The systematic de-platforming of the vape industry
If you're a vape merchant and you still have Stripe, it's not because Stripe likes you. It's because they haven't gotten to you yet.
The pattern is consistent across every major processor: policy update → account review wave → mass terminations → merchants scramble for alternatives → alternatives tighten too.
Which processors have already tightened
- Stripe: Banned all nicotine and tobacco products globally in Feb 2026
- Shopify Payments: Requires age verification + compliance docs for vape; many accounts terminated
- PayPal / Braintree: Added nicotine to prohibited products list in Q4 2025
- Square: Requires business license + age verification for any tobacco-adjacent product
- Affirm / Klarna: Removed vape from BNPL eligibility
What's driving this
It comes down to risk math. Payment processors earn 1.5–2.9% of each transaction. They face potential CFPB enforcement, card network fines of $10,000 per violation, chargeback liability, and reputational risk — all for processing a $30 vape purchase. The math doesn't work unless merchants can demonstrate zero regulatory exposure.
Is your store at risk?
Run a free compliance audit and find out exactly which products and policies are exposing you to fines and payment processor terminations.
Run Free Audit →Options that still exist
High-risk specialized processors
Companies like PaymentCloud, Soar Payments, and Durango Merchant Services are purpose-built for high-risk verticals. Expect 3.5–5% rates, rolling reserves of 5–10%, and strict compliance requirements.
Documented compliance = lower reserves
High-risk processors set reserve requirements based on perceived risk. Stores with documented, third-party compliance audits — like those generated by Vapely — consistently negotiate lower reserves and faster payouts.