The Transaction Group (TTG) provides E-cigarette merchant account solutions at the lowest rates in the industry. Our strong relationships with high risk banking partners allow us to undercut the competition and save you money.
Domestic banks (located in the United States) are less familiar with this new industry and can be hesitant to approve a U.S. or an International E cig merchant for a merchant account. Some processing companies have gone so far as to shut down E-cig merchants with little or no warning, simply because the business model no longer fits into their conservative low-risk portfolio.
If you’re tired of being gouged by your current provider, or you’ve had the door slammed in your face by a processor that previously welcomed you in, we’re happy you found us. If you are just starting up your e-cig business and need e-cig credit card processing, we’d be happy to get you started out right.
At TTG, we work with small and large merchants. Regardless of the size of your operation or your monthly sales volume, we’ll set you up with the right card processing solution for your needs.
If your business is conducted from the trunk of your car, a kiosk in a mall, or trade shows and events, a wireless solution may be right for you. We also have smart phone credit card processing available in which you can easily process cards via your I-phone, Droid, or Blackberry.
For businesses that have a traditional brick-and-mortar store, a dial up terminal may suffice. Merchants with online stores will need an e-commerce e-cigarette merchant account.
The E-Cig Biz Model
The challenge merchants face when trying to set up electronic cigarette merchant accounts stems from the fact that their business is classified in the same category as tobacco products by banks. Even though e-cigs are a tobacco-free and nicotine-free alternative to cigarettes, they are immediately marked as high risk. The reason is the business model. Some factors that make up the business model include:
• The merchandise that your business supplies
• Merchandise pricing
• Your company’s advertising & marketing methods
• The manner which you deliver merchandise
• Return/ refund policies
• Customer service and customer support available
E-Cig Processing History
Domestic banks that are willing to board e-cigarette retailers will do so at their high risk rate based on the business model. They will then look at other factors such as processing history and personal credit.
Processing history is important because it shows the bank how your business handles transactions – particularly transactions where the business failed to come to a settlement with a customer’s dispute, resulting in the customer choosing to charge back the purchase to the credit card.
Sometimes a charge back cannot be prevented. But having very few of them shows processing banks that, for the most part, your customers are happy with the products and services you are selling.
Banks themselves can be penalized with heavy fines if their charge back ratio exceeds what is allowed by Visa and MasterCard, and they therefore pass this risk onto merchants through higher rates in the high risk category. Too many charge backs by your customers will be sure to land your business on the TMF (terminated merchant file), leaving you with very few options for an e-cig merchant account.
If you have been accepting credit cards for your business and have a favorable processing history, you may have some leverage in negotiating a better rate. If you are just starting your business or have never had card processing capabilities, obviously you will have no processing history. You will be subject to a slightly higher rate at first, but by establishing a good track record, you’ll be able to secure a better rate in the future.
Why TTG is the Solution for your E-cig Biz
Since 2004, TTG has been providing merchant account solutions to all types of businesses throughout the world, and has become a leader in this niche over the years. We understand the challenges that high-risk businesses face and we take the time to find the best solution for each merchant’s specific needs.
Our FREE RATE ANALYSIS is our commitment to you. We offer the lowest rates on U.S. and International e-cig merchant accounts and can save you as much as 25% in current processing rates and fees. Email your most recent statement to firstname.lastname@example.org , or fax it to 312-896-5628 and we’ll follow up in 1 business day with your projected monthly and annual savings.