Tobacco and Cigar Merchant Account
Everyone knows that the tobacco business is not approved by the state, the Ministry of Health and public organizations for the sale of deadly products.
Despite numerous efforts made by the State to reduce the consumption and sale of tobacco products, this industry has been developing rapidly in recent years.
Thanks to a wide range of products, the tobacco industry is considered one of the most profitable industries in the world.
According to statistics, the global revenue of the tobacco industry in 2018 amounted to 12.1 billion US dollars, and by 2021 it is expected to increase to 13.6 billion US dollars.
Every year, the demand for tobacco products is growing, new products are being developed, large tobacco companies and shareholdings are increasing – all this contributes to a further increase in profits in the tobacco business.
Despite the fact that this specific industry is constantly restricted by strict laws, the sale of tobacco and related products is not prohibited by the state and remains an absolutely legal business area.
What Is a Tobacco Merchant Account?
A merchant account for the sale of tobacco products allows retailers to receive payments for their products using credit and debit cards.
However, opening a trading account for tobacco companies may be difficult due to the high degree of risk inherent in this industry. Representatives of Wellcoinex are experts in the tobacco industry and can assist you in obtaining a trading account.
Our payment solutions are developed taking into account the specific needs and characteristics of your company’s activities.
Why Are Tobacco Merchants Considered High Risk?
The combination of factors associated with tobacco products, such as health problems, addiction to them and strict government regulation, makes tobacco dealers a reputational risk in the eyes of financial institutions.
Fortunately, Wellcoinex is a leader in the organization of trading accounts for high-risk enterprises. Regardless of the industry, we are ready to offer your business credit card processing services.
Why do I need a merchant account for tobacco companies?
Rapid business development leads to high competition, in order for your company to remain in demand in the long term, it is necessary to constantly improve.
One way to stand out from the competition is to match consumer trends. Including the provision of various payment methods for products and goods on the Internet.
No matter what kind of tobacco business you run, whether it’s a retail store, kiosk, or online store, you need a trading account in the tobacco industry so that you can process credit cards and other online transactions.
Thanks to a trading account in the tobacco industry, you will expand payment opportunities for consumers and attract new customers.
Since the tobacco industry is a high-risk business, it is not easy to find a reliable provider to connect a trading account.
If you contact a bank or other traditional financial institution with a request to open an account for a tobacco business, you will most likely be refused.
Why can banks refuse to connect a merchant account?
- Chargebacks are widespread in the tobacco industry. Online stores selling tobacco products are particularly susceptible to refunds due to transactions conducted without the presence of a card (Card not present transaction), delays in delivery and fraudulent actions. In addition, due to age restrictions on the sale of tobacco products, many young buyers are finding ways to provide fake credit card information, which leads to even more chargebacks.
- The obvious ethical and medical problems associated with the tobacco industry require the adoption of strict laws and other regulations governing the activities of the tobacco industry. In addition, States are systematically trying to suppress the tobacco industry, which leads to a sharp change in legislation and the introduction of new restrictions and rules.
- A serious health risk associated with the products sold and increased control by the state apparatus. The consumption of cigarettes, cigarettes, cigars, smoking mixtures and other tobacco products carries a deadly danger to health. Lung diseases, cardiovascular complications, cancer and other dangerous diseases caused by smoking are the reason for the close attention of regulatory organizations, which also causes the reluctance of banks to cooperate with tobacco companies.
How Wellcoinex Helps You Secure Online Tobacco Credit Card Processing
Our long-term experience in the field of high-risk payments has allowed us to optimize the process of reviewing applications and underwriting. Our competent customer service managers will help you collect documents, give answers and advise on all your questions, as well as provide real support in case of any problems with your account.
At Wellcoinex, we select the payment solution for you that best meets the needs of your tobacco business. For each of our sellers who process payments, we develop an individual solution to reduce risks and ensure reliable processing.
Some of these solutions include:
- Brokerage changes made by acquiring banks
- Secure MOTO and proprietary integrated payment gateways
- Maintaining compliance with changes on the ground
- Risk monitoring solutions to detect and prevent fraud
- Services to reduce the refund of payments
Tobacco Payment Processing Integrations
If you want to provide your customers with the opportunity to pay periodically, offer solutions for contactless and mobile payments, or connect your payment solutions to existing CRM software, Wellcoinex will provide you with seamless integration.
We optimize this process thanks to our own procedures that speed up the application process. And thanks to customizing the payment processing application for each of our tobacco and cigar sellers, we can integrate solutions tailored to your specific needs.
Why choose Wellcoinex to open a merchant account for a tobacco company?
We offer customized and affordable technological solutions when opening trading accounts for businesses of all types and sizes.
Thanks to our individual conditions, you will get additional advantages over competitors, you will be able to reduce transaction fees and attract new customers.
Apply to open a Tobacco Merchant Account today, and tomorrow you will be able to take advantage of credit card processing!