Many “preferred” or “recommended” payment gateways are not high-risk friendly

Below is a case study composite.  This is from some very recent experiences showing the importance of reading your terms and conditions before you automatically sign up for your website builder’s “preferred” payment gateway or merchant account.

I just finished my second of two long conversations with a client we will call Erica in Texas. We spoke about her challenges trying to set up a payment gateway for her online e-juice store with her current website provider. This hosting company happened to be offering site-building and processing through their preferred providers as well. We have dozens if not hundreds of folks using her same hosting company and normally it is a great solution. Like all great solutions though, it depends on your situation. In Erica’s case, they were not a perfect fit for her online electronic cigarette store.

A little background:

She has a very successful E-Cig brick and mortar store (doing 10’s of thousands of dollars a month after only 8 months — people drive hours for her vaping liquids).

She, of course, wanted to put their products online and reach a wider audience.

Since her domain was already registered and they had been happy faithful customers for many years, she decided to use other services recommended by her hosting company.

So, she spent the time required to build her E-Cig store with their website builder, added their shopping cart, and was excited to finally start selling.


That’s when she ran into a brick wall. She was turned down for a merchant account — through her hosting company’s recommended provider — for selling E-Cigs! Jumping on the phone, she called only to find that they don’t allow E-Cig stores through their website builder either, nor do they allow them to be sold through their shopping cart! She never read their terms and conditions and had no idea she couldn’t sell E-Cigs through her new site. To say she was confused as to where to go next, does not begin to describe her feelings!  Emily is now considering other user-friendly site builders, like the super popular and easy to use DreamHost platform. She is now hard at work rebuilding her website, and was thrilled to hear about all our solutions, like payment gateways through Network Merchants, Inc (NMI) that are E-Cig friendly and will work seamlessly with her new site!

If you have any questions about e-commerce payment software or the in’s and out’s of high-risk payment gateways, please contact us anytime.