Experts in High-Risk Merchant Solutions
The vaping and e-cigarette industry is growing rapidly, but for many merchants, finding a reliable payment processor can be a major challenge. Traditional banks and processors often classify vape businesses as high-risk — not because of how they operate, but because of the unique regulatory and reputational challenges of the sector.
Why E-Cigarettes are High-Risk
The industry faces strict and constantly changing government regulations around age verification, advertising, product safety, and health claims — making compliance difficult to maintain. Additionally, high chargeback rates are common due to subscription sales, product dissatisfaction, or shipping disputes. Here are more reasons why:
Strict and Evolving Regulations
Constant changes in advertising, age verification, and product compliance laws make it difficult for traditional processors to support vape merchants.
Reputational Risk
Links to tobacco products and youth usage concerns make many banks cautious.
Cross-Border & eCommerce Complexity
Selling internationally brings tax, customs, and compliance challenges that most traditional banks avoid.
High Chargeback Ratios
Subscription billing, product disputes, and shipping delays can trigger refunds and chargebacks.
How Specialised High-Risk Payment Processing Helps
We specialise in high-risk merchant accounts and payment gateway integration for the vaping industry. With advanced fraud prevention, chargeback protection, and age-verification support, we help you keep transactions secure and compliant.
online and mobile banking
Everyday banking made simple
Online and mobile banking has convenient, easy-to-use features
Global Coverage
Partnerships with trusted acquiring banks worldwide.
Cross-Border Capabilities
Accept payments in over 150 currencies seamlessly, with transparent conversion rates.
Detailed Reports
Transparent pricing and clear reporting dashboards.
Secure Payments
Stay protected and aligned with PCI-DSS, AML, and KYC regulations. We help you navigate the complexity of operating in regulated markets.
Service Guarantee
99.9% uptime and robust gateway performance. We won't let you down with our 24/7 support all the year around.*
Settlement Terms
Fast, Reliable Payouts Enjoy faster settlement times and reliable cash flow management — even across multiple jurisdictions.
Frequently asked questions
Got a question about how High Risk Payment process works for Vaping and e-cigarette Merchants? View more Q&A here
What Is High-Risk Payment Processing?
High-risk payment processing refers to financial services designed for businesses that operate in industries with higher levels of chargebacks, regulatory complexity, or perceived financial risk. These businesses are classified as “high-risk” by banks and payment processors due to factors like transaction volume, business model, or market type.
Why It’s Called “High-Risk”?
A business may be labeled high-risk for reasons such as:
High chargeback ratios or refund rates.
Recurring billing or subscription models.
Operating in regulated or restricted industries (e.g., gaming, betting, or adult).
Serving international customers or processing cross-border transactions.
Large transaction volumes or high average ticket values.
Because of these factors, acquiring banks and payment gateways require specialized risk management tools, compliance frameworks, and underwriting processes to protect both the merchant and the financial institutions involved.
Why are Vaping and e-cigarettes High Risk?
Vaping and e-cigarette businesses are considered high-risk by banks and payment processors because they operate in a tightly regulated and rapidly changing industry. Strict government rules around age verification, product safety, and advertising create compliance challenges, while high chargeback rates from online sales, subscriptions, and delivery issues add financial risk. Additionally, public health concerns and reputational sensitivity make many financial institutions cautious about supporting vape-related transactions. These combined factors lead traditional processors to classify vaping merchants as part of the high-risk category.
What are the Regulatory and Licensing Requirements
Online gaming and casinos are heavily regulated and vary by country or state. The need to comply with strict KYC (Know Your Customer), AML (Anti-Money Laundering), and age verification laws makes compliance management complex and costly. Banks often prefer to avoid exposure to potential noncompliance or regulatory penalties.
Because of high transaction volumes, anonymity in digital payments, and cross-border operations, the gaming sector is a target for fraudulent activity and potential money laundering. This risk demands enhanced monitoring and due diligence from processors.
How to Get Started?
Simply press Get Started for a quick initial Consultation to get pre-approval.
We then start by understanding your business model, transaction volume, and operational setup.
Goal: Identify the best acquiring bank or payment network suited to your industry, region, and risk profile.
You’ll provide:
Basic business details (company name, website, country of operation)
Description of products/services offered
Estimated monthly processing volume and average transaction size
What Supporting Documents are Required?
Once pre-qualified, you’ll need to submit compliance and verification documents so the acquiring bank can review your application.
Typical documents include:
Certificate of incorporation / business license
Owner or director ID (passport or government-issued ID)
Proof of address (for business and owners)
Bank reference letter or recent statement
Processing history (3–6 months, if available)
Website URL (live and compliant with KYC/AML and gaming regulations)
License or certification (for casinos or betting platforms)
What Happens Next?
Underwriting & Risk Review
The acquiring bank and processor will review your application to assess:
Regulatory compliance and licensing validity
Chargeback history or exposure
Website security (SSL, privacy policy, responsible gaming disclosure)
Payment flow and refund policies
This step ensures your business meets both compliance standards and risk control requirements.
My Application is Approved... What are the Next Steps?
Account Approval & Integration
Once approved, you’ll receive your merchant account credentials and gateway integration details.
Our technical team helps you connect via:
API or hosted payment page
Custom plugins for platforms like SoftGamings, BetConstruct, or custom-built casino sites
We also perform test transactions to ensure everything runs smoothly.
What Support will Hero Provide?
We provide ongoing support throughout your application.
After successful testing, your account goes live.
From there, we provide:
Real-time transaction monitoring
Fraud prevention and chargeback alerts
Ongoing compliance and reporting support
Dedicated account management