Merchant Discount Rate

A solution that works when Paypal, Square, and Stripe Don't.

As you know, being able to accept credit cards is an integral part of your business. The line of business you are entering will dictate what service you'll be able to use for your credit card processing. For sake of this conversation, we are targeting  online retailers that are considered High Risk by Pay Pal, Square, and Stripe. Presently High Risk businesses include the online sales of items such as adult novelty, obscene material, pornographic material, drug paraphenalia such as bongs, hookahs, electronic cigarettes, vaporizers, ejuice ( e-liquid ) , Tabacco related products, and other items. ( to see more go to:Paypal acceptable products, Square prohibited products,  Stripe prohibited businesses

First, lets discuss the con's of PayPal from the standpoint of the business owner accepting credit cards.. Most people are familiar with Pay Pal from using Ebay auctions. Paypal is an Ebay company and this synergy makes logical sense.  However Paypal can also be added to most websites. So long as you're not selling questionable products, or High Risk items.

PayPal Con#1 - Unclear on Acceptable Products.
PayPal is not very clear about these acceptable products. Nowhere on the Paypal acceptable products list do they state in a clear manner that they do not accept payments for electronic cigarettes, vaporizers, and ejuice ( e-liquid ). We have encountered many disgruntled Pay Pal customers that were shut down by PayPal for the sales of these items. However, we are also aware of many other customers using Paypal to sell these goods. To add fuel to the fire we called Paypal several times to find out these products are banned. I asked the representative, if this is the case, how come these actual products are not listed. The representative had no reason. Don't take my word for it, call yourself. We find Paypal is constantly keeping you guessing! I personally believe they do this for a reason. Partly because they are making a boat load of money off these products and two, they don't want competitors to know exactly what they are doing.

PayPal Con#2 - Deposits
IF you are one of the ones Paypal hasn't shut down, you'll experience a lag time in getting your deposits. Once you sell an item, your funds are deposited into your Paypal account and not your bank account. You'll need to initiate a transfer to your bank account which takes 3 - 5 business days. This can create cash flow issues. I don't know this for fact but I believe Paypal is making money off the interest of your money while held in Paypal account. Just my opinion. Could also be because Paypal is the holding company and ACH transfers typically take 3 - 5 business days. Nonetheless, your funds are not directly deposited into your bank.

PayPal Con #3 - Website Integration
If you are able to use paypal on your website, PayPal doesn't integrate with websites. Yes you can add a PayPal check out button. But this is not true integration. Meaning, when your customer checks out, they leave your website to go to Paypal to pay. This adds to abandoned carts and lost sales.

Merchant Discount Rate is viable solution for high risk online retailers. MDR is very clear in the products that are accepted. You'll find that our credit card processing solution is a viable and scalable solution for Adult Novelty online retailers, Ecig online retailers, vaporizer merchants. To add, MDR deposits funds directly into your bank account in 24 - 48 hours. Once the sale is transacted and captured by you , the transfer happens automatically. Lastly, MDR integrates seemingly with 400 websites.


Stripe is another payments solution that doesn't support adult toys, adult specialty stores, ecig online retailers, vape shops, or e-juice online retailers. We have gotten calls from merchants that started processing without knowing the products they were selling were banned. After several weeks up to several months, these merchants were terminated.

Unlike Stripe, Merchant Discount Rate will inform you up front whether the product your selling will be supported or not. MDR specializes in credit card processing for ecig online retailers, vape shops and vaporizer merchants, as well as e-juice companies. 

In closing Paypal, Square, and Stripe are not viable solutions for the online sales of adult specialty products, ecig , vaporizer, or e-juice, water bongs, hookahs. Merchant Discount Rate offers the high risk market a long term credit card processing solution. Merchant Discount Rate also offers various pricing models, and website integration. Some of the other competitive advantageous include:

  • No Contract

  • 0 Termination Fee

  • No annual assessment fee

  • Flat Rate pricing

  • Support High Risk Products

If you'd like to learn more about Adult Specialty Merchant Accounts, Ecig Merchant Accounts, Vaporizer Merchant Accounts, Ejuice Merchant Accounts

SquareSquare is another popular method of payment for many retail businesses. However, they do not allow for the online sales of adult specialty products, drug paraphanalia ( water bongs, hookahs, etc.) electronic cigarettes, vaporizers, or e-liquid. Because of this mere fact, Square doesn't represent a viable option. However the reason we are discussing it, is because Square does allow for the sales of electronic cigarettes and vaporizers in retail stores. So if you choose to use Square in your retail vape shop, you'll have to find another solution for your online shopping cart.On the other hand, Merchant Discount Rate offers you both retail and online solutions under one roof. In comparison to Square, MDR offers a better pricing plan. We can offer you Flat Rate pricing similar to Square or we can offer you a tiered pricing structure that can save you additional savings. We can perform a cost analysis  to get you the best savings.