For a number of months I have been putting together my own e cig on line business. I believe in this product and it's future. I bought supplies, licenses, hired a web designer, accountant and all the necessities for my new endeavor. Much to my surprise, when I went to get credit card processing I was turned down by every avenue I tried. I explored banks, credit unions, and even ads on this forum stating they can get anyone processing and then either failing or not getting back in touch with me. I tried contacting existing owners but they would not give out much information as well. I don't know if you have to belong to some elite club, but I see new companies popping up all the time. I am not a professional business persona, only someone who wanted to make a difference and create a modest living. I hope this thread is useful to anyone considering doing what I did. Any suggestions would be appreciated.
For what it's worth
- Thread starter Pacer
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I am currently in the same boat as you. Did you check out painlessprocessing.com? They actually have a thread here promoting their business. Although I do not have actual experience using them, I did give them a call prior to ordering all my products and setting up my site. As far as they told me, they do allow ecig sales and processing. I have yet to confirm it as I just started this week but try and give them a call and let us (as in me lol) know how it goes.
From what I've learned this past year it's all a really big mess.
First, PayPal (and a few others) decided to exclude ecigs from their service. More recently, Visa and MasterCard did the same. I'm assuming big tobacco was behind this move, though some rumors state otherwise. One rumor stated these credit card companies were planning a sale of their business or at least a part of the business. In order to put on their best face they prepared a list of product categories which had an unusual amount of returns and chargebacks. Ecigs got put on the list.
This is because of the shady companies selling ecigs in malls and on TV that overcharge and setup monthly billings on customer's cards. The monthly billings are for supplies. This prompted many complaints and chargebacks. So now we're on the list.
Merchant account providers check the list before the setup new accounts. So if you're selling porn, ecigs, etc. you'll find yourself out of luck because you are on the list. Of course, knowing the reason why doesn't really help your situation.
You're looking for a solution and they're few and far between.
First, PayPal (and a few others) decided to exclude ecigs from their service. More recently, Visa and MasterCard did the same. I'm assuming big tobacco was behind this move, though some rumors state otherwise. One rumor stated these credit card companies were planning a sale of their business or at least a part of the business. In order to put on their best face they prepared a list of product categories which had an unusual amount of returns and chargebacks. Ecigs got put on the list.
This is because of the shady companies selling ecigs in malls and on TV that overcharge and setup monthly billings on customer's cards. The monthly billings are for supplies. This prompted many complaints and chargebacks. So now we're on the list.
Merchant account providers check the list before the setup new accounts. So if you're selling porn, ecigs, etc. you'll find yourself out of luck because you are on the list. Of course, knowing the reason why doesn't really help your situation.
You're looking for a solution and they're few and far between.
If both of you register with the ECF as suppliers, you'll have access to the suppliers forums, we can help you find what you're looking for in there. As un-registered suppliers, we can't.
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