There is a huge variety of individual vape and e-cigarette products on the market, which is a strong indication of the global potential for this industry. However, because this market is highly regulated it means many financial service providers do not wish to do business with merchants in this space. Finding a payments processor willing to accept credit cards for your online vape/e-cigarette store is likely to be a challenge.
As a specialist in processing payments for high-risk and hard to place online merchants across a wide range of industries, T1 Payments has the experience and understanding of the challenges vaping & e-cigarettes businesses face. We pride ourselves on delivering a solution that will help you quickly set up your online store, seamlessly accept credit card payments globally for your products, and navigate the minefield of industry regulations.
Many of the products in the vape/e-cigarettes industry are regulated and this places vaping/e-cigarette businesses in the high-risk category as they must comply with different regulatory requirements. For example, your online store will need to verify the age of buyers, you must include all health warnings and there are some regions where certain vaping/e-cigarette products cannot be sold.
In the US, many processors will refuse to work with vape/e-cigarette merchants for two reasons:
T1 Payments can help underwrite and provide payments solutions for your online vape business because we understand its regulatory requirements associated with this industry, and do not see them as an obstacle to starting or growing your online business.
The global e-cigarette and vape market size were valued at USD $12.41 billion in 2019 and is expected to expand by 23.8% from 2020 to 2027. This is owing to growing product demand from millennials and the increased availability of a variety of e-cigarette options.
Know your Vaping and E-Cigarettes products…there are lots!
E-liquid (or e-juice) is made from vegetable glycerine and propylene glycol, and usually contains nicotine and different flavours. The e-liquid is heated up to produce a vapor which the user inhales (‘vaping’). The e-liquid make-up varies depending on the manufacturer, the nicotine level and if flavourings are used.
The ‘coil’ is element that heats up the e-liquid to vaporise it. The e-liquid is contained in a tank which is held in a tank within the vaporiser. The coil is heated and the vapor produced when the user holds down a button or inhales on the vaporiser. Over time coils burn out and need frequently replacement.
The configuration of the coil, tank and other parts depends on the type of vaping equipment and the manufacturer. E-cigarettes and vape pens’ are simpler devices and are usually fuelled by either a small refillable tank or a pre-filled e-liquid flavour pod.
Vape mods are more complex devices with a main control unit featuring the fire button that is attached to the tank. The tank also comes apart to allow the user to manually fill it and replace the coil when required. The design of mods and tanks varies greatly depending on the manufacturer. There is a huge amount of choice when it comes to these devices!
Some advanced users like to build their own coils rather than using pre-manufactured brand ones. This is a more complex procedure requiring metal wire, organic cotton and a compatible tank. RBAs are an option for lots of mods and tanks.
The first obstacle when planning to open an online vape shop would be finding a payment processor who is willing to accept your business. The market demand is growing rapidly, but so are the regulations. Many financial service providers don’t like doing business with industries that are in the midst of heightened regulatory activity. Now is the time to look for a payment processor, such as T1 Payments, who specializes in delivering solutions for not only online vape stores but other high-risk businesses as well. We have the experience you need to smoke your competition.
*except in regions/countries where vaping/e-cigarette products are restricted/prohibited.