Desperately Seeking a Merchant Account!

11 years ago

Originally Posted by cortsmith

I can't find a company willing to take on my Canadian based online store selling electronic cigarettes.

I've been trying for two months.. contacted at least two dozen companies and filed 7 or 8 applications, and no one wants to touch the ecig product. It's a major problem for retailers in Canada.

Right now , my only real option seems to be an offshore account at 10%+.Im not quite that desperate yet. But I feel like I'll be losing out on a lot of sales if Im not able to accept credit cards.

Anyone know of some smaller companies willing to take in this "risk"?

Are ecigs considered high risk? That's a major bummer.

Thanks
1 reply

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cortsmith 11 years ago

In Canada they sure are. They are being lumped in with straight up tobacco products, which is very frustrating because I am not illegally selling nicotine e-juice like many of my competitors.

I am trying to do everything above board, and it's all 100% legal. But for some reason, banks and regulators think they are a big risk.
- Thanks
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budzy

11 years ago

Yeah, Canada is a bit of a regulated backwater when it comes to banks. Helpful in a financial crisis but unhelpful when it comes entrepreneurial activity.

Have you thought about using a credit union?

Desjardins might work: Desjardins merchant solutions

Remember, you have to be a member to make it work, and it helps if you're actually close to their locations.

Thanks
1 reply

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cortsmith 11 years ago

Thanks for the suggestion, budzy.

My business bank account is through a local credit union. They won't touch it.

And to be blear, its not just Canadian banks.. US ones wont touch it either, UNLESS I incorporate in the US, then some of them will consider it.

Thanks again.. Going to keep searching and keep accepting suggestions!
- Thanks
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Jack Gordon

11 years ago

Is your business up and running now, or are you still trying to get it going?

Think of it this way. If you have no sales yet, you are asking a merchant provider to take two big risks... one on your product causing chargebacks/complaints, and one on you not being able to get the business off the ground.

Remove one of those concerns up front, and you'll have an easier time finding someone to take a chance on the other.

Thanks
1 reply

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cortsmith

11 years ago

Originally Posted by rocket2uranus

Is your business up and running now, or are you still trying to get it going?

Think of it this way. If you have no sales yet, you are asking a merchant provider to take two big risks... one on your product causing chargebacks/complaints, and one on you not being able to get the business off the ground.

Remove one of those concerns up front, and you'll have an easier time finding someone to take a chance on the other.

Good points and thanks for the perspective.

The business just opened, and I am accepting orders. So maybe once I get a little bit of a history it will help.

Thanks

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Jack Gordon

11 years ago

Here is another thought...

I assume you have tried searching for "high risk merchant account providers" or something like that already.

Think of some other high risk businesses, and try searching for those. For instance, "collection agency merchant account" or "online gambling merchant account"

I don't know if that will work, but it may be another way to find good candidates

[ 1 ] Thanks

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Vanilla Gorilla

11 years ago

I just noticed that on my Shopify site that they are offering a "Shopify gateway". It's sponsored by Stripe, but apparently all you have to do is click a few buttons and it sets up for 3% +.30 per transaction fee. I have a "high risk" product that I'd like to launch soon, but every processor I've found so far have offered me 10% transaction fees for the first 6 months.

Thanks

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planbpayments

11 years ago

ecigs are considered high risk by almost all the acquirers and PSP's worldwide. And unfortunately the only option for you is to go for a high risk merchant account either onshore or offshore.
For Ecigs the discount rates range from 6-9% along with a 10% rolling reserve.

Thanks
1 reply

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Vanilla Gorilla

11 years ago

Originally Posted by planbpayments

ecigs are considered high risk by almost all the acquirers and PSP's worldwide. And unfortunately the only option for you is to go for a high risk merchant account either onshore or offshore.
For Ecigs the discount rates range from 6-9% along with a 10% rolling reserve.

Pardon my ignorance, but what is a rolling reserve?

Thanks
1 reply

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Jack Gordon 11 years ago

Originally Posted by Vanilla Gorilla

Pardon my ignorance, but what is a rolling reserve?

