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The 7 Best E-Cigarette & Vape Merchant Accounts

Do you need a merchant account for your vaping or e-cigarette business? Keep reading to find out more about our top finds for the best processors to fit your high-risk business needs.

    Frank Kehl
  • UPDATED

Advertiser Disclosure: Our unbiased reviews and content are supported in part by affiliate partnerships, and we adhere to strict guidelines to preserve editorial integrity.

Finding the best merchant account for your e-cigarette/vape business can be challenging. For various reasons, most credit card processors won’t accept your business because of the products you sell. Instead, you’ll have to find a reputable high-risk provider that can accommodate you.

The best e-cigarette and vape merchant account providers offer fair contract terms, reasonable prices, and excellent customer support. They also provide specialized security features to prevent fraud and reduce the chances of chargebacks.

In this article, we’ll profile the best credit card processors that accept e-cigarette and vape merchants. We’ll also provide advice on features to look for when choosing the best provider for your business.

Why Do You Need A High-Risk Merchant Account For Vaping & E-Cigarettes?

As of June 2022, the FDA has officially banned the sale of Juul e-cigarettes in the US.

The worldwide market for e-cigarettes and vaping products has been booming in recent years. Countless businesses have begun to introduce their products to customers through both eCommerce shops and brick-and-mortar establishments, and there’s no sign that the growth in this industry is slowing down any time soon.

Despite the vape and e-cig market’s worldwide success, business owners in this industry often struggle to acquire merchant accounts for credit card processing because their products are considered high-risk.

The biggest factors that make e-cig and vape shops high risk are:

  • High Chargeback & Fraud Rates: Vape and e-cig shops, especially those that exclusively sell their products online, face the regular risk of customer-initiated chargebacks and fraud. Chargebacks are a risk that businesses face no matter what industry, but rates of chargebacks and fraud are particularly high in the vaping and e-cig market, as well as in related markets such as CBD and cannabis products.
  • Product Age Restrictions: According to the FDA, businesses that “sell e-liquids, pipes or cigars, but do NOT mix or prepare e-liquids, make or modify vaporizers, or mix loose tobacco” in their products are classified as retailers of tobacco products. If this verbiage applies to your e-cig or vape shop, you are legally obligated to only sell your products to customers who are over the age of 18. Additionally, you’re required to verify the photo ID of customers under the age of 27 who purchase your products. Adhering to these federal regulations can get even trickier if you operate a solely eCommerce-based business, a fact that contributes to the high-risk designation of companies in the e-cig and vape industry.
  • Selling Flavored E-Cigarette Products Is Illegal: In the past, some e-cigarette and vaping companies would sell cartridge-based e-cigarette products that were flavored to appeal to a younger market. These days, the FDA strictly forbids companies from manufacturing and distributing flavored cartridge-based e-cigarette products except for tobacco and menthol-flavored ones. The FDA can enforce severe penalties on companies that don’t abide by this stipulation, and this level of federal scrutiny contributes to the e-cigarette and vaping industry’s high-risk classification by credit card processors.
  • Political Issues: A large number of credit card processors and their sponsor banks consider e-cigarette and vape products a politicized issue. These entities frequently conclude that the political costs that e-cigarette and vaping companies pose to their business are too great to warrant the approval of a merchant account, even if an e-cig or vaping business is legitimate and abides by applicable federal regulations.

In general, the products that necessitate a specialized high-risk merchant account for your e-cig/vape shop include:

  • Electronic Vapes
  • Wooden Vapes
  • Vaporizer Juice
  • Rechargeable E-Cigarettes
  • Disposable E-Cigs
  • E-Liquid
  • Vape Batteries
  • Vape Pens
  • E-Juice
  • Vape Tank Systems
  • Pre-filled Vape Cartridges
  • Nicotine Salts
  • Vape Mods
  • Vape Coils
  • Vape Chargers
  • Vaporizer Box Mod Kits
  • Nicotine Salts
  • Vape Juice
  • Pod Vapes
  • Vape Cases

Learn More About Our Top Picks

CompanyBest ForNext StepsBest For
PaymentCloud

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  • Best for eCommerce-only vape shops
  • No cost to apply or set up account
  • "Free" credit card terminal may be available
  • Best for eCommerce-only vape shops
  • No cost to apply or set up account
  • "Free" credit card terminal may be available

