When “High Risk” Becomes “High Alert”
If you run a vape shop, you already know how hard it can be to find reliable merchant services. What you might not expect? Getting an email out of nowhere that your account has been frozen—or worse, shut down entirely.
This is more common than most shop owners realize.
Processors like Stripe, Square, and PayPal can—and do—drop vape shops without warning. Why? Because the vape industry is categorized as “high risk,” even if your business is legal and compliant. From age-restricted products to industry-specific regulations, many mainstream processors just aren’t set up to manage the nuance.
So what should you do if your processor pulls the plug?
Step 1: Don’t Panic—Protect Your Deposits
First things first: check your pending payouts. Many processors will freeze access to your funds when they terminate your account. You should immediately download all transaction history and payout reports. Then, reach out to their support to confirm what will happen to your held funds.
In some cases, it can take 90–180 days to get your money back.
Pro tip: If you’ve already found a compliant, high-risk merchant account provider, ask them to help expedite the process. They may have experience working with the same processor you’re trying to leave.
Step 2: Find a High-Risk Approved Merchant Account
This is where the real fix happens.
You don’t just need a new payment processor—you need one that actually supports vape. Look for a provider that’s explicitly high-risk approved and works with multiple acquiring banks. This allows for more flexibility and protection if one banking partner changes its policies.
Ask these key questions before switching:
Do you support high-risk businesses like vape and smoke shops?
What are your policies for age-restricted transactions?
Can you provide tools to help stay compliant (e.g. age verification)?
Do you offer chargeback protection?
Step 3: Secure Your Business for the Long Haul
Getting dropped once is rough. Getting dropped again is avoidable.
Once you’re set up with a high-risk processor, take the extra step to future-proof your account:
Set up age verification at checkout.
Use clear billing descriptors so customers don’t dispute charges.
Monitor for suspicious transactions or volume spikes.
Understand the fine print—especially around prohibited items and advertising restrictions.
These best practices not only reduce your chargeback risk—they also help keep your account in good standing.
The Bottom Line
Being in a regulated industry doesn’t mean your business should suffer. But it does mean you need partners who understand your world. If your vape shop has recently been dropped by a processor, or you’re looking to switch to something safer, now’s the time to move.
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