LINKS

"
THE LOWEST RATES...
MOST BUSINESS TYPES...
WE SAY YES WHEN
OTHERS SAY NO...
7 DAY APPROVAL...
NO HIDDEN FEES...

"

 
 
1.800.393.3230
 
 


   

HIGH RISK TOBACCO MERCHANT ACCOUNT HOLDERS FACES RISKS

Tobacco business is considered to be the riskiest business in the whole world. Though the total turnover on the sales is more as compared to other businesses, it is considered to be a declining business. Many fraudulent cases have been reported with the tobacco merchant account. In the early days, the tobacco companies were levied heavy penalties by the banks and some other non-banking financial institutions. The payment gateway systems consider the tobacco merchant account as a high risk transaction processing. The merchants who holds a tobacco merchant account are not provided with credit card facilities because of the fraudulent cases has already taken place in the long run.

The tobacco merchant account falls under offshore merchant accounts which are considered to be a high risk merchant account. Online tobacco merchant accounts have emerged and are improving in an incredible speed as compared to the early days. A very high tax rate is imposed on tobacco industries by the government. This is done so as to reduce the level of consumption which is affecting the tobacco companies in a big way. The merchant account provider refuses most of the tobacco industries to open a new tobacco merchant account. This is done due to the slow progress in the online tobacco business. To encourage the online tobacco businesses, the banks and the merchant account provider refuses a merchant to have a normal tobacco account. The banks and other non-banking financial institutions have made a set of rules which are very harassing for the tobacco merchant account holders.

The tobacco companies should also be careful while choosing as to which country they should export their product. Normally, a tobacco supplier exports the product to those countries where the tax rates are low. The tobacco producing companies that have faced many kinds of obligations as well as problems while carrying out the business in the early days. But all those kind of problems are now overcome by the impact of internet technology in the banking sector. Offshore Merchants, an internet site, has been into act for helping the tobacco merchant account holders. This system helps in providing merchant account to the tobacco companies and also processes the credit cards for various transactions.

The Offshore Merchants system also helped the tobacco businesses to get a world-wide marketing for their business. It is accessed through the internet and a merchant can easily access the tobacco merchant account from any part of the world using a computer and a secure internet connection. Finally, when the business flourishes, there in sudden increase in the volume of sales and the merchant can get a high turnover of profit out of it thus eliminating risks. Many and different payment gateway systems have emerged which compliments the online tobacco merchant account. The payment gateway system acts as a server while processing of online checks and credit card is done. A credit card terminal is not required. The user or the customer has to enter or provide the required as well as necessary information to make a successful transaction. Once all the formalities are fulfilled, the customer can go ahead with the online payment methods.

Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.