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Corepay

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  • Best for rapid account approval
  • No application or setup fees
  • Offers Rapid Dispute Resolution (RDR) for enhanced chargeback protection
  • Best for rapid account approval
  • No application or setup fees
  • Offers Rapid Dispute Resolution (RDR) for enhanced chargeback protection

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Host Merchant Services

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  • Best for high-volume vape shops
  • No application or account setup fees
  • Website hosting included with each account
  • Best for high-volume vape shops
  • No application or account setup fees
  • Website hosting included with each account

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Soar Payments

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  • Best for quick account approval
  • Instant online quote to expedite account approval process; 3-5 business days for full approval
  • Offers wide range of hardware and software products
  • Best for quick account approval
  • Instant online quote to expedite account approval process; 3-5 business days for full approval
  • Offers wide range of hardware and software products

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Easy Pay Direct

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  • Best for load-balancing features
  • One-time $99 account setup fee
  • Offers load-balancing feature to accommodate high-volume sales
  • Best for load-balancing features
  • One-time $99 account setup fee
  • Offers load-balancing feature to accommodate high-volume sales

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PayKings

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  • Best for merchants processing a mix of in-person, overseas, and subscription-based payments
  • No application or account setup fees
  • Offers extensive support for international transactions
  • Best for merchants processing a mix of in-person, overseas, and subscription-based payments
  • No application or account setup fees
  • Offers extensive support for international transactions

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Durango Merchant Services

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  • Best for offshore merchant accounts
  • No application or account setup fees
  • Accepts merchants in the US, Canada, Panama, the UK, and most EU countries
  • Best for offshore merchant accounts
  • No application or account setup fees
  • Accepts merchants in the US, Canada, Panama, the UK, and most EU countries

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Read more below to learn why we chose these options.

Table of Contents

Best Merchant Accounts For E-Cig Stores & Vape Shops

While it can be difficult and frustrating to find a good merchant account for your e-cigarette/vape business, there are reputable, high-quality choices available. Among the dozens of high-risk providers on the market that accept e-cigarette/vape merchants, we selected the following companies for their honest sales practices, reasonable prices, and excellent customer support.

1. PaymentCloud: Best For eCommerce-Only Vape Shops

PaymentCloud


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Exclusive Promo: PaymentCloud will give you $200 if they can't beat your current rate. Get Your Quote

Pros

  • Free credit card terminal
  • Fraud and chargeback prevention
  • ACH and eCheck processing
  • Zero account setup fees

Cons

  • Pricing isn’t publicly disclosed
  • Zero monthly minimums for low-risk merchants only
  • PaymentCloud Features

Why We Chose PaymentCloud For eCigarette/Vape Processing

PaymentCloud is a great option for eCommerce-based e-cig and vape businesses that are looking for features that make it easier to create a seamless online shopping experience for customers. Complete check processing, fraud and chargeback prevention, and business funding are all must-haves for high-risk businesses that want to stay afloat for the long term, and PaymentCloud delivers on all of these fronts. Plus, PaymentCloud offers robust hands-on advocacy and guidance to merchants both during and after the onboarding process — they’ll even assign a dedicated account manager to you throughout the lifetime of your contract.

For retail merchants, the company now provides a “free” EMV-compliant credit card terminal with each account — it’s free so long as you return it if you close your account or switch providers. PaymentCloud enjoys a great online reputation, with our readers and merchants on other sites giving the company a positive endorsement. Low-risk providers such as Dharma Merchant Services and Stripe Payments routinely refer high-risk applicants to PaymentCloud.

PaymentCloud Pricing

  • No account setup fee
  • No monthly minimum (low-risk accounts)
  • Interchange + 0.05%-0.30% + $0.08-$0.10 per transaction (low-risk accounts)
  • Processing rates vary by the acquiring bank/back-end processor (high-risk accounts)
  • $15/month account fee (low-risk accounts)
  • Account fees vary by the acquiring bank/back-end processor (high-risk accounts)

PaymentCloud Features

PaymentCloud provides features with eCommerce-based businesses operating in high-risk industries in mind. Most notably, these include:

  • Fraud & Chargeback Prevention: PaymentCloud understands that high chargeback rates are a major concern in high-risk industries, which is why they provide advice on choosing a chargeback management service. They’ll also help you set up fraud mitigation services and walk you through customer support techniques to keep your customers happy.
  • eCheck & ACH Processing: PaymentCloud will set you up to process ACH and eCheck payment options so that you can accept and initiate direct deposits.
  • Business Funding Options: PaymentCloud offers business funding options for high-risk businesses, such as high-risk business loans that vary by term length, amount, interest, and repayment structure.
  • Shopping Cart Integration: PaymentCloud integrates with many online shopping carts for eCommerce merchants such as Shopify, BigCommerce, and 3DCart to create a more seamless online purchasing experience for customers.

