First Data Merchant services Discontinuing online vaporizer sales

[Iken]

Basically the head line says it all. We received an email paired with a phonecall from FirstData that they will be terminating Ikenvape from online sales though face-to-face sales are allowed. Ecigarettes,components, and acessories are now known as unallowed items for online retail. Hopefully this is only a "First Data' issue and not alternatives.
We are not in a position to acquire a store, though I do have a reserve account with another processor to fall back on. However I have to check with them to if this issue is wide spread. Below states Visa/Mastercard so we're going to have to go with wishful thinking.
Isaac

Please be informed that effective fifteen days from the above date the merchant processing agreement
between First Data Merchant Services and Ikenvape established by the contract dated 01/23/2013 will
be terminated due. We will no longer purchase any sales drafts representing MasterCard/Visa sales.
You must remove all displays, decals and other materials that indicate acceptance of Mastercard/Visa
sales to your customers.
Consistent with the terms of the Agreement, we may established a Termination Reserve Account. Additionally,
any batches processed going forward will also be held in reserve. These funds will be held for
the greater of six months or longer as is consistent with the MasterCard and Visa Rules and Regulations.
The funds will be used to fund potential chargebacks. If, in the allotted time frame, there are no
chargebacks we will return the funds less cancellation & investigative fees.

 

[5cardstud]

Removed by me.

 

[Switched]

This sucks buffalo balls big time. Not sure who owns "fleebay" but sales of ecigs are prohibited there. Folks doing have yet to be caught. FWIW (and we have discussed this before Isaac) Phillip Morris owns Visa and MasterCard.

 

[5cardstud]

Removed by me.

 

[Switched]

Nope! Google, FB etc... The tentacles are far reaching

 

[MamaTried]

I noticed ebay is selling ecigs and using paypal as the payment source. I don't know if they're coming around or it's just something they let ebay get away with.

i think ebay bans e-cigs too, although a lot of stuff sneaks thru their screens.

i've bought some stuff there, but i've also received several emails from ebay for stuff i thought i "won" but they canceled due to it being unallowed.

same thing with amazon

 

[Iken]

I noticed ebay is selling ecigs and using paypal as the payment source. I don't know if they're coming around or it's just something they let ebay get away with.

They're not allowed to do that my friend. I'll call them in the morning to confirm. That would be wondrous if they did though! Thank you.

This sucks buffalo balls big time. Not sure who owns "fleebay" but sales of ecigs are prohibited there. Folks doing have yet to be caught. FWIW (and we have discussed this before Isaac) Phillip Morris owns Visa and MasterCard.

I don't think so Switcher, Places like Visa and Mastercard are publicly owned meaning shareholders which are based off Banks and financial institutions like JP Morgan. When decisions need to be made in terms of changing assessment fees or other details of the way business is run, the shareholders are the ones that have the final say.

 

[Iken]

i think ebay bans e-cigs too, although a lot of stuff sneaks thru their screens.

i've bought some stuff there, but i've also received several emails from ebay for stuff i thought i "won" but they canceled due to it being unallowed.

same thing with amazon

You are absoultely correct Dwallen.
These are people who are passing by with luck.

PayPal generally prohibits transactions for all types of tobacco products, including cigarettes, cigars, and smokeless tobacco due to legal requirements and industry regulations for online tobacco sales."
Any merchant selling these products and offering PP is either doing so without PP's knowledge or with written permission. That permission can be revoked by PP at any time, for any reason, without explanation, and without recourse by the merchant.

Given PP's documented position on tobacco products, I'm surprised that anyone has been able to use PP to buy them at any point. Although there is certain measures we take for selected customers.

 

[snork]

They're not allowed to do that my friend. I'll call them in the morning to confirm. That would be wondrous if they did though! Thank you.


I don't think so Switcher, Places like Visa and Mastercard are publicly owned meaning shareholders which are based off Banks and financial institutions like JP Morgan. When decisions need to be made in terms of changing assessment fees or other details of the way business is run, the shareholders are the ones that have the final say.

Then they're fools. The legitimate money to be made as this industry continues to grow surely dwarfs the risks.

 

[5cardstud]

Removed by me.

 

[T1lVl]

This is dumb. It is another way for the government to control our lives.

Sent from my SGH-T999 using Tapatalk 2

 

[Iken]

Then they're fools. The legitimate money to be made as this industry continues to grow surely dwarfs the risks.

Oh yes, but again even with vasts amounts you can't really buy cigarettes online.

That's what I was reading and they it said the charge backs are not in line with Visa and Mastercards limits. It went on to say more and that wasn't the only reason. So now what?

Oh definitely not from chargebacks J5, they actually praised how squeaky cleaned our profile is
The ultimate kick in the .... was, that the person who relayed the email they received form underwriting of termination told me that she's going over to her neighbors house to learn about e-cigs!!
This just in from my reserve account.

Glad to hear from you. I actually noticed your account wasn’t processing on my last report and was planning to reach out. Everything is good with your Redwood Account. First Data has always prohibited on-line E-Cig sales so that’s nothing new. I assume someone offered you a better rate, that’s why you switched but they achieved it by misrepresenting your products to underwriting and now that your account has truly been underwritten they’re getting it off the books. The sales rep who set that account up should’ve known better

 

[Iken]

This is dumb. It is another way for the government to control our lives.

Sent from my SGH-T999 using Tapatalk 2

You can imagine how many lobbyists are there in the name of Big T trying to ban online sales of e-cigs since they finally realize it's growth. Sooner or later e-shops of these products will be a thing of the past. We all know it's coming.

 

[doots]

I think more merchant processors will follow suit soon to stop the sale of online sales for ecigs. It is disasterous to say the least. At least you will probably find their fees are going to be very high per transaction fees because of chargebacks.. Yes the low lifes and hackers are probably to blame for all of this, besides other biases.

We might have to resort to money orders or checks thru snail mail.

I know there was a large gateway that refuses ecig sales like last year.. Good luck Issac on finding someone..

 

[5cardstud]

Removed by me.

 

[5cardstud]

Removed by me.

 

[T1lVl]

They don't want a bunch of unpredictable vapors going crazy from ejuice, puff clouds, RbA withdrawals. That is enough to cause ww3

Sent from my SGH-T999 using Tapatalk 2

 

[bizarmour]

Hey Iken! We actually process payments online for ECig Merchants. I am a Certified Payments Professional and I've worked with ECig clients for years. Feel free to message me anyone if your looking for a consultation on the best most effective way to process. Cheers

 

[bizarmour]

Oh and I use the EGO new to vaping. Loooove it!

 

[bizarmour]

And just some good for thought. It's the backing banks that do not want to be associated with high risk clients. FD is a very reputable company but notice sales organizations for FD say ISO/MSP of Wells Fargo Bank. Also ECig merchants are higher risk because some purchase product from China etc (not that a lot don't) but a clear return policy helps. If mods or something is defective it's best to replace and keep the customer happy. Avoids chargebacks. Also always get a signature, if its suspicious I tell my clients to take front and back picture of card with ID before shipping. Signed Sales Receipts.

Keep the community strong just like anything money is the root of all evil and vaping is taking off, I'm impressed by how many smokers have quit. Oh big tobacco...won't even go there LOL