Can Vape Merchants Use Paypal?

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Last Updated on July 1, 2022 by Corepay

With Paypal being one of the most popular companies in the payment processing game, it’s no surprise that many vape merchants initially choose Paypal as their partner. This article will break down everything vape/e-cig merchants need to know about Paypal.

As of 2020, merchants can not sell anything related to vaping or e-cigarettes, including paraphernalia. While this is unfortunate, Paypal never specialized in vape payment processing and has reportedly shut down thousands of online stores using their gateway.

Whether you have come to this article after finding that Paypal has frozen your high-risk merchant account or simply looking for a merchant account for vaping, you’ve come to the right place.

Why Don’t Vape Merchants Accept Paypal?

Paypal has a strict policy against merchants using their platform for sales. As a result, in 2020, many merchants lost their merchant accounts and were forced to scramble to find alternative payment gateways and merchant accounts so they could continue accepting payments.

Why Did Paypal Ban Vape/Ecigs?

There are several reasons for the ban. The main concern with vaping is regulation and health concerns. Vape is also considered a high-risk industry, and Paypal has written in their terms of service that they do not work with these types of businesses.

Paypal Closed My Vape Merchant Account – What Next?

Having a merchant account terminated is perhaps the worst thing to happen when operating a business. For this reason, we always recommend that all merchants have more than one account.

We advise all merchants to contact the provider any time an account is closed and ask for the reason. This process will take months, so start looking for a new processing partner immediately. 

When searching for a new processing partner, be sure they specialize in high-risk industries. If not, you will run into the same problem you did with Paypal.

Suppose you’re looking to avoid the frustration of having your account terminated. In that case, we highly recommend filling out the application below for a quick pre-approval and phone call to determine the next step.

Will Paypal Ever Allow Vape Products Again?

While this is a difficult question, we would guess that Paypal will not accept vape products in the future. But, to play devil’s advocate, there can be exceptions. For example, you may have noticed that your competitor uses Paypal for their vape store. 

For this to happen, the merchant needs to reach out to Paypal and explain what they are selling. You would like need to have massive sales with little chargebacks for Paypal to consider; even then, you run the risk of having your account terminated.

Finding A Merchant Account Provider That Specializes In Vape

The path to finding an alternative to Paypal for vaping products is challenging but not impossible. You will need to partner with a high-risk payment processor familiar with the vaping industry to maximize your approvals and save money on processing fees.

At Corepay, we have over two decades of high-risk experience and understand the ins and outs of the vape industry.

Should you be in the market for a merchant account, we are confident that we can get you up and running quickly and efficiently.

Are You Currently Selling Vape Products On Paypal?

If you sell vape products on Paypal, we advise you to immediately search for a high-risk payment processor and switch entirely over. 

Because Paypal doesn’t perform their underwriting at the same time as the application, you might be able to get away with selling vape products at the beginning of your store.

What happens is something we have seen over and over: a merchant will end up getting their account frozen/terminated when Paypal underwrites the merchant.

This will result in your funds being held for 180 days or six months, leaving you with no way to access them. 

Why Can’t I Use Paypal To Buy Vape Products?

Like merchants, consumers might find it frustrating that they are unable to use Paypal at checkout. Paypal’s terms of service prohibit merchants from using their service; therefore, consumers are also affected.

Other Payment Processors That Don’t Accept Vape

There are a few other major payment processors that you might look to outside of Paypal. Before signing up, review the list below to see which other processors do not accept vape.

  • Stripe
  • Square
  • Shopify

All of these options are fantastic for low-risk stores; however, they all have strict guidelines against vape/e-cigs.

Wrapping Up

With Paypal no longer being a valid option for vape merchants and many high-risk merchants, we recommend focusing on a tailored merchant account to fit your business type.

At Corepay, we are confident that we can get your account up and running and help you grow your business to great heights.

Choosing a payment processor doesn’t need to be difficult, and we are here to help. Fill out the application below to get pre-approved.

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