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2. Corepay: Best For Rapid Account Approval

Corepay


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Pros

  • No application or account setup fees
  • No annual fees
  • Offers proprietary NetValve payment gateway
  • Accounts include extensive antifraud & chargeback protection features

Cons

  • Very few pricing disclosures

Why We Chose Corepay For eCigarette/Vape Processing

We chose Corepay as one of the relatively few high-risk specialists that not only accepts e-cigarette/vape merchants, but also provides extensive information about the unique factors that go into getting a merchant account in this industry. Corepay can usually place most e-cigarette/vape merchants, provided they only sell legal products and haven’t had a previous account terminated by another provider.

Corepay offers a full range of products and services for e-cigarette/vape merchants, with a particular emphasis on online and mail order/telephone order (MOTO) sales. Credit card and ACH processing are available, with rates for credit card transactions starting at 2.95%. Note that Corepay fully discloses that most high-risk merchants will pay processing rates that are significantly higher than what a comparable low-risk business would pay. The company is also mum about its contracts, so you can expect to have a long-term contract with an early termination fee, as well as a rolling reserve when the account is first established.

Corepay Pricing

  • No application or account setup fees
  • No annual fees
  • Variable monthly fees
  • Variable processing rates (starting at 2.95% for high-risk merchants)

Corepay Features

Corepay offers a variety of products and services for retail and online e-cigarette/vape merchants, including the following:

  • High-Risk Merchant Accounts: Corepay offers merchant accounts to both high and low-risk merchants, using a variety of backend processors. One unique feature is the availability of Mail Order/Telephone Order (MOTO)-only accounts for merchants who need them.
  • Processing Hardware: Corepay offers a variety of card readers, terminals, and point-of-sale (POS) systems. However, the company’s website currently does not feature information on specific devices.
  • Payment Gateway: Corepay’s proprietary NetValve gateway supports tokenization and smart BIN routing, and includes a number of antifraud features. Authorize.Net and NMI gateways are also available.
  • ACH Processing: Accepting ACH transfers is a good strategy for any high-risk business, as processing rates are much lower than they are for credit cards. Corepay offers ACH processing as an optional feature for online businesses.
  • Chargeback Protection: Corepay uses Ethoca and Verifi to protect your account from fraud and chargebacks. It also utilizes Visa’s Rapid Dispute Resolution (RDR), a new Verifi feature that allows merchants an additional opportunity to offer a refund before a chargeback is filed.

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3. Host Merchant Services: Best For High-Volume Vape Shops

Host Merchant Services


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Pros

  • Combined virtual terminal and integrated in-house gateway
  • Zero early termination, setup, or application fees
  • No monthly minimum fees

Cons

  • Interchange-plus pricing is the only rate structure offered
  • Potentially cost-prohibitive for very low-volume merchants

Why We Chose Host Merchant Services For eCigarette/Vape Processing

Although Host Merchant Services isn’t primarily a high-risk specialist, it does accommodate high-risk businesses and is an excellent choice to consider given its full range of products and services for both eCommerce and brick-and-mortar businesses. Merchants have the freedom to choose from multiple terminals for sale since HMS is philosophically against leasing equipment. If you process more than $20,000 each month in transactions, you may qualify for at least one free EMV card terminal. The company offers a variety of POS systems and its proprietary Transaction Express gateway, both of which are especially handy for e-cig and vaping merchants that may maintain online as well as physical shops.

All low-risk Host Merchant Services accounts come with month-to-month billing, but high-risk merchants may have to agree to a long-term contract, in some cases. One unique feature offered by HMS is that free web hosting is included with your merchant account, making it that much easier to get up and running for online sales.

