Vape & E-Cigarette Merchant Accounts

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The vape and e-cigarette industry is nothing short of electric. Worldwide vaping sales reached $15.7 billion in 2018 and are expected to reach $40 billion by 2023. While the vaping/e-cigarette industry is highly profitable, banks and credit card processors also consider it high-risk. If you are a vaping merchant, you will need a vaping merchant account from a reliable payment processor who understands the complexities of the vaping industry.

The vape industry can range from a variety of business models as there are successful vaping businesses that are brick and mortar and operations that are primarily online sales.

At Corepay, we are proud to offer merchant accounts for the following in the vaping industry:

  • Vape pens
  • Vape juices
  • E-Cigarettes
  • Vape cartridges
  • Vape tanks
  • Coils
  • Rechargeable e-cigs
  • Vaporizer accessories
  • Mods
  • E-liquids
  • Batteries
  • Chargers
  • Cartomizers
  • Drip Tips

While many factors lead to vape merchants being deemed high-risk, the biggest reason is health/safety concerns and some products not being approved by the FDA. Vape is also federally regulated with legal age restrictions.

We are currently offering merchant account solutions for all vape/e-cig businesses that are selling legal products. For companies selling flavored vape juice products: The FDA has now declared companies must pull all flavored cartridge-based e-cigs other than menthol and tobacco.

Companies selling flavors such as lemon or mint risk FDA enforcement actions, and it is advised that those doing so should pull all illegal/banned products.

Corepay offers the following solutions for vape merchant accounts:

  • Vape Retail: Solutions that are best suited for traditional brick and mortar retail settings with reliable internet. A retail vape merchant account allows you to accept in-person credit/debit transactions.
  • Vape eCommerce: Solutions for Vape, e-cigs, vape tanks, and other accessories. For this, you will need an eCommerce merchant account designed for the high-risk vape industry.
  • Vape Payment Gateways: Corepay is proud to offer our own payment gateway, Netvalve, to all of our clients. Netvalve was designed to support high-volume eCommerce merchants. These are best suited for those merchants who make most sales via phone. 
  • Vape Mobile: Mobile vape/e-cig merchant accounts allow businesses to accept in-person payments via your cellphone. These solutions are perfect for selling at special events/conventions. Vape mobile merchant accounts are typically priced similarly to retail accounts as the chargebacks/fraud are usually relatively low.

We also waive application fees, annual fees and set up costs as a means to maintain transparency with our clients. Once your application is submitted, you will hear back swiftly from one of our trained account managers and be informed on what the next step is to take.

With over two decades of high-risk credit card processing experience, we can get you pre-approved and processing payments in the vaping industry swiftly and effectively.

How To Apply For A High-Risk Vape Merchant Account?

When applying for a vape merchant account, merchants will need to provide specific information to their processor. 

When applying to Corepay, our underwriters will do a complete review of your application and make sure that you are running a legitimate business.

Underwriters will investigate merchants to get a clear picture of their business. Unpaid bills, negative bank balances, late payments, and a history of frequent chargebacks are things that will make your business a little bit more risky than others. 

Upon applying for your merchant account, you will also need a secure website.

Applying for vaping/e-cig payment processing is an exciting thing to do, as your payment processor will likely be with you for the long haul.

Below is everything you need to know when applying for your vaping account. The more information you can provide, the faster you will get your account up and running.

  • Proof of SSL website
  • Voided check
  • Social Security Number
  • A valid government I.D.
  • Six months of processing statements (To show chargeback ratios)

Please note: Corepay can only do processing for all legal things vape-related, with the exception of fruit-flavored/mint flavored juices, as the FDA bans them.

Why Is Vape Considered High-Risk, And What Does That Mean For Your Business?

The vape/e-cigarette industry is considered to be one of the most high-risk industries. While your business might be considered high-risk, this isn’t necessarily a bad thing.

While you will be paying more for a vaping merchant account, you will also be paying for chargeback solutions and guidance from high-risk processors who understand the nature of your industry.

If you’re wondering whether or not being deemed high-risk makes it harder to get a merchant account for vape products, the answer is yes. That being said, there are some great high-risk payment solutions that specialize in the vaping industry.

