Merchant Accounts for Cigar and Tobacco Businesses


Cigar and tobacco sales remain a significant part of the US economy. Cigars alone amounted to $8 billion in sales in 2017, and over 12 billion cigars are sold every year to consumers, with projections to increase over the next three years. Tobacco, as a whole, has grown over the last five years and accounted for over $120 billion in market value in 2018.

Despite the stability of the industry, tobacco merchant accounts are a difficult sell to many processors because they are labeled high risk. This is because of the large number of chargebacks in the industry, the age restriction on these products, and the strict regulations of the products on state and federal levels.

However, online tobacco accounts are even more challenging to board because it is difficult to verify the age of the customer buying the product when they are doing so online, which causes most processors to hesitate to work with these businesses because of the liability involved and the fear of increased regulation.

At Merchant Service Group LLC, we recognize that tobacco sales are still strong and that luxury cigars, custom pipes, and unique tobacco products are sought after in great numbers. Instead of paying attention to the four-digit code your business falls under, we treat your tobacco merchant application like any other and review your credit history and business’s financial health instead of your industry classification.

We offer gateway or online shopping cart solutions for businesses focused on online sales, numerous mobile and terminal solutions for those who conduct business at their store or over the phone, and a combination of solutions for businesses who take advantage of both. An experienced technical team is on hand to help customize a solution for your business along with a customer service team that provides 24/7 support.

For more information, please email us at

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Merchant Accounts for Cigar and Tobacco Businesses