Host Merchant Services Pricing

  • No application or setup fees
  • Variable account fees per customized quote
  • Variable processing rates per customized quote
  • $5-$10/month gateway fee
  • $15 chargeback fee
  • No PCI compliance fee

Host Merchant Services Features

Host Merchant Services offers a full range of features and services that work for just about any type of business, including high-risk industries like e-cigarette/vape shops. These most notably include:

  • eCommerce Payment Solutions: Host Merchant Services will guide merchants through the complete process of implementing an eCommerce payment solution. They offer payment gateway integration as well as assistance with payment security and PCI compliance. Their payment solutions also support major shopping carts such as Shopify, Magento, and WooCommerce, as well as all major payment gateways.
  • Combined Virtual Terminal & Integrated In-House Gateway: Host Merchant Services offers a combined virtual terminal and integrated in-house gateway called Transaction Express. HMS Transaction Express encrypts customer data and uses tokenization to keep customer payment information secure during online transactions. Transaction Express also supports ACH services as well as wireless processing and recurring billing, which many eCommerce businesses, including those in the e-cig and vaping industry, rely on. If you’d like to use an alternative gateway to Transaction Express, Host Merchant Services supports most other third-party gateways as well.
  • Up-To-Date Credit Card Terminals: For e-cig and vaping businesses that maintain brick-and-mortar operations, Host Merchant Services can hook you up with up-to-date credit card terminals. You may even qualify for at least one free EMV card terminal when you sign up with HMS, assuming you process more than $20,000 each month in credit/debit card transactions.
  • Mobile Processing: Host Merchant Services promotes Vital and SwipeSimple for mobile POS processing, and can attach both solutions to your mobile device. Vital and SwipeSimple also have associated apps that can be run on your mobile device anytime, anywhere.

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4. Soar Payments: Best For Quick Account Approval

Soar Payments


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Pros

  • Automated custom price quoting
  • Automated application process
  • Fast underwriting
  • Zero application fees

Cons

  • Only available for US-based businesses
  • Pricing is not disclosed on the company website

Why We Chose Soar Payments For eCigarette/Vape Processing

Soar Payments is a relatively new merchant account provider that specializes in finding card processing homes for hard-to-place businesses. Overall, Soar Payments offers competitive terms for high-risk merchants and provides POS, mobile payment, terminal, and eCommerce solutions for high-risk merchants. Additionally, Soar partners with Chargeback.com to give high-risk merchants a leg up when it comes to handling disputed payments. Soar’s automated custom pricing quote, as well as its fast underwriting process, also provide for a relatively stress-free merchant account application process for high-risk merchants who’ve struggled in the past to find a processor that will work with them.

Soar Payments uses a quote-based pricing system and doesn’t disclose its fees or rates online, so expect a rolling reserve and a monthly minimum when you sign on for a high-risk merchant account. Soar’s standard contracts include an initial two-year term that automatically renews for one-year periods afterward. Soar also imposes a $495 early termination fee, but only during the first two years of a contract’s lifetime.

Soar Payments Pricing

  • Variable processing rates for high-risk accounts (tiered pricing usually used)
  • Variable account fees for high-risk merchants
  • Usually includes a monthly minimum
  • A long-term contract and an early termination fee may apply

Soar Payments Features

If you need a feature-rich, high-risk merchant account provider, Soar Payments may be perfect for you. Notable features include the following:

  • Multiple Payment Gateways: Soar Payments mainly focuses on eCommerce-based businesses and offers multiple options for payment gateways. These include the Authorize.Net and USAePay gateways, as well as the NMI gateway which integrates with most major online shopping carts. To sweeten the deal, NMI also integrates with Chargeback Armor, which is an automated chargeback prevention and response program that is a big plus for merchants in high-risk industries.
  • Wide Range Of Essential Hardware: Soar Payments offers POS systems, mobile payment processors, and credit card terminals in addition to eCommerce solutions for high-risk merchants who are in search of an account provider.
  • Large Network Of Partner Banks & Processors: Soar Payments maintains a network of about a dozen banks and payment processors in order to place high-risk merchants. Soar also uses this large network to offer high-risk merchants offshore accounts in case they process payments from customers overseas.

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5. Easy Pay Direct: Best For Load-Balancing Features

Easy Pay Direct


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Pros

  • Load-balancing feature for high-volume, high-risk merchants
  • No early termination fees for most merchants
  • Free gateways and virtual terminals

Cons

  • $99 account setup fee
  • Few pricing details are disclosed online

Why We Chose Easy Pay Direct For eCigarette/Vape Processing

Easy Pay Direct offers its proprietary EPD Gateway as its primary product and provides full-service merchant accounts for both low-risk and high-risk merchants. Easy Pay Direct also offers load-balancing, which is particularly helpful for high-risk merchants that often exceed the underwriting processor’s monthly processing volume limits. The load-balancing option and the robust features of Easy Pay Direct’s EPD Gateway make it an excellent option for high-volume businesses with an online sales channel.

