Alcohol Merchant Accounts

We support all businesses involved in the production or sale of alcohol products, whether through physical establishments or services that sell alcohol in accordance with state restrictions. Our supported products include:

• Nightclubs
• Alcohol Manufacturers
• Taverns
• Speakeasies
• Spirits Shops
• Pubs
• Alcohol Wholesalers
• Wineries
• Alcohol Importers

Alcohol merchants are often categorized as high-risk by financial institutions, payment processors, and regulatory bodies for several reasons:

Legality: There are strict age restrictions on alcohol sales, and enforcing age verification protocols can be challenging. Although alcohol can be purchased online in 48 of the 50 states, except Alabama and Utah, numerous state and local laws regulate the types, locations, days, and quantities of alcohol purchases.

Fraud: The alcohol industry is prone to frequent occurrences of fraud, including credit card fraud and underage buyers attempting to make purchases both locally and online.

Chargebacks: Disputes over chargebacks are a primary reason for the cancellation of merchant accounts. Chargebacks are costly, time-consuming, and deter many financial institutions, making industries with higher exposure to chargebacks, such as alcohol, tobacco, and other controlled substances, more high-risk.

Other Liabilities: These include specific licensing requirements for alcohol, tax collection obligations, and penalties for non-compliance.

Given these inherent risks, alcohol merchants sometimes struggle to obtain necessary financial services like payment processing, loans, and insurance. Mainstream payment service providers may even revoke accounts for businesses that sell alcohol.

Partnering with a merchant service provider like Mega Payments, which specializes in high-risk merchant services, can set your business up for success. We can assist in demonstrating strong compliance, implementing effective age verification systems, establishing robust fraud prevention measures, and maintaining a responsible alcohol sales record.

These efforts can help you secure reliable payment services and mitigate the risks associated with the alcohol industry right from the start.

To open a merchant account for your alcohol business, you’ll need to gather a set of standard documents that are essential for verification and compliance purposes. Here’s what you will typically need to provide:

• Government-Issued Photo Identification: A valid, government-issued ID to verify your identity.
• Signed Merchant Application: A completed and signed application form for your merchant account.
• Voided Check or Bank Letter: This document is needed to establish the banking information for where funds will be deposited.
• Three Months of Bank Statements: Recent bank statements to demonstrate your business’s financial stability and cash flow.
• Three Months of Processing Statements: If applicable, past processing statements to show your business’s sales volume and transaction history.
• Current Certificate of Analysis (COA): For businesses that manufacture or distribute alcohol, a COA verifies the quality and compliance of the alcohol with industry standards.
• List of Suppliers: A document detailing your suppliers, important for verifying the source of your alcohol products and ensuring compliance with supply chain regulations.

Gathering these documents beforehand can streamline the setup of your alcohol merchant account, helping you to quickly start processing payments and managing business finances more effectively.

Online
For eCommerce solutions, Midwest Merchant Services provides a state-of-the-art payment gateway designed to securely accept online payments. We ensure safety and convenience with a secure virtual terminal for accepting customer payment details via phone or email. Our virtual terminals feature an easy interface, simplifying the process of accepting card-not-present payments.

In Person
If your alcohol business has a brick-and-mortar presence, our retail payment solutions include user-friendly stationary and mobile card readers. These devices make it easy to accept payments directly at your kiosk or storefront, enhancing the customer experience and streamlining your sales process.

Over the Phone
Enhance customer convenience with our secure virtual terminal, designed to accept over-the-phone payments. This option allows you to process payments securely via phone and email, with a user-friendly interface that simplifies the acceptance of card-not-present transactions, ensuring a smooth experience for both you and your customers.

At Mega Payments, we ensure our staff is well-versed in the specific rules and regulations of each high-risk industry, including alcohol and tobacco. An experienced account manager will help ensure that your merchant account is fully compliant with all industry regulations. In fact, alcohol sellers can often qualify more quickly, easily, and at more competitive rates than ever before.

When you partner with Mega Payments, you also gain access to our extensive network of payment solution providers and merchant resources. This connection opens up the broader financial universe to you, with expert integrations designed to streamline your workflow and enhance your business operations.