Through the years, smoke and head shops have gained more popularity. But despite the ever-increasing number of businesses in this industry, banks still associate them as high risk.
One of the many reasons for this is the strict regulation imposed by the government. Every state has different laws placed for tobacco sales and Electronic Nicotine Delivery System. Add to it the difficulty of verifying a customer’s identification and if they are legally allowed to make the purchase.
However, it’s still not impossible to be approved for a smoke shop merchant account today. This is where a smoke shop credit card processor can come to the aid of businesses in this industry.
Vape Shop Credit Card Processing Expectations
There are different offerings from every processor, and smoke shop owners need to evaluate every benefit they can get. Here are some of the things one can expect and what they should look for as they continue to find a credit card processor:
- Mobile Payments – apart from card payments, mobile payments come a close second in terms of popularity among global customers. Smoke shops should look for merchant accounts that allow them to accept mobile payments to enable a hassle-free payment experience for their customers.
- Point of Sale (POS) – another diverse payment platform is having a point of sale system and physical terminal in the shop. Merchant account providers should be able to provide this equipment to businesses.
- Online Invoicing – the ability to send online invoices is another important factor to consider. This is to make sure that every transaction made is acknowledged, and is one way to remind a customer of their purchase — what it was when it was made, and how much was charged).
- Payment Gateway – secured gateways are a must to ensure that a customer’s personal information is safely stored in the system. Merchant accounts should have a SSL encryption whenever a customer transacts in the shop.
- Technical Support – customer complaints need to be handled well by well-trained technical support. They are the bridge between customers and business owners. They are also the backbone that addresses customer complaints thus meeting their concerns to their satisfaction. Good technical support makes a huge impact on lowering down chargeback rates.
FDA Rules for Smoke and Head Shops
It was mentioned that smoke shops follow strict regulations imposed by the government. It is also important to know what these regulations are as one learns about smoke shop online credit card processing. The Food and Drug Administration (FDA) has created a list of rules for Electronic Nicotine Delivery System (ENDS) Sales.
Precautions to Take with Every Sale
- Only customers 18 years and above can buy tobacco-goods.
- Ask for a photo ID of every customer under the age of 27 who is trying to make a purchase.
- No free sample should be given away. This includes components and parts.
- No e-cigarette sale in vending machines unless it is situated in an adult-only facility.
It is worth noting that these rules are mainly designed for e-cigarette sales. However, these rules are still applicable to tobacco sales and tobacco-related products. Owners should also keep in mind other additional laws and regulations that are set by every state government.
What Can You Sell in Smoke Shops
Moreover, there are only certain products that can be sold in smoke shops. These different products may also come with limitations particularly for cigarettes, cigars, and e-cigarettes.
- A shop cannot sell cigarettes that contain other distinguishing flavors aside from menthol.
- Packages should not be broken apart in smaller batches.
- And each package should not contain fewer than twenty cigarettes.
- A warning statement should also be visible in every cigarette package.
- Ads for cigarettes and cigars should have a warning statement as well.
- Cigars that aren’t in a package can be sold individually but should come with a warning statement. The sign should be posted within 3 meters of the cash register.
- E-cigarettes should also come with a warning statement.
- Display ads for e-cigarettes also need a warning statement.
- Other Products Available
- Grinders Rolling Papers
- Glass Pipes
- Dab Gear
Why Smoke Shop Credit Card Processing is Needed
From what can be gathered from the information above, the topmost reason to get a merchant account is to have the accessibility of accepting card payments. But what else is on the table aside from online credit card processing for smoke shop and the likes?
- Smooth-Running Business Processes – merchant accounts are equipped with ways for businesses to track sales (including chargebacks) and keep a record of customer transactions and information. It makes it easier for owners to manage outbound and inbound transactions.
- Efficient and Secured Payments – payments made in smoke shop POS and merchant account gateways are settled faster with this system. This means faster transaction approvals between customers and businesses. On top of that, payments also go through a secure channel that not only verifies customer identification but also screens fraudulent transactions. This helps in keeping chargeback rates at a minimum for these merchant accounts.
- Legal Business Practices – most importantly, payment processors guarantee that all card transactions made in smoke or head shops are within legal boundaries. With varied state regulations, merchant accounts provided by reliable processors help ensure that businesses can comply with these regulations all the time.
Credit card processing is possible with a merchant account for a vape shop is possible through a qualified payment processor. Basically, payments are accepted using a virtual credit card terminal or a payment gateway for shops to be able to accept credit and debit card payments. These payments are then funneled to the merchant’s acquiring bank account.
Start Accepting Payments Today!
If your business is ready to accept online payments, setting up a merchant account is a necessity. At Allied Payments, we are here to you help grow your business with the most reliable and affordable merchant services. Contact us to learn more.