Easy Pay Direct doesn’t disclose its contract terms online, but most contracts appear to last for three years. Contract length likely depends on which back-end processor you’re set up with, and your contract will likely include an automatic renewal clause for additional one-year periods. Easy Pay Direct doesn’t charge an early termination fee for most merchants, although closing your account without being penalized can still be challenging — follow the instructions for closing your account to the letter before doing this. The company primarily charges processing rates under a tiered pricing plan and imposes a relatively expensive $99 account setup fee.

Easy Pay Direct Pricing

  • $99 account setup fee
  • $24.95 monthly account maintenance fee
  • Variable processing rates (tiered and interchange-plus pricing used)
  • Variable additional monthly and annual fees
  • A long-term contract may apply
  • No early termination fee (except for offshore accounts)

Easy Pay Direct Features

Easy Pay Direct includes a popular load-balancing feature that is useful for both low-risk and high-risk merchants that tend to exceed their processor’s monthly processing volume limits. Here are Easy Pay’s primary features:

  • EPD Gateway: Easy Pay Direct’s in-house gateway lets merchants process credit/debit card transactions, ACH payments, and online payments. The gateway uses a customer vault for the secure storage of sensitive customer payment data, and it meets Level I security standards for PCI compliance. The EPD Gateway also includes a free virtual terminal that allows merchants to easily process mail order and telephone order transactions.
  • Clover Mini & Clover Station POS Systems: Easy Pay Direct offers the Clover Mini and Clover Station POS systems thanks to its partnership with Fiserv. Clover Mini and Clover Station both include built-in EMV and NFC capabilities and allow merchants to access the Clover App Market, which lets merchants add analytics and gift card apps to their Clover systems.
  • Shopping Cart Integration: Easy Pay Direct offers its proprietary Quick-Click shopping cart, which is built directly into its EPD Gateway. Although the Quick-Click shopping cart is pretty basic, the EPD gateway is compatible with 134 shopping carts (including Shopify) and includes an emulator mode for Authorize.Net for merchants who want to use it with a shopping cart that isn’t certified as compatible.
  • Business Loans & Merchant Cash Advances: Easy Pay Direct works with a network of 20 third-party lenders to offer merchant cash advances and business loans. Merchants can borrow up to $500,000 in loans with repayment terms that range from 6-18 months for merchant cash advances and 6-36 months for standard business loans.
  • Load-Balancing: A unique feature that Easy Pay Direct offers is its load-balancing, which allows a single merchant to access multiple merchant accounts. Merchants can indicate the percentage of their sales that they’d like to go to each account. This redundancy means that payments can be automatically redirected to a different account if one of your merchant accounts has a hold placed on it.

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6. PayKings: Best For International Transaction Support

PayKings


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Pros

  • eCheck processing options
  • Zero application and setup fees
  • Options for multicurrency

Cons

  • Untransparent tiered pricing
  • Early termination fees

Why We Chose PayKings For eCigarette/Vape Processing

PayKings provides multiple payment solutions, including multiple eCommerce gateways, ACH and credit/debit card processing, and mobile payment solutions that make a lot of sense for e-cig and vape companies that largely do business online. The company also offers recurring billing, international processing, and POS systems and terminals for businesses that may predicate some of their operations on in-person, overseas, or subscription-based payments.

High-risk merchant account providers usually require a long-term contract, and depending on the bank PayKings pairs you with for your merchant account, that contract could last for two to three years. PayKings also imposes an early termination fee for breaking your contract, which varies by your bank. PayKings does not set this number itself, but early termination fees usually fall between $300 and $500.

PayKings Pricing

  • No application or account setup fees
  • Variable monthly account fees (depends on backend processor)
  • Variable processing rates (depends on backend processor)
  • Long-term contracts may include an early termination fee

PayKings Features

PayKings is relatively unique in that it provides international processing and multicurrency options in addition to robust payment processing solutions. PayKings’ most notable features include:

  • High-Risk Payment Gateway: PayKings lets merchants choose between Authorize.Net and NMI for their payment gateway services. Payment gateways are a must-have if you process eCommerce transactions, and they offer a variety of security and customer management-related perks. Authorize.Net, in particular, is a solid payment gateway option considering it comes packaged as a bundled deal with your merchant services.
  • ACH Processing: ACH payments, while slow, are cheaper than credit card transactions, and they’re a common way for merchants to set up recurring payments if they offer subscriptions or memberships.
  • International Processing & Multicurrency: PayKings can set you up with an offshore merchant account, which is relatively common when it comes to high-risk payment processing. Additionally, gateways like Authorize.Net, which is compatible with PayKings, offer multicurrency support via currency conversion to let merchants accept payments from across the globe.

