Things We’ve Learned About Financial Services for Vape Companies

May 27, 2025

There’s no doubt that the vape companies have seen significant success in the global market, paving the way for new startups, innovative products and evolving consumer trends. The vape sector has triggered a shift in both market dynamics and consumer preferences. However, despite the surge in popularity and increase in demand, this sector has witnessed a lot of challenges since the beginning, rooted in factors like being flagged high-risk by financial institutions, legal issues, uncertainties and reputational issues associated with them. These factors have resulted in difficulty in securing financial services for vape companies, creating numerous hurdles in their way. That’s where Wirewand steps in!

Wirewand has been helping the vape sector for years now, leveraging our extensive network of financial service providers. Our connections allow us to match the perfect high-risk financial solutions for businesses so they don’t have to face issues like delays, rejections, or compliance challenges. Being in the industry and working directly with high-risk businesses like vape companies, we have gained some valuable insights, which are listed in this blog.

1. You can’t overlook legal grey areas

Vape businesses face heightened regulations due to the nature of their products. However, this sector is considered legal in most places, but that doesn’t give the vape companies a green signal to operate freely. The vape industry is still heavily regulated under strict rules. Moreover, the laws vary between regions and undergo constant changes. How does this impact financial services for vape companies? The regulations are essential to understand because high-risk businesses like vape can lose access to payment services due to one misstep, i.e., not paying attention to the legal grey areas. For example, a vape company operating internationally sells products with certain flavours that aren’t legal in some countries, making their product illegal in those regions. Not clarifying this to the financial service provider can result in sudden account closure.

2. Being legal doesn’t mean easier financial operations

Being legal doesn’t mean it is straightforward and easy to secure financial services for vape companies. This is a common misconception, and the reality is that any business that is classified as ‘high-risk’ faces issues in getting a business account and financial services. This means traditional bank accounts are not an option for businesses in these sectors; moreover, legal issues can still become a roadblock with non-bank financial service providers. Moreover, if your product or services do not fully comply with the regulations, you still might face scrutiny, delays and account closures.

3. These sectors need specialised financial solutions

Many businesses make the mistake of going with any available financial service provider, but being in a high-risk sector, this isn’t suitable for your business in the long run. A high-risk business like a vape company has unique requirements, compliance challenges, evolving regulations and much more. Businesses often believe that choosing specialised financial services for vape companies means paying a lot more. What they miss out on is the needs of their business, which can’t be fulfilled with generic services, such as flexible risk tolerance, higher chargeback tolerance, and international transaction support requirements. The wrong choice can cause disturbances in their operations and may result in being overcharged or sudden closure.

4. It is essential to consider both local and international regulations

Many vape businesses operating in the UK source products from overseas or expand their business globally, but when it comes to choosing a financial service provider, they only look for one that supports UK regulations. In our years of experience, we have seen many businesses make this mistake and face consequences like payment cancellations. However, delays and sudden account closures are not easy to handle, as they can disrupt your whole business, adversely affect your cash flow and cease your operations. Therefore, the best way to keep your cash flowing is to consider both local and international regulations and keep your business and operations aligned with the regulations. Having financial services for vape companies that meet international regulations also helps you scale efficiently. So when you are taking your vape business to the global market, you don’t need to find a new provider.

How Can We Help?

When running a vape business, you are one misstep away from an account freeze and payment disruption. That’s why you need the right financial services for vape companies to keep it moving. Wirewand specialises in helping businesses like yours find the perfect match. We have our connection and know where to look, how to find the right services, and how to set up financial services for you.