Tobacco merchant accounts by Instabill


  • Accepting existing & startup merchants

  • Offshore credit card solutions

  • Checks, ACH & direct debit

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In the U.S., laws regarding tobacco use and sale are different in each state, a fact that renders the issue of offering domestic tobacco merchant accounts a grey area. Thus, Instabill offers offshore merchant account solutions for tobacco merchants.

Approvals on a case-by-case basis

Acquiring banks view tobacco as a high risk industry for two reasons. Firstly, echoing the above, laws differ between each U.S. state which makes the sale of such over state lines particularly hazardous, yet near impossible. Additionally, the risks of tobacco in the possession of consumers under 18 years old makes banks uneasy.

Secondly, tobacco use causes health concerns, which have been well documented. It is consistent with industries such as e-cigarettes, kratom, weight loss and online pharmaceuticals that have similar concerns.

Underwriting for Tobacco Merchant Accounts

Because it is among the highest of the high risk industries, tobacco merchant accounts require thorough vetting to gain an approval. Typically, our merchant account managers require 4-6 months of credit card processing documents which show the company name, total sales and detail chargebacks, refunds and returns.

What you can expect from our tobacco merchant account solutions

Among several fees, our offshore merchant account solution for tobacco includes a six-month rolling reserve as well as the following fees:

  • Refund fee
  • Chargeback fee
  • Merchant discount rate
  • Monthly statement fee
  • Monthly gateway fee
  • Monthly payment gateway fee
  • Per transaction fee

Have a conversation today

It’s no secret that approvals for tobacco merchant accounts take some doing. With a 10 minute conversation with one of our merchant account experts, we’ll develop a good feel for your business and know what options we’ll be able to provide for you. Our merchant account managers are available Monday through Friday between the hours of 8 a.m. and 6 p.m. U.S. eastern time.

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