If you own a Head Shop or a Smoke Shop, you’re probably well aware of the difficulties in finding an affordable credit card payment processing solution. Given their classification as emerging-risk businesses, they often face the risk of sudden account cancellations or rejections, especially when banks recognize the sale of “paraphernalia”.
Changing perceptions and ongoing challenges
Despite being legal businesses, head shops and similar establishments face prejudices in the realm of emerging-risk credit card processing. Visa’s recent expansion of high brand-risk categories has further complicated matters.
Historically stigmatized, the public perception of head shops is gradually changing, partly due to the legalization of marijuana across various states in the U.S. However, the payment processing industry remains hesitant. With Visa and MasterCard tightening regulations, head shops must now navigate through even more complex registration processes.
Why are head shops considered emerging-risk?
The categorization of head shops as emerging-risk stems from multiple factors. These include the business’s credit history, chargeback ratios, fraud incidence, and overall public perception. Industry-wide factors such as high chargeback rates and potential brand damage to banks also contribute to this categorization.
Finding the right merchant service provider
For businesses in these categories, selecting the right merchant service provider (MSP) is crucial. It’s essential to partner with MSPs that are transparent about their banking relationships and have ETA-Certified Payment Professionals.
Applying for a merchant account
When applying for a merchant account, avoid submitting multiple applications to prevent red flags. Ensure that your application is complete, professional, and accurate. Fully understand your contract, including all rates, terms, and specific requirements.
Bankcard International Group: a trusted partner
With nearly two decades of experience, Bankcard International Group specializes in serving emerging-risk industries like head shops and smoke shops. Our team’s expertise and strong banking relationships enable us to offer reliable payment processing services tailored to the unique needs of emerging-risk merchants.
For head shops seeking dependable emerging-risk credit card processing, Bankcard International Group offers solutions that blend fairness, reliability, and exemplary customer service. Contact us for more information or to receive a tailored quote that addresses your specific payment processing requirements.
