Selling vape, e-Cig, and e-Juice products online presents a unique set of challenges that make them high-risk merchants. Below are some of the reasons why:
Age Restrictions:
Association with Tobacco:
Regulatory and Compliance Issues:
Conclusion:
Merchants who sell vape, e-Cig, and e-Juice products online must take steps to mitigate the risks associated with these products. This includes complying with all applicable laws and regulations, verifying the age of their customers, and working with payment processors and banks that are willing to support their business. By doing so, they can minimize chargeback fees and protect their reputation while continuing to meet the demand for these popular products.
Age Verification: Merchants should implement strict age verification processes to ensure that they are not selling their products to minors. This can include using third-party age verification services or requiring customers to submit a copy of their government-issued ID.
Compliance with Regulations: Vape, e-Cig, and e-Juice products are subject to complex regulations that vary by country and region. Merchants must ensure that they are complying with all applicable laws and regulations, including product labeling, marketing restrictions, and age verification.
Secure Payment Processing: Merchants should work with payment processors and banks that are willing to support their business. This can include finding payment processors that specialize in high-risk industries or working with banks that have experience working with vape, e-Cig, and e-Juice product merchants.
Chargeback Prevention: Merchants should take steps to prevent chargebacks by providing accurate product descriptions, ensuring timely shipping and delivery, and offering excellent customer service. Merchants should also have clear return and refund policies in place and respond promptly to customer inquiries and concerns.
Brand Reputation: Merchants should be proactive in protecting their brand reputation by addressing customer complaints and concerns, offering high-quality products, and engaging in transparent business practices.
Check out our knowledge hub to learn more about what processing fees, application process, chargebacks and cash reserve requirements or TMF / MATCH list mean.
Accepting subscription-style payments
Being on the Member Alert to Control High-Risk Merchants, or MATCH list — a list managed by Mastercard that monitors merchant behavior, like chargeback history
High average transaction sizes
High sales volumes
Highly regulated industries
International sales
Large number of card-not-present transactions
Little to no business experience
Long fulfillment time frames
New or poor credit scores
Past fraud or illegal activity
It takes effort for businesses to secure a payment processing partner when they are considered high-risk but it is definetly possible to find the right payment solution if you focus on:
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