Which companies will process credit card transactions (Internet Merchant account) for cigarette sales?Thanks?

I believe any credit card company will process those transactions as long as the credit card is named as a “business or merchant” account with the credit card company. There is a limit on the number of cartons any individual may buy and sell of cigarettes, liquor, and those items that are specifically taxed state-by-state.

If you purchase cigarettes or anything regulated by Federal Department of Alcohol Tobacco and Firearms, any purchases falling under their umbrella can be watched, regulated, and you may be asked to give an accounting of your sales, taxes paid, etc.

Your business will need to make application for a credit card, giving P&L information, current financial status, etc., of the business. But as long as the credit card is a “corporate” or “business/merchant” account, you should be fine.

Assuming that you have your house in order in regards to the legalities of selling this product on the internet, pretty much any merchant processor can provide these services. Be sure to pick one that is an experienced e-commerce processor.

Setting up such an account is a multi-faceted process.

From a technical standpoint, you will need to set up your website, shopping cart and gateway. Your chosen processor should be able to handle the gateway.

Choosing a processor for this type of endeavor should be based on services offered and experience as well as on rates and fees. You will not receive the commonly advertised rates for these types of transactions when you sell on the internet as these fees (1.8% and below) are only valid for transactions when the customer is present and the card is swiped. Most reputable processors offer very similar rates and the choice has more to do with finding a processor who can support your specific needs.

Lastly, expect to share personal financial info. If you were to go belly up or otherwise not deliver product that has been paid for, your processor is on the hook to pay back your customers. Your SS# and some financial info will be requested to assure that you are not a risky proposition. Be careful about who you are dealing with when you share this info.

If you would like more information, feel free to contact me at or call me at (920)993-9433. I will be able to help you sort through setting this type of an account up and point you in the right direction.

Additional Info:

You should be able to get a merchant account if you are selling this product legally and taxing when necessary.

Here is a copy of our company’s restricted merchant list. It is very similar to others:

A.Products
1.Pornographic/adult material
2.Real estate sales/Time share condo sales
3.Non-retail computer software*
4.Lotteries

B.Services
1.Bail bond services
2.Check cashing establishments
3.Collection agencies
4.Companion or escort services
5.Gambling establishments*
6.Travel agencies*

C.Methods of Sales
1.Door-to-door
2.Pyramid distribution
3.Outbound telemarketers*

*Indicates a prospective merchant account that can be reviewed on an exception basis.