They want to keep more of your money in a sort of escrow to cover the possibility of chargebacks
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- Vanilla Gorilla 11 years ago
  
  Originally Posted by rocket2uranus
  
  They want to keep more of your money in a sort of escrow to cover the possibility of chargebacks
  
  ouch. That's horrible.
  
  Thanks
  
  1 reply
  
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  Silas Hart 11 years ago
  
  Originally Posted by Vanilla Gorilla
  
  ouch. That's horrible.
  
  It's actually normal practice among most processors, especially if you do more than a couple thousand in sales each month.
  
  Thanks
  
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Vanilla Gorilla

11 years ago

This place ,advantageprocessors mentions directly on their home page that they accept high risk merchants, including ecigs.

Thanks

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PBScott

11 years ago

I'm assuming PayPal has been tried?

Thanks

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teeds01

11 years ago

Feel free to PM me - I have a contact that can help you.

[ 1 ] Thanks

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KBull

11 years ago

My merchant account is through eprocessing and they've been great!

Thanks
1 reply

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T_R_O_N_I_X 11 years ago

Maybe try accepting an alternative form of payment such as Bitcoins? I'd recommend Coinbase.com as your processor.
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adils29

10 years ago

Originally Posted by cortsmith

I can't find a company willing to take on my Canadian based online store selling electronic cigarettes.

I've been trying for two months.. contacted at least two dozen companies and filed 7 or 8 applications, and no one wants to touch the ecig product. It's a major problem for retailers in Canada.

Right now , my only real option seems to be an offshore account at 10%+.Im not quite that desperate yet. But I feel like I'll be losing out on a lot of sales if Im not able to accept credit cards.

Anyone know of some smaller companies willing to take in this "risk"?

If you are still looking for a merchant account that can support your business, feel free to PM me. I may be able to help

Thanks
adil

Thanks

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bigcat1967

10 years ago

Check out this company. I believe they are called "High Risk Merchant Account". Here is the link anyway...High Risk Merchant Account

Thanks

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sbucciarel

Banned 10 years ago

Originally Posted by cortsmith

I can't find a company willing to take on my Canadian based online store selling electronic cigarettes.

Anyone know of some smaller companies willing to take in this "risk"?

I used AcceptSafe.com for knives, swords, personal protection items, etc. Don't know if they deal with Canada or not, but worth a try. Easy acceptance if they do.

Thanks

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timpears

10 years ago

This is just too much hassle for me. Surly you can make PayPal work.

Thanks

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Tim Pears

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yakim1

10 years ago

I don't know why PayPal would not work. PayGoBank.com is processing physical products through PayPal using PayPal's adaptive API. So affiliates, partners and even brokers are paid instantly at the point of sale.

You just need a verified Business PayPal account to use the PayGoBank.com service. They even have the ability to email your fulfillment house so the products can be shipped directly to your customer when the purchase is made.

Best regards,
Steve Yakim

Thanks

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jumbo1

10 years ago

I've read great things about this Canadian merchant account provider a while ago and saved it on the side... The owner is a young entrepreneur who gives great care to his customers and has a staff of competent employees.. They've been in business for some years:

merchant-accounts.ca

Thanks

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jumbo1

10 years ago

Not sure if they'll accept an e-cig retailer, but you can always try to contact them

Thanks

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mikemccalle

10 years ago

use paypal,there the customers can pay with a paypal account or without it,and money in both cases will be converted

Thanks

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maximumrecovery

10 years ago

Ive been in your boat the last couple of weeks an absolute nightmare, not for e cigs but another high risk category finally got approved today. Try googleing "high risk merchant account" there are a good few results and Im sure you can get lower than 6% on offshore as I've come across a few from the UK.

Also call them and tell them straight up you sell e cigs, will save you a lot of time and form filling

Thanks

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JulieWhite

10 years ago

Good luck with Canada, as they are certainly more strict than US now. I remember reading about their updated Email Marketing & Anti-Spam policy recently. Let's just say that I dropped my plans of launching my email campaign in CA

Thanks

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wmrwl

10 years ago

Just out of curiosity do you know who your competitors are using for their merchant banks?

If you don't know, you can always call a few of them posing as a concerned customer who has heard scary things about data compromises, etc. and want to make sure your credit card info is safe.

Thanks

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Desperately Seeking a Merchant Account!

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