The following reasons are why the vape industry is deemed high-risk:

  • Heavily regulated by the FDA
  • Can cause potential health problems
  • Chargebacks
  • Age Legality Enforcement

FDA Regulations

Certain products are banned by the FDA, which can lead to some grey areas when it comes to getting approved. If a bank and processor takes on a vaping business, they are taking on the risk of that company potentially selling unregulated products and getting in trouble by the FDA.

Health Problems Associated With Vaping

While some major health organizations deem vaping to be somewhat safer than cigarettes, they are still harmful. This makes the industry a little bit more risky as customers are ingesting potentially harmful substances.

There is also the rare case in which electronic vapes have exploded. Companies need to have guidelines listed very clearly that state customers are not allowed to modify their vapes.

Vaping Industry Chargebacks

Chargebacks frequently occur in the vaping world. These chargebacks can occur for numerous reasons, including a customer is unsatisfied with the flavor of the juice or their electronic vape pen. 

If the customer is using CBD vape, they can also file a chargeback/dispute by simply stating the product was ineffective and left them unsatisfied. 

Should your business get hit with too many chargebacks, your fees could rise, and you could risk losing your merchant account. 

Reducing Chargebacks In The Vape Industry

vape chargebacks

Choosing a high-risk credit card processing company familiar with the vaping industry is first and foremost. They will be able to guide you through the process as well as set you up with chargeback prevention tools to help combat disputes.

Here are the best ways we recommend to reduce vape chargebacks:

  • Make sure free subscription trials are actually free
  • Clearly state company policies
  • Have 24/7 customer service
  • Use chargeback prevention tools
  • Fraud filters
  • Recognize the types of chargebacks you are getting and adjust accordingly – At Corepay, we will help you determine the best solution for the chargebacks you are receiving


As the legal age for vaping products/e-cigs is 18 in the United States, banks and processors are taking on risk as it is hard to verify age when buying online.

For example, if someone has a parent’s credit card, they could easily purchase illegally without being noticed.

The products that the FDA bans are fruit-flavored juices and mint-flavored juices.

MCC Code For Vape Related Merchants

The MCC code for vape-related products is 5993. MCC stands for merchant category code, and it is the four-digit number used to classify/categorize merchants based on their business services sold.

Corepay Is Compatible With Existing Vape/e-cig eCommerce Software Platforms

We are happy to support merchants that have a preferred eCommerce/CRM software platform that they are already using.

Should you be looking for a high-risk processor to pair with your CRM software, look no further than Corepay. We are able to accommodate most business needs when it comes to implementing our solutions.

We are able to process your online vape payments with the following automated platforms: 

  • Shopify
  • Woo-commerce
  • Magento
  • WordPress
  • Salesforce
  • Bigcommerce

We are also able to work with other platforms; these just happen to be the more popular options that we encounter.

Corepay Offers The Following For Its E-Cig/Vaping Clients

At Corepay, it is our goal to make applying, getting approved, and integration as seamless as possible. We want to make the experience enjoyable and earn your trust through our service.

We are proud to offer the following to our merchant partners:

  • Waived fees (application, set up, annual)
  • Risk mitigation with Order Insight by Verifi, 3-D Secure 2.1/ our partner product CB-ALERT
  • Traditional chargeback alerts
  • Rates as low as a blended 2.95%
  • Maximize approval ratios based on your target customer base

As fraud is rampant in the vaping industry, we pride ourselves on staying up to date with the latest protocols and making sure your company is doing everything in its power to fight against chargebacks/fraud.

What Are The Fees For Vape Payment Processing?

Corepay offers exceptionally competitive rates focused on growing our partner’s businesses. Upon submitting your application, we will do a full review of your business and set you up with the best payment processing solution for vaping. 

The fees will be higher than your standard low-risk merchant account, but we will do everything we can to keep the prices at a minimum.

Can Shopify Process High-Risk Payments?

Shopify does not process payments for businesses that are deemed high-risk by banks and processing companies. 

While you can still use Shopify as a CRM, you will need a high-risk payment processing solution. 

