Tobacco Credit Card Processing and Merchant Account

Online Tobacco Merchant Account

Many online businesses such as those selling tobacco products, as well as other industries, must use high-risk merchant accounts. These companies can have an excellent reputation and a high credit score. However, because, unlike physical retail businesses, they have few assets and no ties to a physical location so they are viewed as high-risk. Banks feel they may spend too many resources handling these accounts and have little hope of recouping debts if the company goes under. However, fret not, because High risk Pay is here to provide a solution! 

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Why choose High Risk Pay as your merchant services provider ?



We offer high risk merchant accounts to all business types in high risk categories.


99% approval

Having trouble getting approved for your high risk merchant account? Did you know HighRiskPay approves 99% of all applicants!



HighRiskPay understands that time is money. Entrust us yours and we’ll be sure to make it worthwhile! Apply Today and Be in Business Tomorrow!

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Reasons Online Tobacco and Cigarette Sales Are High-Risk

Companies selling tobacco, cigars  and cigarettes online are among those seen as high-risk because of the products they sell. Nicotine and tobacco are controlled items that must meet some state and federal laws, licensing rules, shipping constraints, and tax obligations. Abiding by all these legal conditions is sometimes too hard for business owners, and they may go out of business after a short time. So oftentimes they are denied card processing solutions.

The possibly short-term nature of the business makes online tobacco, cigar and cigarette sales risky. They also have more chargebacks than other companies, adding more risk. Also, the consumer may not be of age, may buy and aim to resell, or may use fake credit card information, all of which can lead to too many chargebacks. However, High Risk Pay can offer payment solutions for these companies. 

Accepting Credit Card Payments

High-risk merchants need to be able to process credit cards to make sales and, thus, profits. They are a standard method of payment for consumers due to their ease of use. Plus, they are secure for making online purchases. Online payments also make it easy for account e-commerce internet merchant to set up loyalty or subscription programs because they can auto-charge a customer’s card for a continued service.

If you own an online tobacco and cigarette sales company, a high-risk merchant account will help you to accept credit cards, which would benefit you in many ways. Sales and profits will increase, and your company will look stable and well established. Your customer base may also grow as your product becomes accessible to more people. See more about e-commerce credit card processing.

Online Security

Creating a secure internet account is vital for an online tobacco and cigarette sales merchant. Customers expect their online transactions and data to be secure, and using the latest software technology will make your website safe from hackers.

Choosing an Account Provider

First, decide what you want based on the payment types your customers tend to use. Will you take phone orders on top of online transactions? Will you use recurring subscription fees? Second, compare your merchant account choices. You will find that High Risk Pay is equipped to deal with companies that have increased fraud risks, and we offer some solutions. We know that many merchants who engage in these types of sales are knowledgeable and reputable business owners. And, our fees are similar to those charged by more traditional High Risk merchant account providers.

Payment Options

Business owners can take some payment options with a high-risk merchant account from High Risk Pay. Customers can call in order and pay with a card (a card not present transaction), or they can pay through a secure portal on your company’s website. Customers shop at their leisure, and all you have to do is fill the order, giving outstanding customer service in the process.

Our Chargeback Prevention Program

As mentioned before, you run the risk of a high amount of chargebacks when you sell tobacco and cigarettes online. We offer a highly efficient chargeback prevention program that reduces these by working with your current payment processor. Most cardholders do not contact the merchant before they file a dispute. This can lead to unfortunate chargebacks, fees, penalties, and sometimes the loss of your processing privileges. Our chargeback prevention program provides early alerts, giving you time to contact the customer and so you can fix the issue.

This program also fights chargebacks with an automated system that sums up and submits each case. These cases are won at twice the rate of the industry average. The program reduces fraud by finding fraud-prone accounts before you incur any losses. A small percentage of declined orders are valid. The system notices these and alerts you so that you can still recover the sale. This chargeback prevention program has no set-up charges, a flat monthly fee, and a small fee for each chargeback alert.

Avoiding Chargebacks

Avoiding chargebacks in the first place is, of course, the best answer. Make sure your business name is the same as the name on your website to stop any confusion. Place a phone number in the billing descriptor, with an “800” number if possible. And, most importantly, always offer excellent customer service, which includes giving refunds to your customers when you need to.

High Risk Pay also offers a solution that allows the online system to capture credit and debit cards in real time. This shields all online sales through a web link, virtual terminal, and audit trail. The system is fast and secure, and funds are transferred to your account within 24 to 48 hours.

What You Need to Open a High-Risk Merchant Account

To open a High Risk Pay merchant account, you will need a U.S. business checking account since credit card payments are deposited directly into it through ACH. We also need a valid photo I.D., business license, current bank account statement, and any prior merchant account statements. Accounts can be approved in as little as 24 to 48 hours.

Do bear in mind that you will be charged an interchange fee by Visa and MasterCard. These companies assess a fee for each payment transaction, which is then passed on to the card–issuing bank. The card issuer takes out the interchange fee when it credits your account for the purchase.

For an online tobacco and cigarette sales venture, a high-risk merchant account reviews comes with many perks. These can mean increased sales volume, recurring billing, and multi-currency options. Contact High Risk Pay today, and we will help you set up a merchant account that provides the services and options you need. You will be able to start processing credit card transactions for your company in just a few days. See more about high risk processing.

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