobacco sales industry, including managing high-risk transactions, processing international payments, and dealing with regulatory compliance, were extremely useful.
The depth of research, time, and expertise you put into this guide is evident. Your commitment to providing accurate, up-to-date, and practical information has greatly simplified what is typically a complex decision-making process, allowing professionals like me to make informed choices.
Thank you once again for your significant contribution to this field. Your hard work, dedication, and expertise are deeply appreciated.