You need to get a merchant account, but you’re getting the cold shoulder from your local bank. What the?! You run a good business and have a bank account already! So why are they STILL freezing you out?!
Okay, think of it like a marriage. Say you find the girl of your dreams and want to get hitched…only to find out she has massive credit card debt, owes the IRS, and maybe has a gambling problem. But, wait – she has potential! It’s all about love, you say!
No. Let’s get real here – you’d think twice. Do you really want to assume that kind of risk? If it doesn’t work out – you might just be stuck with all her debt. Run for the hills, my friend!
Based on the same principles, the bank will not give you their hand in marriage if you have bad credit, active tax liens, are on the Match List, or are a high risk business. Wait, back up the truck. What was that last one? Probably the most relevant to your situation. You are actually considered “high risk” for them if you own any of the following types of businesses:
• Adult Content
• Medical Marijuana
• And, of course, Electronic Cigarette & Vape
So, if this is you, virtually all banks will decline your application for a merchant account. “But I have an account with this bank!” you say. Well, that doesn’t help your case because it has nothing to do with the bank’s tolerance for risk.
How Do You Fix This Problem?
You have to find a merchant account that specializes in high risk businesses – but specifically for vape. Obviously you can do a Google search, but too many companies claim to specialize in this industry and kill you on the fine print. Pick up the phone and call them. Ask a lot of questions. Compare companies. This, like marriage, is one of the most important decisions you have to make in your business life!