What To Look For in a Vape Dropshipping Payment Processor

What To Look For in a Vape Dropshipping Payment Processor

Chris Sentz
3 minute read

As an online merchant, credit card processing is vital to the survival of your business. However, certain businesses carry a greater risk than others in the eyes of merchant service providers. Vape shops are an example of one of these 'high-risk' businesses. If you're planning to start a vape dropshipping business, read on to see what your options are for payment processing.

You’ll find that many merchant service providers consider any vape shop a high-risk business. This means you may not be able to partner with certain payment processors. You might also be subject to higher transaction fees. As a small business, any limits on your ability to process credit card transactions will severely stunt your growth. 

In this post, we’ll explore high-risk credit card processing for vape shops so you know what to look for in a payment processing partner. This is especially important for any entrepreneur planning to dropship vapes online.

Why are Vapes Considered a High Risk Industry?

The vaping industry and its products are still somewhat new to the public. This is one reason vape shops are considered high-risk from a business perspective. As the industry evolves, so does the research and regulation around it.

Since there are still unanswered questions around the safety and legality of vape products, many states haven’t yet established laws and regulations around the industry. This makes it difficult to tell what the industry will look like in the long term. 

A lack of research regarding the health effects associated with vaping has also led to the industry being labeled as high-risk.

What Should You Look for in a Payment Processing Partner for Vape Shop Merchant Accounts?

vape dropshipping payment processor

BigCommerce does an excellent job covering a general list of things to keep in mind when looking for a payment processing partner, but we want to highlight two offerings that vape shops should look out for specifically.


  • Fraud and chargeback protection tools


The vape industry is often targeted by chargeback schemes, so it’s important to protect your business from fraudulent activity. Carefully review the fraud and chargeback protection tools offered by potential payment processing partners.


  • Customer age verification


The federal government has age restrictions in place for businesses processing payments for vape products. Finding a payment processor that has a system for verifying customer ages will help you meet federal regulations and many state requirements around verifying customer ages.

You may find vape dropshipping businesses creating ways to avoid being labeled as a high-risk business with their payment processor, but we do not recommend this. It’s best to be honest with any payment processors you might partner with. Don’t risk losing sales or your merchant account because of inaccurate information. 

Are you looking for a third-party payment processor? DigiPay is fully integrated with Shopify to support payment processing for CBD and hemp-based products. From risk management and regulatory oversight, to rich customer analytics and chargeback prevention, DigiPay offers a variety of different benefits for your business.

No matter the size of your business, DigiPay is equipped with the experience and expertise needed to create a flexible payment solution that works for you.

Smoke Drop is proud to partner with DigiPay to offer merchants a streamlined process for applying to DigiPay and matching your business with the right banking partner. Click here to start your pre-application today.

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