Tobacco Merchant Account
Best Solutions For Smoked Tobacco & Nicotine Business. Price and service with the most understanding for you.
WE SUPPORT THE FOLLOWING TOBACCO TYPES:
Pricing / Fees
Fees will be affected by various factors like processing history, method of sales, countries, sales volume and products. Hence, fees for every merchant will be unique. However, terms will remain same for most. Below is a list of fees involved.
Fasto is your best choice to help your tobacco business.
Fasto provides the best support and always ready to help.
We understand your needs and business like no other and we will work above and beyond for you, and to get you the best terms. And we have the solutions you need.
Fasto offers payment processing in Europe, therefore the merchant has to have a European company plus fulfill requirements for documents and website compliance for the application process.
Your merchant account will be categorized as 5993 MCC, which will help the payment processor(s) identify the transactions and implement the laws.
We have a restriction policy to comply with local and EU laws in smoked tobacco and nicotine.
We cannot accept merchants located in France and in Spain, since both domestic and cross-border online sales of tobacco products are highly restricted. Sale of Cuban cigars to USA is prohibited.
Throughout the entire contract duration, you have to keep track on the EU consumer law and serve customers country-wise correspondingly. And 3D secure is required for all transactions.
One-stop-shop for your tobacco business. Bespoke solutions for comfortable payment acceptance.
Tobacco Merchant Acquiring
One of the first things needed for you as a merchant is to obtain a tobacco merchant account, in order to invoice your customers and accept payments. This merchant account, widely known as Merchant ID, can be obtained locally or from foreign payments acquirer.
Different things like pricing and terms varies depending on whether your business is a start-up or comes with payment processing history. When it comes to your business being a start-up, a risk mitigating rolling reserve of usually 10% will apply and comes with inconvenient payment terms. But we try to stay competitive and help you get started at the cheapest costs and easiest terms possible.
If you are selling smoked tobacco and nicotine, there are quite a few rules and restrictions as mentioned above in the “Restrictions” section.
Tobacco Merchant Solutions
Credit card solutions is the first preference for online sellers of tobacco in order to serve a broad range of market. Popular demand is for VISA and MasterCard, while more can be arranged for depending on the market.
Rising demands for Local and Alternative Payment Methods with growth expectancy of more than 1000%+ over the next five years. Depending on the markets, some of the noteworthy ones are SoFort, Crypto, Klarna, SEPA, iDeal, Bancontact and more.
More solutions at checkout means higher conversion rate, and happy customers tend to always return to the store of their convenience.
Tobacco Merchant Risks
Tobacco industry is flagged as high-risk by payment processors due to heavy regulations subject to frequent changes, locally and abroad. Besides, this industry has reputation risk and health risks to consumers, alongside inadvertently selling products to minors, triggering liabilities.
Additionally, increased chargeback risks for late delivery, etc. and fraud risks associated with online selling brings this industry to a high-risk profile. However, we have solutions in place to help battle some of the risks such as chargback alerts and fraud prevention tool.