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7. Durango Merchant Services: Best For Offshore Accounts

Durango Merchant Services


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Pros

  • Fair pricing and excellent contract terms
  • Dedicated account manager for customer support
  • Offshore accounts for international merchants

Cons

  • No publicly disclosed pricing

Why We Chose Durango Merchant Services For eCigarette/Vape Processing

Durango’s full array of features is perfect for both U.S.-based and international merchants who want to provide multiple payment processing solutions to their customers. Innovative products and services like the Durango Pay™ Gateway and support for currency conversion and multicurrency accounts make it viable for merchants to securely process multiple types of customer payments, no matter where they’re located. Additionally, Durango makes a name for itself as a high-risk specialist by offering fair pricing when it could easily charge inflated prices instead.

Durango doesn’t disclose its pricing or contract terms, mainly because it works with more than a dozen banks and processors to place merchant accounts. Subsequently, your contract terms will vary widely among them, and the same factors that influence the processing rates and account fees you’ll pay also impact the terms of your contract. Durango offers nearly all of its merchants a month-to-month contract with no early termination fee, although most high-risk merchants will have to agree to an industry-standard contract instead. This contract will usually have a three-year initial term with an automatic renewal clause for one-year periods after that, and it will most likely include an ETF of up to $500 if you close your account early.

Durango Merchant Services Pricing

  • Highly variable processing rates
  • Highly variable account fees
  • A long-term contract and an early termination fee may apply

Durango Merchant Services Features

Durango offers a full range of products and services for e-cigarette and vape merchants, including the following:

  • Durango Pay™ Gateway: Durango’s proprietary payment gateway includes a robust set of features that includes support for recurring billing, a customer information vault to house sensitive payment information, and a gateway emulator that allows merchants to easily switch over to alternative, third-party gateways. Durango Pay™ Gateway also comes with a virtual terminal that lets merchants process card transactions on any computer that is connected to the internet with an optional card reader. Unique to this proprietary gateway is the fact that it’s hosted on the Google Cloud Platform, so merchants shouldn’t often need to worry about system downtime.
  • International Merchant Accounts: If you’re an international merchant conducting business in the U.S., then Durango has you covered. Durango is a registered ISO in Europe and offers international merchant accounts that include support for currency conversion and multicurrency accounts. These international accounts are available to merchants in Canada, Panama, the United Kingdom, and most countries in the EU.
  • Mobile Payments: Durango uses the iProcess app and an encrypted EMV-compliant mobile card reader to provide merchants with a mobile payment processing solution. The mobile card reader can connect via Bluetooth and is compatible with newer devices that don’t include headphone jacks.
  • Fraud Protection Services: As you know by now, fraud protection should be high on the list of priorities for high-risk merchants. All Durango merchant accounts come with anti-fraud services, including EMV 3d Secure 2.0 and iSPY.

Get Started With Durango Merchant Services

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Our Methodology For Choosing The Best E-Cigarette & Vape Merchant Accounts

Although there are dozens of high-risk providers that accept e-cigarette/vape merchants, we only chose those companies that offered the best overall combination of fair prices, reasonable contract terms, high-quality customer support, and a broad range of products and services. However, our selection criteria are necessarily different than they are for choosing the best low-risk providers due to the realities of the high-risk credit card processing industry. Please be aware of the following significant differences between high-risk and low-risk merchant accounts:

  • Application & account setup fees: While these fees have largely been eliminated for low-risk businesses, you can expect to have to pay them as an e-cigarette/vape merchant due to the more extensive underwriting process required to get your account approved. Note that some of our top choices listed above do not charge these fees, even for high-risk clients.
  • Contract terms: Month-to-month billing with no long-term contracts or early termination fees has now become the industry standard for low-risk providers. However, as a high-risk merchant, you’ll often have to accept a long-term contract in order to get your account approved due to the higher level of risk involved with selling certain kinds of products.
  • Pricing: Very few high-risk providers offer the kind of transparent, fully disclosed pricing structures that you’ll find with most high-quality low-risk providers. Instead, you’ll have to obtain a customized pricing quote tailored to your business. In addition to higher monthly fees, you should also expect to pay processing rates that are nearly twice as expensive as what a comparable low-risk business would pay.

