Credit card processing question


I’m in the process of opening a vap/CBS store in NC and after reading just about every article on this site(Thanks for the great content) I can’t figure out 2 things. 1. At what point are the processing fees paid? Monthly/or at time of transaction? 2. Why is industry considered such a high risk by the banks? Thanks in advance


The point at which the fees would be paid will depend on whether your account is set at either a daily or monthly fee collection so it could be either depending on the pricing and when the merchant processor sets it. I can accommodate either and usually leave it up to the customer to pick what may best fit his/her business type.

There are a few different reasons why the Card companies consider Vape to be high risk. It’s a relatively new product and as it’s closest comparable product is cigarettes it meant the card companies used similar restrictions in allowing clients to accept transactions for this industry. Another factor is that as these transactions are usually made with the cardholder not being present (IE:over a website or moto account) it also adds another level of risk to the banks as the risk of fraud is higher when the cardholder isn’t present and lastly as it is a consumable item the banks will often weigh the ratios of industry charge backs that occur and will also factor those into whether an industry type is considered high risk.

I hope this clarifies some of your questions and feel free to reach out if you want to get the account up and running with a vape friendly merchant processor and/or if you have any other questions or concerns.