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The global tobacco giant is betting that products like its new iQOS electronic cigarette will be what fuel the next phase of expansion, and it is investing $100 million this year on them in the belief it will add as much as $1.2 billion to its earnings by 2020

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The fastest path to stable smoke shop payment processing: Apply with a high-risk specialist: a payment processor that explicitly supports tobacco and smoke accessory retailers Ensure MCC 5993 classification: the cardbrands require this Merchant Category Code for tobacco product sellers Prepare your documents: business license, government-issued ID, voided check or bank letter, and processing statements (if applicable) Expect 1-3 business days for approval and terminal setup with a reputable provider Confirm compliance features are included including age verification prompts, PCI DSS compliance, and chargeback protection are non-negotiable Running a smoke shop in 2026 means navigating a thicket of federal regulations, card network rules, and underwriting scrutiny that most mainstream processors simply arent equipped or willing to handle

Of the 61 that provided records to KyCIR and ProPublica, 53 reported selling e-cigarettes to inmates

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Smokers also face stigma or disapproval from nonsmokers