High Risk Accounts

FDA Ruling

After a federal court ruled that the FDA could not regulate e-cigarettes as a drug, they have decided to regulate them as tobacco cigarettes, despite the numerous significant differences. As a part of this they may decide to implement new warning labels on any e-cigarette packaging.

What Does This Mean To You?

If they decide to do so anybody who purchased e-cigarettes that did not have a warning label will legally be able to chargeback the cost of the merchandise, including those who made a purchased before the ruling. Because of this many banks and merchant service providers are not willing to risk being held liable for any chargebacks that may occur. To protect themselves, they have actually been suspending their accounts with any e-cigarette companies in their portfolios.

Don’t Worry

If this has happened to you, or you think it may in the near future, Credit Card Processing Group may be able to help. Credit Card Processing Group specializes in high risk merchant services. The gateways, banks, and processors we work with, all currently work with high risk merchant accounts including e-cigarette companies. If you have any questions or want to see if we can help your current situation, do not hesitate to contact us.