Processed like retail, not like a problem.
Underwriting that knows the category, pricing options that fit thin margins, and hardware that doesn't get shut off after 60 days.
The processor that onboards you, then drops you
Most vape and cigar shops have been through the same story: a generic processor signs them up, takes 30 to 90 days of volume, then suddenly freezes the account citing a prohibited merchant category. By the time you find out, your funds are held and you're scrambling for a new processor mid-week. We underwrite these accounts correctly on day one — proper MCC, accurate product mix disclosure, and a partner bank that actually supports the category — so you don't end up frozen after your best month of the year.
The right program for this category
Cash Discount / Dual Pricing (0% processing)
Our first-choice program for this category.
Interchange-Plus if you'd rather not pass the fee
Honest pass-through alternative — no surprise markups.
Cash discount helps protect already-thin margins in a category regulators scrutinize. If you'd rather absorb the fee, interchange-plus is the cleanest transparent alternative.
Hardware, POS, and gateway matched to the category
Payment terminals
Dejavoo Z11 countertop, Valor VL110 for mobile or event use, Clover Flex for flexibility.
Point-of-sale systems
OctoPOS is purpose-built for smoke and vape retail with age-verification, inventory, and loyalty built in. Clover or EposNow as alternatives. We place the account with a partner bank that supports the category.
Gateway
NMI for online sales where permitted by state law; age-verification and shipping controls handled at the platform level.
Add-ons and integrations
ID scanning at the terminal, inventory and loyalty integrations, state-compliance workflow support.
Category-specific safeguards
- Correct MCC placement (5993 for tobacco/cigar, or specialty retail as appropriate)
- Partner bank selected for category compatibility
- Age-verification support at the terminal
- PCI support included
Common questions
My last processor dropped me. Can you actually keep the account open?
Yes, if we underwrite it correctly from the start. Most drops happen because a generic processor didn't disclose product mix accurately at setup. We do, and we place the account with a partner bank that knows the category.
Does cash discount apply to all my products?
It applies to the portion of your volume that qualifies under the compliant surcharge program. Your specialist will walk through exactly what qualifies before you sign.
What about online sales?
Online vape and tobacco has its own shipping, age-verification, and state-by-state compliance requirements — see our high-risk Tobacco & Vape page for online accounts.
Ready for a real quote?
Send your last statement. A specialist returns the math and the program that fits your business — usually the same day.