Merchant Processing for Beer, Wine and Alcohol Retailers

Consumers nowadays have numerous options to obtain their preferred alcoholic beverages, including in-person bars, breweries, and restaurants, online sales, and even monthly subscriptions.

Despite this, some banks still consider alcohol sales a high-risk industry and may not provide support with credit card processing or merchant services. In such cases, you can rely on Moneybox for assistance.

Beer, Wine, and Alcohol merchants are often considered high-risk by financial institutions, payment processors, and regulatory bodies due to several factors.

Legality: Alcohol sales are subject to various restrictions, such as age restrictions and verification protocols, which can be challenging to enforce. Additionally, state and local statutes regulate the type, location, day of the week, and quantity of alcohol that can be purchased.

Fraud: The alcohol industry is prone to fraud, including credit card fraud and underage consumers attempting to make local and online alcohol purchases.

Chargebacks: Disputes over chargebacks are the primary reason merchant accounts get canceled. Chargebacks are expensive, time-consuming, and may discourage financial institutions from working with alcohol merchants.

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

Due to these inherent risks, alcohol merchants may face difficulties obtaining payment processing services, loans, and insurance coverage. Mainstream payment service providers may revoke accounts for businesses that sell alcohol, making it challenging for these merchants to operate in the market.

Have a liquor store? Sell Beer, Wine, and Alcohol and want to accept credit cards and save money? Get a quote today.

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Getting Started

Merchants in the beer, wine, and alcohol industry need a permit from the Alcohol and Tobacco Tax and Trade Bureau (TTB) to open a business. The TTB enforces the FAA Act to ensure proper labeling, advertising, and age controls. State-level authorities to implement also laws.

Once you have permits and comply with regulations, you will need to submit the following documents.

  • A signed merchant application
  • A voided check or bank letter
  • Three months of bank statements
  • Three months of processing statements
  • Corporation documents including your permit
  • A government issued ID