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Three Reasons to Invest in a Tobacco Merchant Account

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Tobacco is considered a high-risk industry, and this has migrated towards online sales of these products. Some companies who sell tobacco products may not be aware of the risks that online retailing can pose in the industry, which is why merchant accounts for tobacco companies are a worthwhile investment.

1. Banking and Multi-Currency Options Available

Countries have specific laws in regard to tobacco sales and trades; to add to that, the United States has laws that differ based on the state where the tobacco sale occurs. This makes it difficult to know what the tariffs and restrictions are for online retailers.

A tobacco merchant account has offshore banking solutions for retailers who sell their wares internationally, enabling a company to conduct their business across borders with little to no interruption for their consumers.

Because online tobacco sales often include currency from different countries, having the option to host multiple currencies from a variety of banks is critical for success. Having an account that offers exactly multi-currency options allows companies to avoid conversion rates and keep their products at affordable prices.

2. Bypass Age Restrictions Enabled on Other Merchant Accounts

Some online-only merchant accounts have age restrictions, especially for tobacco sales. This restriction extends to e-cigarettes, hookahs, and other tobacco-related products as well, because these are all considered “high-risk” products because of the laws prohibiting the sale of these products to minors.

The age restriction can lead to denied or frozen transactions or even a company having their own account canceled due to the types of products they sell. This means that sales can be prolonged, canceled by the account or by the consumer for the delay, and merchant accounts can even be frozen for review based on the policies laid out by the banking company.

By investing in a industry-specific merchant account, companies can avoid the legal hassle of prominent but general merchant accounts. Because these accounts are used to the process of selling tobacco products online, they are the perfect allies for companies who sell tobacco products.

3. Transparent Pricing Before Applying

Merchant accounts should be, and are, accounts built for transparency; this goes for consumers as well as the businesses that use them. Because there are some fees that are required for tobacco merchants, it’s imperative to find a company that relays those fees up front, thereby reducing the risk of hidden payments that some tobacco businesses might have to pass off to their customers in order to stay profitable.


By researching various merchant accounts tailored for tobacco merchants, companies can save time and money. Because online retailing of tobacco products continues to grow, a tobacco merchant account is an investment that shouldn’t be overlooked. In fact, it should be one of the first issues resolved when migrating a shop online.