Merchant Account for SMOKE SHOPS / GLASS PIPEs / Head Shops / Bongs / Hookahs / Dab
Are you a small business that has been disappointed by the banks not giving you money or canceling the payment suddenly because you cater to Smoke shops? Are you disappointed by the services and rates offered by the bigger payment providers because they consider your business as risky due to your clients being Head shops? The big banks and financial companies do not like to finance the small companies that are in the business of smoke/ Head shops or hookahs as these are considered risky business prepositions.
Virtual options through apps
These services can be used on Virtual terminals that are customized for all kinds of apps- Android-based or iPhone based. These are convenient and secure, enhancing your profitability and popularity online. Small businesses need more money to establish in the highly competitive business arena. Even rolling reserve is a drain on the company finances. A risk management system that waives off the requirement of rolling reserves or minimum reserve can help to have more money at disposal. Therefore, the requirement of keeping rolling reserve as security is not needed anymore. This way you can use the money to improve the business. Your customers will have the option of paying using any of the popular cards like Visa, Master, AmEx or Discover etc. You should have the facility of the services for the drafting of checks and Automated Clearing House (ACH) system to facilitate quick payments. This way you will never be inconvenienced due to lack of funds.
You can see that you can get assistance even if you have a history of being denied credit or are not a domestic client. You require efficient facilities through friendly customer service and set a virtual terminal that will be compatible with all kinds of payment gateways. Compare the services available online and choose the best possible solution for your merchant account requirements.
These business ventures are considered risky
The business of smoke shops and similar ones have online stores and have clients from all over the world buying products online. The business of head shops and Hookahs may be considered risky and may not be provided merchant accounts due to many reasons-
Some of the traditional and well-established companies do not consider the business of smoke shops and similar ones trustworthy or respectable enough.
They feel that the customers of such Head shops or Hookah Bars may not be using legitimate money to pay their dues and these are some kind of shady dealings.
Banks also decline merchant accounts to such businesses due to more chargebacks from the customers.
These businesses have many customers who register for recurring payments online. But they may request cancellation at any time and ask for chargebacks due to miscalculations.
They pay through credit cards and online transactions that may be payments done when the card is not present.
These payments are automatic debits mandated by the customers for recurring payments and may not have their signature every time a payment is made.
These are some of the reasons that the banks may decline a merchant account or even shut down suddenly after the account sees more chargebacks than they accept.
You need access to money but traditional banks may deny credit
You are in a business and that needs constant movement and rotation of money to survive in the market. You need a company that believes in the principle of treating all the customers and the kind of businesses that they are doing as equal; as long as you have a registered business then you need completely hassle-free services.
Today all the businesses prefer to follow the e-commerce model and the majority of their transactions are online. You need Virtual Terminals that can take care of multiple payments at the same time. All kinds of payment gateways, including the major cards and online payment systems are supported by us. This allows greater freedom to the customers and they can make payments using any of the available ones that they have. Even if your business has been denied support by the major credit companies- like PayPal, Swipe, and others, then you need to search for a solution to set up the merchant account. Even if these merchant services consider your business risky as people often try to get a Chargeback and the products could be considered risky in some countries, but as long as you have an established business, you need all the services. Some customers pay small amounts and are regular customers and may lead to regular recurrent billings and you need to take care of cyclical payments without any hassle.
Multiple underwriters
Sometimes banks just shut off credits even if there is a small delay in the payment by the business. This can be avoided with the use of many small financial institutions for underwriting so that your payments are never stopped. The customers who make online payments for buying products from you may not present the card physically. These transactions do not need their signatures either. These two reasons make some bank to stop the credit facilities to online businesses. It will be helpful as there are many underwriters and the payment gateways will always function smoothly.
Domestic and Offshore accounts:
You need a smoke shop friendly merchant service provider. The rates may vary depending on the history of your business, as any long-standing business has verifiable credentials that can be verified and you need assistance even if you are a newly established venture. Being categorized as a high-risk business will affect monetary availability and your profits. You need flexible and efficient payment processing systems suitable for all your requirements.
There is no point in going to big banks who may decline straightaway or charge you exorbitant fees being high-risk businesses. You need to choose a solution where the application and set up fee are waived off to help the customers. The rates for domestic companies may be slightly less as they follow all the norms of the government here and banks can follow them easily but you may need an offshore company set up also. This is required as the online business in smoke shops and head shops may have clients all over the world. The bank may charge a little more from a merchant account for businesses registered offshore, but it will be worth the money as it will help you cater to the customers all over the world.