Cigar and Tobacco Processing
In order to begin selling tobacco online, you will need to secure a payment gateway. To do that, you should find a high risk payment processor supportive of the cigars and tobacco industry. It’s not unusual for many businesses in this space to forego the ability to accept credit cards, but that shouldn’t have to be the case. Open up your business to multiple payment options by securing a tobacco merchant account and reap the benefits.
Tobacco Processing: A Thriving Industry
Before delving deeper into the tobacco industry, it is best to start by defining what certain tobacco products are. A cigarette is made of finely cut leaves of tobacco placed in a thin rolled paper used for smoking. Meanwhile, cigars typically use whole-leaf tobacco wrapped in tobacco leaves.
Despite what the media may imply, tobacco products are still selling extremely well. Each year, billions of tobacco products are sold in the US alone. In fact, almost 250 billion cigarettes were sold across the country in 2017. Meanwhile, almost 12 billion cigars were sold in 2015—11.9 billion of those were large cigars and the rest cigarillos.
The tobacco industry remains one of the most profitable industries in the US and the whole world. With those numbers, it's no wonder so many people seek a cigar and tobacco merchant account.
How To Benefit from a Tobacco Payment Processor
Over the last few decades, governing bodies and health professionals have bolstered their efforts to prevent the use of tobacco. It is not easy to run a business selling cigars online unless you have a tobacco credit card processor.
Selling tobacco online, including cigar and cigarette products, is not illegal. No federal law bans online sales of these items. However, there are loose rules that try to regulate online sales of tobacco in the online world. For this reason, tier one banks often feel unprotected when working with these businesses.
Looking for a traditional merchant account for businesses in the tobacco industry can be quite frustrating. Declines, shutdowns, and overall dissatisfaction are common with businesses starting up in this sector. The only way to properly accept credit cards online or in your store is with a high risk tobacco merchant account.
With a high risk processor supporting you, your business receives a supportive bank partner and risk mitigation procedures to combat fraud. Credit card processing is necessary to the growth and development of your business. Why not do it right the first time and find a provider that wants your business to thrive?