Feeling overwhelmed during your search for the right smoke shop merchant account?
Finding a payment processing provider for your small business is no easy feat — especially if you sell highly regulated products like tobacco, vapes, CBD, and delta-8.
But have no fear: we’re here to help. In this blog, we’ll explore everything you need to know about securing a smoke shop merchant account. Plus, we’ll share our curated list of the top three options to check out.
Smoke Shop Merchant Account Basics
The world of payment processing can be intimidating, so let’s start with some simple definitions. Here are two key terms to know:
- Payment processing is a service that lets your business process sales transactions. Your payment processor is responsible for securely transferring funds from your customer’s bank accounts to yours when you make a sale.
- A merchant account is the account you have on file with your payment processing provider. This is where funds land after you process a sales transaction.
If your smoke shop sells products like CBD, delta-8, and kratom, that’s where things get a little more complicated.
These substances are relatively new to the market, illegal in some states, and still being regulated — so most payment processors will label your merchant account as “high-risk” if you sell them. This means you need a specialized service called high-risk payment processing.
What Is High-Risk Payment Processing?
The scrutiny surrounding common smoke shop products like CBD, delta-8, and kratom can make standard payment processors wary of issuing you a merchant account — which is why you need to partner with a high-risk payment processor.
Let’s take a closer look at what makes high-risk payment processing unique:
- Application process: Securing a smoke shop merchant account through a high-risk payment processing provider often takes longer and requires additional documentation.
- Higher fees: High-risk payment processing is usually slightly more expensive when it comes to transaction and chargeback fees.
- Cash reserve requirements: High-risk payment processors often require merchants to maintain cash reserves in case of chargebacks or fraud.
- Volume caps: Your payment processor might limit the number or monetary value of transactions you can process within a specific time.
- Policies: You might be subject to stricter security policies and procedures to maintain your smoke shop merchant account.
While it might sound inconvenient, the value of a high-risk merchant account is well worth it for smoke shop owners like you. Check out the benefits of securing high-risk payment processing:
- Expanded product selection: As a high-risk merchant, you can offer profitable but risky products like delta-8 and kratom to your shelves.
- More secure transactions: High-risk payment processing providers often take a more serious approach to security and fraud prevention.
- Better support: A reliable high-risk payment processing provider that offers 24/7 support will solve problems quickly and answer questions whenever they arise.
In short, high-risk payment processing does have some drawbacks, but it’s a must-have if you want to take risks, protect your store, and be the first in the neighborhood to offer trending products.
How To Get a High-Risk Smoke Shop Merchant Account
Ready to take the leap and apply for a smoke shop merchant account through a high-risk payment processor? Here are our top tips for finding the right provider:
- Rely on your smoke shop point of sale (POS) software provider. Instead of working with two separate vendors for your POS software and payment processing technology, we recommend partnering with one provider for more convenience and security.
- Choose a provider that specializes in smoke shops. Your payment processor should understand the ins and outs of the smoke shop industry and be able to provide you with tailored service.
- Prioritize customer service. Look for a POS and payment processing provider that offers 24/7 support at no additional cost. That way, you’ll be able to solve problems before they slow down your checkout lines.
To help you get started, we’ve rounded up this list of the top three high-risk payment providers for smoke shops.
1. PaymentCloud
PaymentCloud is a payment processing provider that specializes in serving high-risk merchants. With PaymentCloud, you can sell a wide range of “risky” products like CBD and delta-8 alongside traditional offerings like cigars and cigarettes.
This provider also lets you accept various payment types, including credit cards, debit cards, and mobile wallets, for extra convenience and security.
The main drawback to PaymentCloud is that they offer standalone payment processing, which means you’ll have to partner with another provider for POS software. However, this might be a good option if you want to stick with your current POS solution and only adopt a new payment processor.
2. KORONA POS
KORONA POS is a POS provider that caters to small retailers in all industries.
KORONA POS’ main strength is their all-in-one approach to meeting retailers’ needs. Their feature-rich POS software and flexible payment processing will help you run your smoke shop smoothly while seamlessly accepting payments.
The only downside to KORONA POS is that they don’t solely specialize in serving smoke shops. If you’re looking for smoke shop-specific offerings and tailored support, you might want to search for a provider that sticks to one industry.
3. Cigars POS
Cigars POS is the only option on our list to provide all-in-one POS and payment processing services specifically for smoke and vape shops.
Our powerful software includes all the features you need to manage inventory, track sales, and boost customer loyalty. Plus, our high-risk payment processing options unlock new opportunities to expand your product selection and customer base.
We also offer 24/7 customer support at no additional cost, so you can always get in touch with a smoke shop expert who’s committed to your business’ success.
Start Your Smoke Shop Merchant Account With Cigars POS
So, which provider should you trust with your smoke shop merchant account?
The answer is clear: Cigars POS offers integrated POS software and payment processing designed specifically for smoke shops. With Cigars POS, you can process transactions securely, simplify the checkout process, expand and track inventory, and grow your business.
Ready to start your Cigars POS journey? Schedule your personalized demo today.