Merchants need to be aware that even if they are operating in a low-risk industry, they are still at risk of being dropped at any time by Shopify Payments. 

One of the cases that comes to mind is drop-shippers. Although dropshipping isn’t prohibited under Shopify’s terms of services, dropshippers tend to see plenty of chargebacks/disputes. This will lead to Shopify telling the drop shipper to find a high-risk payment gateway before continuing payments.

While not being able to process vape-related credit card transactions is frustrating, the saving grace is that Shopify will still allow you to keep your account as long as you find a high-risk processor.

Should you have had your payment processing terminated with Shopify, contact us today to get your high-risk payment processing up and running in no time.

If your account was terminated, Shopify might hold your funds until they determine the status of it. This time can be up to 180 days after the hold was put on place.

Difference Between A Vape Account And A Low-Risk Merchant Account

There are some significant differences in these types of accounts. The main difference being that major banks and low-risk processors will terminate your account/refuse to work with you if they deem you high-risk.

Fees will also be higher as processing companies and banks are taking on additional risk. 

Working with a high-risk processor protects your business in the long run from having your funds frozen/held and allowing you to have global coverage and process sales nearly everywhere in the world.

Lastly, Corepay offers additional chargeback protection to all merchants as chargebacks can ruin an entire business if not dealt with properly.

What Is A paraphernalia Merchant Account?

Paraphernalia stands for equipment that is used for a particular activity.

Paraphernalia is a very general term that is often associated with smoking equipment such as rolling papers, bongs, rolling machines, ashtrays, glass pipes, etc.

Corepay offers payment processing for all things vaping, provided that they are legal.

How To Choose The Best Vape High-Risk Merchant Account?

Finding reliable payment processing that fits your business’s needs is vital. As Vape is considered highly risky, you will need to choose a payment processor specializing in high-risk industries.

On top of this, make sure that you apply for multiple high-risk accounts and have conversations with prospective processing companies.

The more questions you can ask your processor, the more you can compare what different companies can offer your business.

Did Your Credit Card Processor Shut Down Your Vape Merchant Account?

If your credit card processor shut down your vape/e-cigarette online business, you are in good hands. As the vaping industry is considered high-risk, most traditional processors and banks will not authorize the sale of vape/e-cig products.

By simply filling out an application below, our team can quickly get you pre-approved and back to processing payments in no time.

If your account was terminated previously, unfortunately, there might not be much you can do if you broke the terms and services of your provider. This being said, getting back up and running/processing payments is essential, and we are here to help.

Vaping Industry Overview

In 2020, the United States vape/e-cig market was valued at $6.09 billion.  According to Grandview research, it is expected to grow at an annual rate of 27.3% from 2021 through 2028.

As more and more studies come out against the use of tobacco, safer tobacco alternatives seem to be the driving force in the industry moving forward. 

With a growth outlook that is projected, the vape industry looks like an excellent place for new and established vape companies.

Currently, the top 10 markets for vaping in the world are as followed:

  1. USA
  2. United Kingdom
  3. France
  4. Germany
  5. China 
  6. Canada
  7. Poland
  8. Italy
  9. Russia
  10. South Africa

The United States currently dominates the vaping industry and shows no signs of slowing down. Overall, this is an excellent sign for vape merchants, as nearly every market is growing at a substantial annual rate.

The major players for vape/e-cigs are currently:

  • Reynolds American Inc
  • Imperial Brands
  • Altria Group
  • Japan Tobacco
  • Philip Morris International
  • British American Tobacco

Where Is Vaping Banned?

Vaping is currently illegal in the following countries:

  • Brazil
  • Singapore
  • Uruguay
  • India

Corepay – Your Home For Vape/E-Cigarette Credit Card Processing

Corepay understands the complexities of the vaping industry and knows what it takes to take your payment processing to the next level.

We have established many personal relationships with acquiring banks, and we can get your merchant account for vape/e-cigs up and processing payments in no time without the fear of having your merchant account terminated.

If you are interested in lower fees, additional chargeback support, and 24/7 customer service, fill out the application below and see what Corepay can do for your vaping business.