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Tobacco Merchant Account Management
 

Tobacco merchant accounts are classified as high risk from payment processors. Tobacco merchants will need to apply and be approved for a merchant account that is strictly for tobacco. Tobacco is a regulated industry with many different laws and regulations from country to country. These laws include age limits. When there are age limits and strict regulation, the amount of management required by a payment processor increases dramatically. When the work required increases so does the rate. High risk payment processors must make sure that the merchant operates the business within the rules and regulations of the countries they are selling to. Fake tobacco cigarettes are also an issue for high risk payment processors. These merchants will risk shutting down the aggregate account they are processing through as well as the complete solution if they are penalized. Tobacco payment processors must make sure that their business operates cleanly.

Tobacco merchants sell cigarettes that do not have tax stickers; usually this is an issue in the United States where the cigarettes are sold from a low tax state or from a different country. Either way there is liability from the state and possibly the federal government. Domestic merchant account providers, even high risk ones, will not open tobacco merchant accounts for tobacco merchants unless they have all of the proper licensing that is required normally. Most tobacco merchants operate without a license from a low tax or no tax jurisdiction, for example an Indian reservation. These merchants will put the payment processor and the bank on the radar with the card brands and the government.

Offshore Merchants has been setting up tobacco merchants with payment processing since 2007. Tobacco merchants are able to obtain card processing services quickly and easily when they have compiled all of their supporting documentation and have submitted it to Offshore Merchants.

Contact one of our helpful account representatives to assist you in the setup of high risk merchant accounts, offshore merchant accounts and high risk offshore merchant accounts.