Can You Use PayPal, Square, Or Stripe For Your Vaping Payment Processor?

With no monthly fees, fully disclosed pricing, and an easy online sign-up process, payment service providers (PSPs) like PayPal, Square, and Stripe appear to be excellent choices for any small business looking to accept credit cards. Unfortunately, that’s not the case. These companies all have acceptable use policies that restrict (or even prohibit) the use of their services to sell certain products or services. Because these policies aren’t clearly advertised, it’s easy to sign up for an account — only to have it suddenly shut down as soon as you start accepting transactions.

Here’s a brief overview of each provider’s policies toward e-cigarette and vape products:

  • PayPal requires pre-approval for the sale of non-cigarette tobacco products, e-cigarettes, and cigars. You’ll need to contact the company directly to obtain pre-approval prior to signing up for an account and selling these products.
  • Square prohibits all internet, mail order, and telephone order sales of any age-restricted products, including tobacco. In-person sales of these products appear to be authorized, but we recommend contacting the company directly instead of using the online signup process. Also, note that Square has a special program for CBD merchants.
  • Stripe restricts the sale of tobacco products, including e-cigarettes and e-liquid. However, some merchants may be able to sell these products with prior approval from the company. Again, it’s best to contact the company directly rather than using the online signup process.

Given the headaches involved and the risk of having your account shut down, we don’t recommend using these companies for e-cigarette or vape sales in most cases.

3 Things To Look For In E-Cigarette Credit Card Processing

Although there are perhaps dozens of things to look for in an e-cigarette and vaping credit card processor, we feel that the following three factors are most important for you to consider:

  1. Support For Online & In-Person Sales: Whether you offer your products largely online or in person, you need to create a seamless purchasing experience for your customers. Your merchant account provider should ideally provide support for the necessary hardware and software you may need, including payment gateways, virtual terminals, credit card terminals, and POS systems, and options for mobile device processing that come with support apps. Plus, it doesn’t hurt to pair up with a merchant account provider that offers dedicated support to help you get your necessary hardware and software up and running quickly and without setup-related headaches. (Learn more about how to sell vape products online and in person.)
  2. Support For Multiple Payment Types: Even if you only maintain an online or physical store, chances are good that your customers will want to complete their transactions using a variety of payment methods. Your merchant account provider should offer support for multiple payment types, including credit/debit cards, ACH transfers, and eChecks. You may also want to consider whether a merchant account provider supports recurring billing if you rely on subscription-based payment models, as well.
  3. Business Funding Options: As a high-risk business, you may require some business funding to get your new operation off the ground. Certain merchant account providers that specialize in high-risk industries offer a variety of business loans and funding options depending on the size of your business as well as the volume of transactions you process every month. Check with the merchant account providers you’re considering working with about their business funding options that can help your business stay afloat if you’re worried about the stability of your revenue streams.

How To Get Your Vape Merchant Account Approved

Now that you’ve narrowed down your list of potential merchant accounts for your e-cig/vape shop, we recommend that you understand the criteria you need to meet to be approved for a merchant account:

  • Provide Proof Of Your Financial History: You’ll have a much easier time getting approved for a merchant account if you can furnish a solid track record of your financial history. Even if your financial history is spotless, you should still take care to establish a satisfactory financial track record with a high-risk processor to demonstrate that you can process payments and maintain growth via predictable and reliable card and electronic transactions.
  • Explain Previous Chargebacks: An explanation of your previous chargebacks can make you appear more transparent, which goes a long way for high-risk merchants such as those in the e-cig and vaping industry. Increase your chances of getting approved for a merchant account by furnishing an explanation of your previous customer-initiated chargebacks as well as proof of having successfully processed a steady rate of online customer transactions.
  • Follow FDA Rules & Regulations: As a vendor of e-cigarette and vaping products, you need to abide by FDA rules and regulations that pertain to your industry. Ensure that you only sell vaporizer products that work with e-juices, and make sure you aren’t selling any products that customers can use with flowering plants such as cannabis. Speaking of which, you should double-check that you aren’t displaying any imagery that can be associated with cannabis products either in-store or online.

