Why this is classified high risk
Vape and tobacco are restricted by Visa MCC 5993 and prohibited outright by Stripe, Square, PayPal, and Shopify Payments. Card brands also enforce shipping restrictions under the PACT Act, which makes carrier compliance (no USPS for nicotine since 2021) part of underwriting review.
FDA PMTA enforcement has further narrowed the SKU universe — products without an accepted PMTA cannot legally ship in the US. Real underwriting confirms your catalog is PMTA-compliant or grandfathered before opening the MID.
Features included
Veratad / AgeChecker / BlueCheck pre-checkout to satisfy card-brand and state requirements.
We confirm your carrier mix (UPS, FedEx, regional) and registration before the acquirer touches the file.
Tokenized rebills for e-liquid, pod, and disposable subscription programs.
High-volume vape retailers split volume across two MIDs for redundancy and rate-blending.
Underwriting documents you'll need
- Merchant application + voided check
- Last 3 months bank + processing statements
- PMTA acceptance letters or grandfathered SKU list
- Age verification vendor confirmation
- PACT Act registration (state + federal)
- Tobacco/vape state license where applicable
Pricing factors
Vape and tobacco pricing typically lands at 3.95% – 5.45% + $0.25, with 5–10% rolling reserve for 180 days. Disposables and synthetic-nicotine SKUs price toward the high end given PMTA uncertainty.
Established multi-year brands with low chargebacks and full PMTA coverage routinely qualify near the low end and step down reserve after 12 months of clean history.