Best High Risk Merchant Provider For The Vape and Ecig Industry

Best High Risk Merchant Provider For The Vape and Ecig Industry

Finding a good credit card processor for your vape business can be a challenge especially for your website.  Paypal and stripe are not an option, those that have sold vape products through those services may get away with it for a little while only to log in one day to find that all there funds have been frozen and account shut down.

The merchant account providers that do work with our industry can often be expensive and be priced at 3% or more. The two most well known companies that serve our industry are Bestrate and BankcardUSA. While they are decent, there rates are expensive and can have hidden charges.

Through years of operating in this industry I have found the best company for the Vape and Ecig industry.

Why they are the best

No matter if your a startup or a large business Connect Pay Merchant Services  gives you the best rate at the start, they do not price you higher at first until they can get away with it or when you notice what your getting charged.

Two of the most common payment structures that they offer are

True flat rates– No transaction fees,No monthly fees,  no avs fee, no batch header fee, This plan will just charge you a flat agreed upon percentage.  Depending on your business, this can often range from 2.4 to 2.7%. This kind of rates is usually reserved for companies processing more than 6 figures a month. Depending on the type of card your customer uses, the cost of interchange from the bank can actually exceed these rates. But even if they lose money on some transactions Connect Pay honors the agreed flat rate.

Interchange Plus – This type of pricing can really benefit companies that do more business with regular consumers over B2B customers. Business cards that have a lot of rewards often have a higher cost of interchange (what the banks charge the processor). But debit cards and cards typically used by the regular customers have a much lower rate. So if this is the case for your business than  you could be paying more for a flat rate plan. The way this plan works is that you pay the cost of interchange plus an agreed amount of basis points, often between 50 and 75 basis points (.5o-.75 %). Some things to note for this type of pricing is that if you process less than $1200 a month, then there is a $25 fee for that month. There is a regular monthly fee of $9.95. Again the upside to this type of pricing would be that if you process a transaction with a lower interchange cost (like a regular debit bankcard) you may end up paying less than the flat rate price but if you process a higher costing business or rewards card it may end up costing more than the 2.5 % flat rate.  So you have to decide which plan is better for your business.

Other Benefits

Even if you have a processor, you still need a payment gateway. Most people in our industry use They charge $25 a month but through Connect Pay, you can get the special rate of $10 a month.

Can offer processing for CBD/Kratom- Many businesses want to sell CBD and Kratom online often to be told by there processing company that they cant and if they do there account will be shut down.

They do have a solution for this but there is some things to be aware of.  If you have a website for your vape products, you will need to have a separate website for your CBD/Kratom products. This is because they have to use off shore banks for your processing and it has a higher rate. Typically the rates for these products is over 5%. It sounds expensive but CBD and Kratom often have higher margins. Another plus is the competition is limited online, many companies don’t think there is a way to enter this industry, or view it as too hard so they don’t. The ones that get in early and start now could become industry leaders. The higher rate is much better than not making anything at all in this fast growing industry.

They can offer processing for non high risk counts but they really specialize in high risk. Here is a list of the High Risk Industries they offer processing for. If you don’t see your industry below, be sure to fill out the form and we still may be able to help you.

  • Electronic Cigarettes (E-CIGS) & Vaping
  • Online Smoke Shops,Glass pipes, Vaporizers
  • Tobacco, Cigars, Hookah & Shisha
  • CBD/ Kratom
  • MMJ Dispensaries
  • Online Firearm Sales
  • Health Supplements & Nutraceuticals
  • Recurring BIlling & Subscription services
  • Adult
  • Bars, Gentleman Clubs, Restaurants


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