Be Aware Of Legal & FDA Requirements For Vape & E-Cigarette Stores

On the topic of following FDA rules and regulations, there are a few more important points we want to cover specifically in this section. FDA regulations apply to any device you sell that uses vape liquids, as these devices are considered electronic nicotine delivery systems (ENDS). However, regulations also apply to liquids and accessories that you may sell, as well.

Specifically, you may only sell the ENDS you offer to persons who are over the age of 18, and you must check the photo ID of all customers to whom you’re selling if they appear to be under 27 years of age. Additionally, your business is prohibited from giving out free samples and from selling your ENDS in vending machines in almost all cases. You’re also required to sell your ENDS only if they include health warning statements that are clearly displayed on their packaging. Keep in mind that state laws may apply, so check with your attorney for more accurate information pertaining to the area in which you do business.

Which Vape Shop Merchant Account Is Right For Your Business?

An e-cigarette and vape merchant account can provide your business the flexibility and financial security it needs to create a seamless buying experience for your customers both online and in person. Your goal when choosing a merchant account should be to provide intuitive payment processing solutions that meet your business’s needs.

Do you need to tackle a high volume of sales with high-capacity processing? Maybe you’re interested in alternative payment methods like ACH payments to provide added flexibility to your customers, or maybe you just want quality customer support that’s dedicated to getting you set up quickly with your hardware and software solutions. Whatever your needs, it’s important that you choose an e-cigarette and vaping merchant account that lets you experience continued growth.

FAQs: E-Cigarette & Vape Merchant Accounts

Why should I accept credit cards in my vape shop?

Credit and debit cards are among the most popular payment methods with consumers today, and most of your customers will expect to be able to complete a purchase using either a credit or debit card. Studies have consistently shown that businesses experience higher sales when they accept credit or debit cards. For most merchants, the increase in overall sales will more than compensate for the expense of maintaining a merchant account and purchasing processing equipment.

Can I use Square or PayPal in my vape shop?

Square, PayPal, and other payment service providers impose many restrictions on what types of businesses they accept and what kind of products or services can be sold using their platforms. Nonetheless, it is possible in some cases to use Square or PayPal to sell e-cigarette and vape products, but only if prior approval is obtained. Note that Square only allows in-person sales of any age-restricted products, including tobacco.

Why is a vape shop considered to be high-risk?

The primary reason that e-cigarette and vape shops are considered high-risk is that their industry experiences an unusually high chargeback rate. However, age restrictions and complex legal requirements also come into play. Finally, some providers see e-cigarette and vape shops as being politically controversial and do not wish to risk harm to their business reputations by doing business with them.

Do I need an offshore merchant account for my vape shop?

Most domestic e-cigarette/vape merchants will not require an offshore merchant account. However, if you experience particular difficulty in getting approved for a merchant account, you may need to get an offshore account. Companies located overseas that sell primarily to US customers may also require an offshore account.

In Summary: Best Merchant Accounts For E-Cig Stores & Vape Shops

  1. PaymentCloud:
    • Best for eCommerce-only vape shops
    • No cost to apply or set up account
    • "Free" credit card terminal may be available
  2. Corepay:
    • Best for rapid account approval
    • No application or setup fees
    • Offers Rapid Dispute Resolution (RDR) for enhanced chargeback protection
  3. Host Merchant Services:
    • Best for high-volume vape shops
    • No application or account setup fees
    • Website hosting included with each account
  4. Soar Payments:
    • Best for quick account approval
    • Instant online quote to expedite account approval process; 3-5 business days for full approval
    • Offers wide range of hardware and software products
  5. Easy Pay Direct:
    • Best for load-balancing features
    • One-time $99 account setup fee
    • Offers load-balancing feature to accommodate high-volume sales
  6. PayKings:
    • Best for merchants processing a mix of in-person, overseas, and subscription-based payments
    • No application or account setup fees
    • Offers extensive support for international transactions
  7. Durango Merchant Services:
    • Best for offshore merchant accounts
    • No application or account setup fees
    • Accepts merchants in the US, Canada, Panama, the UK, and most EU countries
Frank Kehl

Frank Kehl

Senior Staff Writer at Merchant Maverick
Frank has been writing about payment processing and business services since 2015. He is a retired Air Force officer and a former practicing attorney. He has a Bachelor of Science degree in Psychology from The Pennsylvania State University and a Juris Doctorate degree from the Ventura College of Law, and currently resides in Paso Robles, California.
Frank Kehl
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