Although my formal training is as a Pharmacist, I'm also a partner in a mid-sized credit bureau/collection agency. We represent MOSTLY healthcare providers, but we do represent some small local business's that sell over the internet. The majority of these clients collections matters have to do with internet Credit/Debit Card chargebacks(which are rampant in the industry). As a result I speak with bank processors and internet gateway processors(the biggest being authorize.net) fairly often. I was speaking with the authorize.net fraud rep a few days ago and we got into a side conversation and I happened to mention to her that I am an e-cig user. She started to laugh and insinuated that she knew the issue well(but certainly not in a good way). The next big hurdle for payment issues for e-cig suppliers(the 1st being PayPal) is going to be gateway processors(i.e authorize.net, et al). Apparently e-cig sales are expressly prohibited by authorize.net service agreement. She went onto say that although merchant service providers can "sign up" any merchant they want to use the gateway, ultimately, if the gateway processor finds out that the merchant is prohibited, they will shut down the merchants account. Once shut down it will be difficult, if not impossible, for that same merchant to obtain CC processing services in the future. Once ASH starts a meaningful e-cig smear campaign with the gateway providers(as they did with PayPal) OR an irate customer contacts the gateway processor, the gig, as it were, may be up. Supplier's be careful!!!!




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